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The Centre for Trade Policy and Development (CTPD) has raised concern over the slow pace of Zambia’s debt restructuring process, warning that prolonged delays continue to weigh on the country’s sovereign credit rating and macroeconomic stability.
While welcoming Zambia’s recent US$335 million debt restructuring deal with the Export-Import Bank of India, the CTPD emphasized the need to sustain momentum in concluding outstanding negotiations to transition from debt distress to durable economic resilience.
By the first quarter of 2025, Zambia had successfully restructured over 90 percent of its targeted US$13.34 billion external debt stock—about US$12 billion. This includes US$6.3 billion from Official Creditor Committee (OCC) members, US$3.84 billion from Eurobond holders, and US$1.87 billion out of the US$3.2 billion owed to other private creditors under the G20 Common Framework.
CTPD Public Finance Researcher, Robert Mwale, noted that drawn-out negotiations have hampered fiscal planning, dampened investor confidence, and slowed economic recovery.
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In a statement issued on Sunday, Mwale stressed that timely resolution of the remaining debt deals was crucial to unlocking concessional financing, easing debt servicing pressures, and allowing government to channel more resources into social and economic development.
“CTPD urges the government to intensify its diplomatic and financial engagements with private creditors and non-Paris Club lenders to expedite the conclusion of outstanding deals. These protracted negotiations continue to pose a significant risk to achieving comprehensive debt sustainability,” Mwale said.
He described the latest agreement—which covers US$320 million owed by the central government and US$15 million by ZESCO—as a pivotal milestone in Zambia’s debt restructuring journey.
“This marks a critical step in rebuilding investor confidence and fostering economic stability,” he added.
Zambia defaulted on its sovereign debt in 2020, prompting the country to seek comprehensive restructuring under the G20 Common Framework—a platform designed to coordinate the participation of both official and private creditors in a unified effort to restore fiscal sustainability.
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