Expert welcomes Zambia's signing of debt restructuring deals with Chinese lenders

LUSAKA -- An economist on Wednesday welcomed Zambia's signing of bilateral debt restructuring agreements covering part of its obligations to Chinese lenders.

Finance and National Planning Minister Situmbeko Musokotwane announced on Tuesday that the Zambian government inked the agreements with several Chinese lenders, including the Export-Import Bank of China.

Economist Kelvin Chisanga said the development signals Zambia's commitment to responsible debt management, especially at a time when the economy needs recovery.

He said that the agreements are likely to boost investor confidence and could serve as a model for other African countries. "While challenges still remain, the agreements mark a positive step toward long-term economic stability and sustainable growth," said Chisanga.

According to the expert, the debt restructuring would provide Zambia with fiscal relief, enabling the government to prioritize investment in infrastructure, healthcare, education, and other critical sectors.

Zambia also has bilateral debt restructuring agreements with India, France and Saudi Arabia. In 2023, Zambia signed a memorandum of understanding with its official creditors to restructure about $6.3 billion of its debt.