The Zambian Government has unveiled a debt buyback programme, backed by a US$600 million African Development Bank (AfDB) loan.
The programme aims to reduce future repayment pressures, strengthen electricity reliability and boost investor confidence.
According to a statement issued by the Office of the Secretary to the Treasury,successful buyback would ease repayment obligations and free up fiscal space for development and public services.
The statement highlighted that by optimizing public debt management, the Republic will unlock valuable fiscal space in the national budget.
The AfDB financing is also tied to a 15‑year Grid Resilience Programme aimed at strengthening Zambia’s electricity distribution network.
Meanwhile Economic policy analyst Christopher Kang’ombe explained that government intends to repurchase the US$1.36 billion Eurobond at an estimated cost of US$1.06 billion, avoiding higher interest obligations under the 2024 restructuring deal.
“The strategy aims to prevent paying an additional US$100 million to bondholders between 2035 and 2053,” he said.
Kang’ombe further urged government to leverage strong global copper demand by increasing local mining participation.
He proposed investing US$10–12 million in exploration and converting those investments into equity stakes, a move he said would strengthen domestic investment and reduce reliance on external borrowing
The initiative is part of Zambia’s post‑restructuring debt management strategy following the completion of its sovereign debt restructuring in 2024.