Zambia, UK Sign Debt Restructuring Amendment Agreement Under G20 Framework
The Government of Zambia and the Government of the United Kingdom have signed a bilateral amendment agreement on debt owed to the UK, marking another milestone in Zambia’s ongoing debt restructuring process under the G20 Common Framework for Debt Treatment.
The agreement was signed in Lusaka by Finance and National Planning Minister Situmbeko Musokotwane and British High Commissioner to Zambia Rebecca Terzeon, with officials from the Ministry of Finance and representatives from UK Export Finance in attendance.
The amendment forms part of Zambia’s broader debt treatment programme with official bilateral creditors implemented in line with Paris Club principles. The revised terms reduce the outstanding debt from US$291 million to approximately US$277 million and extend the final repayment maturity from 2032 to 2043.
According to the government, the restructuring will help ease short-term debt service pressures and align Zambia’s repayment obligations with its medium-term macroeconomic and fiscal reform programme.
Speaking during the signing ceremony, Dr Musokotwane said the agreement represents a key step towards strengthening Zambia’s fiscal position and restoring long-term debt sustainability.
He noted that the revised terms would create fiscal space for continued investment in critical sectors such as infrastructure, healthcare and social development.
The minister also expressed gratitude to Charles III and the British Government for their cooperation during the negotiations, while commending technical teams from UK Export Finance and Zambia’s Ministry of Finance for their role in finalising the agreement.
The debt in question relates to financing provided through UK Export Finance for a major healthcare infrastructure programme that supported the construction of five district hospitals and 111 mini-hospitals across Zambia, aimed at expanding access to healthcare services and improving patient care capacity.
Ms Terzeon noted that the hospital infrastructure programme demonstrates the strong development partnership between the United Kingdom and Zambia, adding that the facilities have helped improve access to healthcare and strengthen the country’s public health system.
The agreement forms part of Zambia’s wider restructuring of official bilateral debt under the G20 Common Framework. Through the process, the country has now completed restructuring arrangements covering 100 percent of its official public external debt, a major step towards restoring long-term debt sustainability and rebuilding investor confidence.
The government has reaffirmed that future borrowing will continue to follow prudent fiscal policies and the Parliamentary-approved Annual Borrowing Plan, ensuring transparency and alignment with national development priorities.
Officials say the Zambia–United Kingdom agreement signals continued progress in the country’s economic reform programme while reinforcing Zambia’s commitment to responsible debt management and international cooperation.
