Zambia says annual external debt service falls to about US$900m from 2026 after restructuring

On 28 August 2026 Zambia’s Secretary to the Treasury, Felix Nkulukusa, said the country’s debt restructuring reduces annual external debt-service payments to about US$900 million a year from 2026 (down from an estimated US$2.6 billion without the restructuring), easing near‑term fiscal pressure and creating budgetary space for priority spending.

Lower external service reduces immediate rollover and budget pressure, increasing fiscal space and the government’s ability to fund priority sectors. Conditionally, the move should exert downward pressure on sovereign credit spreads and ease reserve drains; however, continued fiscal discipline, completion of any remaining creditor agreements, and implementation risk will determine whether market perceptions and yields sustain a tightening.

Completion of remaining creditor agreements and next IMF programme review (dates and outcomes).