Zambia’s public debt-to-GDP ratio projected to fall below 100% for first time in over seven years — IMF

Zambia’s public debt-to-GDP ratio is projected to decline to 91.1 percent by December 2025, marking the first time in more than seven years that the figure will fall below the 100 percent threshold, according to a new country report released by the International Monetary Fund (IMF).

The report, issued on August 5, 2025, forecasts a continued downward trend, with the ratio expected to drop further to 69.4 percent by 2027.

The IMF attributed this positive outlook to a combination of successful external debt restructuring, sustained fiscal consolidation, and strengthened macroeconomic management under the Extended Credit Facility (ECF) programme.

Finance and National Planning Minister, Situmbeko Musokotwane, welcomed the development, describing it as a strong sign of macroeconomic stability and the effectiveness of the government’s economic reform agenda.

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“A declining debt-to-GDP ratio is a critical indicator that the economy is growing faster than the debt burden, reducing the risk of debt distress,” Musokotwane said.

“Numbers don’t lie. Our prudent economic management and debt restructuring efforts are beginning to bear fruit. The difference is evident. The lower the public debt-to-GDP ratio, the greater the investor confidence in our economy. This translates into more jobs, more development, and more wealth for the nation,” he said.

Lower public debt levels are expected to create additional fiscal space, enabling increased government investment in key sectors such as infrastructure, health, education, and social protection—rather than allocating large portions of revenue to debt servicing.

The improvement in Zambia’s debt outlook also enhances the country’s creditworthiness, lowers borrowing costs, and strengthens its reputation among international financial institutions, development partners, and investors.

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