Zambia and Italy Advance Debt Resolution Under G20 Common Framework
The Governments of Zambia and Italy have taken a major step in advancing Zambia’s debt resolution programme by signing a bilateral debt restructuring agreement under the G20 Common Framework for Debt Treatment.
The agreement restructures a €94.6 million facility, originally contracted on 29 June 2018 with INTESA SANPAOLO, extending its final maturity from 2027 to 2043. This 16-year extension eases near-term debt obligations while aligning Zambia’s repayments with its medium-term fiscal consolidation plans.
From a sovereign debt management perspective, the deal enhances liquidity, smooths the country’s amortisation profile, reduces refinancing risk, and creates fiscal space for infrastructure investment and social sector support.
The agreement is part of Zambia’s broader restructuring journey following its 2020/2021 sovereign default, characterised by transparency, creditor coordination, and multilateral engagement with the IMF under the Extended Credit Facility and the Paris Club. Zambia has recommenced debt service payments on all completed agreements, including the Italy facility, demonstrating commitment to payment discipline and sovereign credibility.
Beyond financial restructuring, the agreement signals a shift in Zambia–Italy relations from creditor engagement to a forward-looking development partnership. Key milestones include Italy designating Zambia as a priority country for development cooperation in June 2024, pledging €300 million towards the Lobito Corridor in July 2024, and Zambia’s inclusion in Italy’s Mattei Plan for Africa in February 2026.
The partnership focuses on high-impact sectors where Italian expertise complements Zambia’s development priorities. Cooperation will cover energy transition through renewable technologies, agribusiness value-chain development, infrastructure improvements in roads, railways, and dams, and industrial upgrading to enhance productivity and job creation.
H.E. Enrico De Agostini, Ambassador of Italy to Zambia, highlighted Italy’s “human-centred” approach to debt sustainability, stressing that sustainable debt outcomes underpin long-term development and investment confidence.
The agreement sends three key signals: it validates the operational effectiveness of the G20 Common Framework, supports Zambia’s macroeconomic recovery by easing debt burdens, and catalyses a shift from debt restructuring to investment, unlocking trade, infrastructure financing, and private sector participation.
The Zambian Government reaffirmed its commitment to honour all restructured obligations, maintain transparent creditor engagement, and ensure that future borrowing aligns with the Parliamentary-approved Annual Borrowing Plan, securing fiscal discipline and national development priorities.
The Italy–Zambia agreement is more than a restructuring milestone; it represents a strategic pivot from crisis management to sustained economic growth, underpinned by credibility, cooperation, and long-term investment.
