ZAMBIA & ISRAEL SIGN US$460 MILLION DEBT RESTRUCTURING AGREEMENT TO SUPPORT FISCAL STABILITY & ECONOMIC RECOVERY
The Government of the Republic of Zambia and the Government of Israel have signed an Amendment Agreement relating to the restructuring of approximately US$460 million in debt owed to the Government of Israel, marking another major milestone in Zambia’s external debt restructuring process.
The agreement, signed at the Ministry of Finance and National Planning in Lusaka, provides for the restructuring of the outstanding obligations through to 2043 and forms part of Zambia’s broader efforts to restore debt sustainability, strengthen fiscal resilience, and support long-term economic recovery.
The debt relates to facilities supported by Israel’s Foreign Trade Risks Insurance Corporation Limited (ASHRA), covering sectors including agriculture, defence, and healthcare.
Speaking during the signing ceremony, Minister of Finance and National Planning Dr. SITUMBEKO MUSOKOTWANE, MP, said the agreement demonstrates the progress Zambia continues to make in restoring fiscal discipline and rebuilding international confidence following the country’s external debt default in 2020.
“Looking back to when the country defaulted on its external debt in 2020, to where we are today, we can only be proud of all the milestones achieved and the goodwill from our partners. These milestones are proof that the Government of Zambia is committed to restoring fiscal discipline and restoring debt sustainability,” Dr. MUSOKOTWANE said.
The Minister thanked the Government of Israel for its cooperation, patience, and constructive engagement throughout the restructuring process, while also commending officials from both Governments for the collaborative negotiations that led to the successful conclusion of the agreement.
Dr. MUSOKOTWANE said the restructuring arrangement would help reduce debt service pressures and create additional fiscal space for strategic investments in infrastructure, economic recovery programmes, and social sector support.
“The execution of this amendment agreement with the Government of Israel provides relief from debt service pressures that we would have otherwise faced outside the restructuring process, but also gives the Government of Zambia much-needed fiscal space to undertake critical investments in infrastructure and social sector protection,” he said.
Israeli Ambassador to Zambia, Ms. OFRA FARHI, reaffirmed Israel’s commitment to maintaining strong bilateral relations with Zambia and commended the Zambian Government for its continued commitment to transparent and constructive engagement during the restructuring process.
“Today’s signing reflects the strong spirit of cooperation and mutual respect that exists between Israel and Zambia. We appreciate the constructive engagement demonstrated throughout the negotiations and remain committed to supporting Zambia’s efforts toward economic recovery and long-term stability,” Ambassador FARHI said.
The Minister further reaffirmed Government’s commitment to honouring its obligations under the newly executed agreement and maintaining constructive relationships with all creditors and cooperating partners.
The agreement forms part of Zambia’s ongoing debt restructuring programme under the G20 Common Framework for Debt Treatment, which seeks to restore long-term debt sustainability, strengthen macroeconomic stability, and support inclusive economic growth.
The Minister of Finance and National Planning reiterated that prudent debt management, fiscal discipline, transparency, and continued engagement with international partners remain central pillars of Zambia’s economic reform programme as the country transitions from stabilization toward stronger, productivity-driven growth and job creation.
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