Zambia and France Forge Path for Debt Restructuring Success

Zambia’s long-standing debt challenges may soon see a resolution following a groundbreaking bilateral agreement between Zambia and France over the weekend.

Economic expert Kelvin Chisanga acknowledged the development as a “workable formula” for sustainable debt restructuring, fostering optimism for the nation’s economic recovery.

The agreement aligns with the G20 Common Framework, designed to address debt compatibility and applicable conditionalities.

Mr. Chisanga emphasized that this model respects outstanding creditors while promoting fair treatment of debt terms.

“This move will set a precedent for sustainable debt management and provide much-needed relief to Zambia’s economy,” Chisanga noted. 

He added that the prolonged debt burden has stifled investment and hampered the country’s potential to produce profitable outputs.

Mr. Chisanga expressed hope that the agreement would stimulate economic growth, predicting positive effects on Zambia’s local economy in the coming years. 

“This framework is not just a lifeline for Zambia but a template for addressing debt challenges in other nations,” he remarked.