Zambia Refinances Second Eurobond, Cuts Debt Costs

Zambia has successfully refinanced its second Eurobond, a move set to lower the country's debt servicing costs and release vital resources for development.

President Hakainde Hichilema said Government had secured cheaper financing to buy out the more expensive Eurobond B, reducing annual debt obligations in the process. He hailed the refinancing as another milestone in Zambia's wider debt restructuring programme, which seeks to restore fiscal sustainability and open up space for economic growth.

The scale of the turnaround is striking. Before restructuring, the President explained, Zambia was spending roughly US$2.3 billion each year servicing its debt. Following negotiations with creditors, that figure has fallen to around US$900 million, delivering savings of approximately US$1.4 billion annually.

Crucially, those freed-up resources are now being channelled into programmes that touch ordinary lives. Among them are free education and a dramatic expansion of the Constituency Development Fund, which has grown from K1.6 million to K40 million per constituency each year. The fund is supporting investment in classrooms, desks, teacher recruitment, water supply and sanitation facilities across the country.

President Hichilema reaffirmed his Government's commitment to accelerating economic reforms, completing debt restructuring and driving development initiatives designed to improve the lives of Zambians.

He also pointed to a further sign of recovery, announcing that the Kwacha has been ranked the world's best-performing currency, a reflection, he said, of the progress made in stabilising the economy through sustained reform and prudent fiscal management.