• 94% of Zambia’s debt restructuring process is completed, Musokotwane says
• Most bilateral creditors have signed or committed to debt agreements
• Talks with Afreximbank remain key to ending Zambia’s default status

Zambia has completed 94% of its debt restructuring process, Finance and National Planning Minister Situmbeko Musokotwane said during a press briefing. He noted that the country had moved from 44% to 57% in the formal signing of bilateral agreements.

In a statement published on the Ministry of Finance’s Twitter account on Tuesday, October 28, 2025, Musokotwane said each participating country had already committed through a memorandum of understanding to honor the agreed conditions. He added that only procedural steps remain, including translating the agreements into official legal documents.

ZAMBIA: Debt Restructuring ~ Understanding the Process of Signing Bilateral Agreements.

Finance & National Planning Minister Dr. Situmbeko Musokotwane, MP, states:

"When people ask why the signing of bilateral agreements under Zambia’s debt restructuring takes time, it’s… pic.twitter.com/re3wPb8Es9

— Ministry of Finance & National Planning - Zambia (@mofnpzambia) October 28, 2025

The announcement followed Treasury Secretary Felix Nkulukusa’s comments on Monday, October 27, that one-third of the parties involved are ready to take over Zambia’s debt to the African Export-Import Bank (Afreximbank), signaling potential progress after months of deadlock.

Afreximbank has refused to join the restructuring under the same conditions as other creditors, citing its preferred creditor status, which means such institutions must be repaid first and cannot be forced to reduce or delay their claims.

For over a year, Lusaka and its lenders have disagreed on whether Afreximbank should be treated like other creditors in the restructuring process. This disagreement has delayed Zambia’s official exit from default, as all creditors must align before the country can be considered regularized.

Zambia has been restructuring its public debt since defaulting on Eurobonds and accumulating arrears with bilateral and commercial creditors in 2020. The country also benefits from a $1.3 billion IMF program launched in 2022 to support economic reforms.

According to the IMF, Zambia’s public debt is considered sustainable but remains at high risk of overall and external debt distress. The country’s public and publicly guaranteed external debt stood at $21.4 billion at the end of 2024.