Domestic, external debts gulp K4.1 billion in September as Musokotwane claims Zambia’s global credibility re-established

Finance and National Planning Minister, Situmbeko Musokotwane, has announced that the Zambian government has restored its credibility with the international community by reaching a significant milestone in addressing the country’s external debt burden.

He noted that this achievement was a key step towards laying the foundation for a prosperous and sustainable future.

“We are truly building resilience for inclusive growth and improved livelihoods in a manner that ensures no one is left behind,” Musokotwane said in a statement regarding the performance of the September 2024 budget, issued by the treasury on Sunday.

As part of these efforts, the treasury announced the release of K4.1 billion in September to service both external and domestic debt, as well as settle arrears.

This move is part of a broader strategy to rebuild trust with Zambia’s creditors and improve the country’s financial standing.

The government allocated K15.9 billion for development programmes and public service delivery, a portion of which was directed towards debt servicing.

According to the treasury’s breakdown, K4.1 billion was spent on both domestic and external debt obligations, as well as clearing arrears.

Additionally, the treasury allocated K5.1 billion towards transfers, subsidies, and social benefits, while K1.9 billion was set aside for the implementation of various developmental programs and general operations.

Capital expenditure also received a boost, with the government releasing K524.5 million.

Of this amount, K279.7 million was allocated to the Rural Electrification Authority to support the expansion of electricity access in rural areas, and K200 million was directed towards ongoing road infrastructure projects.

A further K44.8 million was earmarked for infrastructure projects across several ministries, provinces, and agencies.

Musokotwane emphasized that by addressing the external debt burden and maintaining a focus on development, the government is positioning the country for long-term success.

The efforts to restore financial credibility come at a critical time as Zambia continues to navigate the impacts of the global economy and seeks to build a resilient foundation for inclusive growth.

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