Zambia, Israel Sign US$460m Debt Deal to Ease Economic Pressure and Support Public Spending
The Governments of Zambia and Israel have signed a US$460 million debt restructuring agreement aimed at supporting Zambia’s fiscal stability and long-term economic recovery.
The amendment agreement, signed at the Ministry of Finance and National Planning in Lusaka, covers the restructuring of debt obligations owed to the Government of Israel through to 2043.
The debt relates to facilities backed by ASHRA and includes financing linked to sectors such as agriculture, defence, and healthcare.
Speaking during the signing ceremony, Minister of Finance and National Planning Situmbeko Musokotwane said the agreement represents another important milestone in Zambia’s broader external debt restructuring programme following the country’s debt default in 2020.
Dr Musokotwane stated that the progress made so far reflects Government’s commitment to restoring fiscal discipline, rebuilding international confidence, and achieving long-term debt sustainability.
He thanked the Israeli Government for its cooperation and constructive engagement throughout the negotiations, while also commending officials from both countries for successfully concluding the agreement.
According to Dr Musokotwane, the restructuring arrangement will help reduce debt servicing pressures and provide Government with additional fiscal space to support infrastructure development, economic recovery programmes, and social sector investments.
He further reiterated Government’s commitment to prudent debt management, transparency, and continued engagement with international creditors and cooperating partners as Zambia advances its economic reform agenda.
Meanwhile, Israeli Ambassador to Zambia Ofra Farhi described the signing as a reflection of the strong bilateral relations and mutual cooperation between the two countries.
Ambassador Farhi commended the Zambian Government for its transparent and constructive approach during the restructuring process and reaffirmed Israel’s support for Zambia’s efforts towards economic recovery and long-term stability.
