Hichilema Pushes Forward on Debt Relief and Economic Empowerment

President Hakainde Hichilema has reaffirmed his administration's commitment to economic recovery, announcing that the Government is advancing phase two of Zambia's landmark debt restructuring programme, to reduce annual debt servicing payments to below 900 million dollars.

Speaking during the swearing-in ceremony of Health Minister Alex Katakwe, Small and Medium Enterprise Development Minister Malama Mufunelo, and Muchinga Province Permanent Secretary Tuesday Bwalya, President Hichilema said the restructuring had already created significant fiscal space, enabling Government to redirect resources into priority sectors.

The results are beginning to show. Funding for SME development has surged from just 20 million kwacha in 2021 to 515 million kwacha, a more than twentyfold increase that reflects the administration's recognition of small businesses as engines of grassroots economic growth.

Zambia concluded its external debt restructuring agreement with official creditors in 2023, following years of negotiations under the G20 Common Framework. The country defaulted on its Eurobond obligations in 2020 under the weight of over 17 billion dollars in total debt. The successful completion of phase one was widely regarded as a turning point for investor confidence, with the IMF's Extended Credit Facility programme providing a further stabilising framework.

President Hichilema also used the occasion to issue firm directives to his new Health Minister, demanding that medicines and medical equipment held in ZAMMSA warehouses be distributed urgently to clinics and health centres across the country — including in the most remote communities. He stressed that availability of medicines must translate into meaningful access to diagnostics and treatment for all Zambians.

For ordinary Zambians, these developments carry real consequences. Greater fiscal headroom means more money for schools, hospitals, and enterprise support. Combined with a transparent funding system for SMEs and a reinvigorated push on healthcare delivery, President Hichilema's agenda is increasingly focused on ensuring that Zambia's economic recovery is felt not only in Lusaka but in every province and village across the country.