Zambia, France sign bilateral debt restructuring agreement under G20 framework

Zambia and France have reportedly signed a landmark bilateral agreement on debt restructuring, marking a significant step in implementing recommendations outlined in the October 2023 Memorandum of Understanding (MoU) under the G20-Paris Club Common Framework for Debt Treatment.

The agreement paved the way for comprehensive debt treatment aimed at supporting Zambia’s economic recovery, according to a statement issued by Secretary to the Treasury, Felix Nkulukusa, on Sunday.

Read more: Debt restructuring boosts confidence in Zambian economy —Sinda

Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, and France’s Head of Multilateral Affairs at the Ministry of Economy, Finance, and Industry, Mr. William Roos, signed the agreement on behalf of their respective governments.

According to Nkulukusa, the bilateral deal was the first of its kind following the MoU and sets the stage for negotiations with 15 additional creditor countries.

Once concluded, these agreements would address Zambia’s debt sustainability challenges, enhancing fiscal space for economic and social investments.

Musokotwane expressed gratitude to France, the G20, and the Paris Club for their commitment to resolving Zambia’s debt issues, noting that the agreement underscores the importance of international cooperation in addressing challenges faced by developing nations.

French Ambassador to Zambia, Thomas Rosignol, and Head of Regional Economic Department for Southern Africa, Thibaut Dornon, accompanied Roos during the signing ceremony.

Roos said, “This agreement reflects our shared commitment to fostering economic resilience in Zambia and advancing the principles of fairness and inclusivity under the G20 framework.”

The agreement is expected to strengthen Zambia’s efforts toward economic recovery, social development, and sustainable growth.

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