Zambia’s annual external debt-service payments are projected to fall to about US$900 million from 2026, following the country’s successful debt restructuring.
Secretary to the Treasury Felix Nkulukusa says this is significantly lower than the estimated US$2.6 billion per year that Zambia would have been required to pay without the restructuring. He says the reduction has eased pressure on government finances and created fiscal space for investment in key sectors.
Mr. Nkulukusa says before the debt restructuring, nearly K70 out of every K100 collected in domestic revenue was required for external debt service.
This has now fallen to approximately K15 out of every K100, allowing government to channel more resources towards education, health, agriculture, social protection and infrastructure.
He says the debt restructuring, coupled with economic reforms, has also contributed to improved macroeconomic stability, with inflation returning to the six to eight percent budget target range and the fiscal deficit declining from nine percent in 2021 to 3.8 percent in 2025.
International reserves have also increased from about US$3 billion in 2021 to US$6.5 billion by June 2026.
Mr. Nkulukusa says Zambia must now protect the gains made through debt restructuring by maintaining fiscal discipline, pursuing prudent borrowing and directing resources towards productive investment.
He says the ultimate objective is to ensure the breathing space created by lower debt-service obligations translates into more jobs, higher incomes, increased productivity and improved livelihoods for Zambians.
By Rachel Mumba
