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Zambia has struck two significant agreements with Saudi Arabia: an additional loan for the King Salman Hospital project and a bilateral debt restructuring deal.
These agreements are set to enhance Zambia’s healthcare infrastructure and address ongoing debt sustainability concerns.
The King Salman Hospital, which is nearing completion, will specialize in maternal and child healthcare, providing critical services to the Zambian population.
Finance and National Planning Minister, Dr. Situmbeko Musokotwane, highlighted the project’s importance during a signing ceremony at the Ministry of Finance in Lusaka on Thursday.
“This project underscores Saudi Arabia’s invaluable contributions to Zambia’s health sector and solidifies our shared vision of improving healthcare in Zambia,” Musokotwane said.
The newly signed loan agreement will bring the total Saudi contribution to the King Salman Bin Abdulaziz Hospital project to $135 million.
Sultan Al-Marshad, Chief Executive Officer of the Saudi Fund for Development (SFD), emphasized the significance of the hospital as a symbol of progress for Zambia.
“It is a pleasure to be here today in the beautiful Republic of Zambia. This occasion reflects the strength of our ongoing development partnership as we sign an additional $35 million concessional loan, bringing the Saudi Fund for Development’s total contribution to $135 million to finance the construction of the King Salman Bin Abdulaziz Hospital.
“This vital project stands as a beacon of hope and progress for the people of Zambia,” Al-Marshad said.
The hospital will feature state-of-the-art facilities, including 800 beds dedicated to women and children, alongside advanced medical equipment and specialized furniture.
Al-Marshad also highlighted the importance of training programme included in the project.
“Moreover, the project includes training programmes aimed at enhancing the skills of medical and technical staff, ensuring the long-term sustainability of the hospital’s operations and fostering a new generation of healthcare professionals,” he added.
This initiative is part of Saudi Arabia’s broader commitment to improving healthcare systems in developing nations, and it promises to create jobs, contribute to economic growth, and strengthen Zambia’s healthcare sector.
Alongside the healthcare loan, Zambia and Saudi Arabia formalized a debt restructuring deal.
Musokotwane praised this step, stating that it reflected Zambia’s efforts to address its financial challenges with the help of international partners.
“The debt restructuring journey has been challenging but rewarding. It reflects Zambia’s determination to tackle its financial hurdles with the unwavering support of partners like the Saudi Fund for Development,” he said.
He described the deal as a symbol of trust and partnership, signaling confidence to other creditors as Zambia works towards fiscal stability.
These agreements may have marked a milestone in Zambia’s relationship with Saudi Arabia, strengthening ties between the two nations while advancing both healthcare and economic goals.
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