Sovereign Debt

Zambia Agrees Historic $3.5 billion Debt Restructure Deal with Private Creditors.

Africa Finance Review

Mar 26, 2024 — 1 min read

Zambia has taken significant steps to improve its debt with a new $3.5 billion debt restructuring deal with its Eurobond holders.

Why is this important: Zambia, Africa's largest copper producer, defaulted on its $18.6 billion external debt in 2020 and has since failed to reach an agreement with its creditors. According to President Hakainde Hichilema, most of its creditors have signed the new deal under the G20 Common Framework. The East African country signed a memorandum of understanding in 2022 to restructure its debt, but the agreement fell through due to disagreements between its Chinese and Western creditors.

The bottom line: The new debt restructuring deal is a significant step for Zambia, as careful implementation will enable it to enter the international debt markets, which other African countries are now leveraging as support for their economies. The agreement offers improved repayment conditions as the country goes through its economic reforms, with the view to making higher repayments as its debt position improves along with its economy.

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Ecobank Repays $500Million 5-Year Eurobond Debt.

Egypt Receives $820 Million From IMF's Extended Fund Facility (EFF) Deal.

Kenya: The Rise of Rutonomics

Ghana Yet To Restructure $13 Billion Debt with International Bondholders