Zambia is approaching the final stages of its debt restructuring process, paving the way for renewed access to foreign financing.
A French diplomatic source revealed Tuesday that the negotiations are nearing conclusion, marking a significant step forward for the African nation.
France and China co-chair the public creditor committee overseeing Zambia’s debt under the G20 Common Framework for Debt Treatment.
Earlier this month, France became the first country to sign a bilateral restructuring agreement with Zambia, solidifying progress.
Zambia, Africa’s leading copper producer, was the first country to default on its external debt during the Covid-19 pandemic.
The nation, home to nearly 20 million people, defaulted on $18.6 billion of external debt in 2020 amid economic strain.
In 2023, Zambia secured an agreement in principle with official creditors to restructure $6.3 billion of its total debt.
France, though holding only $100 million of the official debt, described its December 8 agreement as a catalyst for further cooperation.
This year, Zambia also finalized terms to restructure over $3.5 billion in private sector debt through the G20 framework.
The restructuring brought together the Paris Club of Western creditors and G20 nations like China, a key non-Paris Club member.
The process faced hurdles, but discussions with China’s Export-Import Bank were notably more constructive this year, sources noted.
“It proves multilateralism works — it is credible, efficient, and fair,” said the French diplomatic source, emphasizing cooperation’s success.
