President Hakainde Hichilema has announced that Zambia has successfully restructured 92 percent of its external debt, marking a major milestone in the country’s economic recovery efforts.
Speaking during the opening of the 5th Session of the 13th National Assembly in Lusaka on Friday, Hichilema also revealed that Zambia’s economy has averaged 5.2 percent growth between 2021 and 2024 – three times higher than the rate recorded between 2017 and 2020.
He noted that the restructuring of the external debt has created fiscal space for investment in key sectors, including energy, mining and infrastructure.
The debt restructuring followed years of negotiations with bilateral and commercial creditors, aimed at easing Zambia’s debt burden and restoring macroeconomic stability.
The country had been grappling with unsustainable debt levels, which peaked at over $12 billion before the government introduced reforms under the Extended Credit Facility from the International Monetary Fund.
Hichilema credited the rebound of the Zambian Kwacha and a slowdown in inflation –from 23.1 percent in January to 15 percent in August – as signs of improving fiscal health.
To sustain growth, the government plans to establish special economic centres in all provinces, aimed at boosting local production and job creation.
In mining, the revival of Mopani and Konkola Copper Mines, along with the resolution of issues at First Quantum Minerals, has contributed to increased copper output – an essential driver of Zambia’s export earnings.
In the energy sector, Hichilema acknowledged the impact of persistent loadshedding, worsened by drought and stagnant generation capacity, which has remained at 3,700 megawatts for four decades.
He outlined reforms to attract private investment in the energy sector, including cost-reflective tariffs, open access to the grid and support for independent power producers.
Several solar projects are underway, including a 94-megawatt plant in Kitwe and a 100-megawatt facility in Chisamba, with additional capacity expected within seven months.
A 300-megawatt coal power plant is also planned at Maamba Energy in Southern Province.
JN/APA