PwC: Eurobond Buyback Strengthens Zambia’s Financial Recovery

Andrew Chibuye, PwC Zambia Senior Partner said the government’s planned buyback of over 1.3 billion US dollars in Eurobonds is a key step towards Zambia’s debt recovery efforts.

Mr Chibuye explained that the buyback is part of the country’s wider debt restructuring programme to reduce future debt servicing costs by replacing costly debt with cheaper financing.

Speaking to ZNBC, Mr Chibuye affirmed that Zambia’s strengthened economy, fiscal fundamentals and improved credit rating have enabled the government to refinance part of its debt on better terms.

The proposed deal will be supported by a US$600 million facility from the African Development Bank, which is expected to attract lower interest rates than Zambia's existing Eurobond obligations.

Mr Chibuye added that the deal reflects growing confidence in Zambia's economic reforms. He said the transaction sends a positive message to international investors, demonstrating that Zambia is steadily restoring its credibility in global financial markets.

Mr Chibuye said that improved access to finance would benefit businesses and individuals in the private sector, as well as the Government.

This would create wider investment opportunities and allows ordinary citizens to benefit via savings from lower debt repayments. Mr Chibuye added that these savings could improve living standards and economic growth if directed towards development initiatives such as education, healthcare and social programmes.

The development is expected to strengthen the country's financial resilience and attract further investment.