Zambia’s external debt position improved in 2024 following a major restructuring, even as borrowing across Sub-Saharan Africa increased, according to the World Bank’s International Debt Report 2025.
The report shows that Zambia was among the countries whose debt growth slowed due to successful restructuring agreements with creditors, particularly bondholders.
In May 2024, Zambia concluded its Eurobond restructuring covering US$3.9 billion, including US$3 billion in sovereign bonds and US$890 million in unpaid interest.
Under the deal, about US$840 million in past-due interest was forgiven, reducing Zambia’s debt burden by around 40 percent in present value terms.
The old bonds were replaced with two new bonds worth US$3.05 billion, with repayments linked to the country’s economic performance under the IMF programme.
The World Bank notes that debt restructuring in Zambia and Ghana helped slow external debt growth in Sub-Saharan Africa in 2024, despite net debt inflows in the region nearly tripling to US$48.7 billion, largely driven by South Africa.
The report adds that multilateral lenders, including the World Bank, remained Zambia’s main source of financing, while access to private capital markets began to improve.
Overall, Zambia’s restructuring has eased short-term debt pressure and created room for economic stability and growth, although fiscal discipline remains critical.
By Rachel Mumba
