Zambia and Israel Sign US$460 Million Debt Restructuring Agreement

Zambia and Israel have signed a US$460 million debt restructuring agreement aimed at supporting fiscal stability and accelerating the country's economic recovery. Under the terms of the deal, Zambia's outstanding obligations to Israel will be restructured through to 2043.

The debt relates to facilities backed by Israel's Foreign Trade Risks Insurance Corporation Limited (ASHRA), covering sectors including agriculture, defence, and healthcare.

Speaking at the signing ceremony, Finance Minister Dr Situmbeko Musokotwane said the agreement reflects the steady progress Zambia continues to make in restoring fiscal discipline and rebuilding international confidence following the country's external debt default in 2020. He added that the restructuring will ease debt service pressures and free up additional fiscal space for strategic investments in infrastructure, economic recovery programmes, and the social sector.

Dr Musokotwane extended his thanks to the Government of Israel and Prime Minister Benjamin Netanyahu for the cooperation, patience, and constructive engagement shown throughout the process, and for the collaborative negotiations that brought the agreement to a successful conclusion.

Israeli Ambassador to Zambia, Ofra Farhi, reaffirmed Israel's commitment to maintaining strong bilateral relations with Zambia and praised the Zambian Government for its transparent and constructive approach during the restructuring talks.

The agreement forms part of Zambia's wider 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.