Group urges bold reforms as Zambia’s debt hits 97% of GDP

The Civil Society Organisations (CSO) Debt Alliance has called for bold and urgent economic reforms, alongside enhanced transparency in Zambia’s debt management, warning that the country’s economic stability hinges on swift and decisive action.

CSO Debt Alliance representative, Daniel Mutale, revealed that Zambia’s public debt stood at US$25.03 billion at the end of 2024 — representing 97.24 percent of Gross Domestic Product (GDP).

Although this marks a nominal reduction from US$31.2 billion in 2023, the debt-to-GDP ratio has worsened due to a contracting national economy.

Speaking at the official opening of the 2025 African Conference on Debt and Development (AfCoDD) in Lusaka on Thursday, Mutale warned that domestic borrowing had surged by 76.5 percent since 2020, crowding out private sector investment and undermining Zambia’s economic recovery.

While acknowledging government progress in restructuring bilateral and bondholder debt, he noted that continued deadlock with some commercial creditors leaves Zambia in a financially vulnerable position.

“Our people are repaying debts that didn’t build the resilient economy we envisioned,” said Mutale, citing compounded challenges such as the 2023/2024 drought, electricity shortages affecting mining, rising maize import costs, poor tax administration, and unsustainable commercial borrowing.

Mutale also emphasized the need to integrate climate justice with debt justice, condemning persistent public resource mismanagement, as reflected in recent Auditor General’s reports.

He reaffirmed the CSO Debt Alliance’s commitment to promoting public accountability, raising civic awareness, and bridging the gap between citizens and state institutions.

Meanwhile, the African Forum and Network on Debt and Development (AFRODAD) has sounded the alarm over the continent’s deepening debt crisis.

AFRODAD’s Policy Analyst and Advocacy Officer for Sovereign Debt Management, Catherine Mithia, disclosed that African countries paid a staggering US$163 million in interest payments alone in 2024, driven by rising borrowing costs.

“Africa is the only region where debt is growing faster than GDP. This underscores the deep-rooted injustices within the global financial system, which continue to trap African nations in cycles of debt and dependency,” Mithia said.

By the end of 2023, Africa’s total debt stock had reached US$1.8 trillion, with nine countries in debt distress and eleven others at high risk.

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