• This is key in concluding MoUs with each individual creditor in terms of debt restructuring.
• Zambia will now be able to access the external credit facility disbursement.
• This has potential to boost investor confidence.

An Economist says Zambia should pursue that it concludes signing of Memoranda of Understanding with each bilateral creditors as soon as possible, following formalization of the Official Creditors Committee agreement.
Speaking in an interview with Money FM News, Emmanuel Zulu said formalization of the Official Creditors Committee agreement is key in concluding MoUs with each individual creditor in terms of debt restructuring.
Mr. Zulu noted that this is also key to moving forward to conclude negotiations with commercial creditors, as it was difficult for government to make progress with regards to commercial credit because the country had not concluded with its bilateral creditors.
“It’s a step in the right direction that Zambia and its Official Creditors have formally signed an agreement that cements the agreement in principle that was made to restructure the US$6.8 billion, this is key in concluding MoUs with each individual creditor in the sense that now they will commit to whatever relief they will give Zambia within the same framework.”
“It was difficult for the government to make progress with regards to commercial credit because we had not concluded with our bilateral creditors. We assume that it will be comparable terms so I think even the commercial creditors we are waiting to see what will come out of this deal. But now that there is commitment, Zambia should pursue that it concludes signing of MoUs with each bilateral creditors as soon as possible,” Mr. Zulu stated.
He added that Zambia will now be able to access the external credit facility disbursement that was tied to getting a formal agreement with official creditors, expressing confidence that the move will also help with 2024 national budget funding because it is one of the sources of income.
“The positive also comes to the effect that Zambia will now be able to access the external credit facility disbursement that was tied to getting a formal agreement with official creditors. We are certain that this will also help with 2024 national budget funding because it is one of the sources of income,” he said.
Mr. Zulu further stated that signing of a Memorandum of Understanding with Official Creditors Committee has potential to boost investor confidence because every investor has been looking forward to see how Zambia will make progress regarding the debt restructuring deal.

“We must applaud the Government for the effort and consistency on this conclusion despite the challenges that we might have faced. We hope that the conclusion will be made even with our commercial creditors before 2024 starts because we know that according to our 2024 budget, it appears that there is an assumption that we will not pay as much debt service as we should have paid. So we must not delay we should ensure that we get that relief as soon as possible,” he added.
On Saturday, Zambia agreed a Memorandum of Understanding with Official Creditors Committee, on the comprehensive debt treatment agreed in June 2023, paving way for completion of the restructuring process.

And Minister of Finance and National Planning, Dr. Situmbeko Musokotwane is hopeful that the formalization of the Official Creditors Committee agreement will further support the progress Zambia is making in achieving a comparable agreement with its private creditors to resolve the debt overhang.

Dr. Musokotwane said in a statement that once completed, debt restructuring will free up resources vital for government to invest in development agenda such as investment in human capital and job generation to reinvigorate the economy and create opportunities for the people.