Zambia’s external debt obligations have declined by five percent to US$15.35 billion as of the end of June 2026, according to the Lusaka Times. Finance and National Planning Minister Dr Situmbeko Musokotwane presented these figures in a ministerial statement to Parliament, noting that the total central government debt reached US$30.89 billion, with the domestic portion accounting for US$15.54 billion. The reduction in external liabilities is attributed to a liability management operation conducted in the first half of 2026, which supported a significant Eurobond buyback, alongside a slowdown in new external debt disbursements.
The Lusaka Times reported that the government repurchased approximately US$1.36 billion of Bond B in May 2026, a bond originally scheduled to mature in 2053. This transaction generated estimated savings of US$275 million, which Dr Musokotwane said have been allocated to the Energy Grid Resilience Programme to improve the reliability of the country’s electricity network. The minister described the buyback as evidence that prudent debt management can facilitate critical infrastructure investment while reducing future financial pressures. A special report detailing the financing and impact of this transaction is scheduled to be submitted to Parliament.
Simultaneously, the International Monetary Fund’s executive board is set to review Zambia’s successor programme at a meeting next month. This 36-month Extended Credit Facility arrangement is valued at US$1.46 billion and is designed to provide a framework for macroeconomic and fiscal reforms. Dr Musokotwane stated that the funding would be divided evenly between balance-of-payments assistance and budgetary support, aiming to translate stability into growth and private investment in line with the Grow Zambia Agenda.
At the Treasury, Secretary to the Treasury Mr Felix Nkulukusa indicated that the debt restructuring process is moving from negotiation to active repayment. He reported that approximately 81 percent of the legal documentation for restructured debt has been completed. A key remaining item is a US$312 million deal with RTD, which has been sent to the official creditor committee under the G20 Common Framework for assessment. Mr Nkulukusa noted that approval of this agreement would bring the restructured debt completion rate to around 98 percent. The Lusaka Times highlighted that Zambia’s debt-to-GDP ratio has dropped from roughly 129 percent in 2021 to approximately 91 percent in 2025, with the government targeting a maximum of 65 percent to ease pressure on public finances.