The Government of Zambia has formalized a debt restructuring agreement with the Kingdom of Saudi Arabia under the G20 Common Framework for Debt Relief. Alongside this, a supplementary loan of $35 million has been secured to complete the King Salman Bin Abdulaziz Hospital project.
Minister of Finance and National Development, Dr. Situmbeko Musokotwane, emphasized that the agreement showcases the commitment of both nations to Zambia’s economic growth through prudent debt management and fiscal sustainability.
Dr. Musokotwane highlighted that the additional funding for the King Salman Hospital underscores a shared vision to improve healthcare services in Zambia. The state-of-the-art facility, nearing completion, is set to be a regional hub specializing in maternal and neonatal healthcare, benefiting not only Zambians but also neighboring countries.
“This bilateral debt restructuring agreement under the G20 framework formalizes our collective efforts toward Zambia’s debt sustainability and economic progress. We appreciate the collaboration with the Saudi Fund for Development and their leadership,” he said.
He added, “The additional loan for the King Salman Hospital project reaffirms our shared dedication to enhancing Zambia’s healthcare infrastructure. Once completed, the hospital will stand as a center of excellence for maternal and child health services and a regional referral point.”
Dr. Musokotwane clarified that the $35 million loan extension was approved by Parliament in 2023 as part of the 2024 budget, remaining within Zambia’s debt affordability parameters.
Representing Saudi Arabia, the CEO of the Saudi Fund for Development (SFD), Sultan Al-Marshad, described the King Salman Hospital as a symbol of the mutual commitment to providing quality healthcare in Zambia. He noted that the project would create jobs and significantly contribute to the improvement of Zambia’s healthcare system and economic growth.
Mr. Al-Marshad also underscored that the agreements mark a continuing partnership between the two nations and represent hope for Zambia’s development.
With the additional funding, the total debt for the hospital construction now stands at $135 million.
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A loan to construct a hospital named after a lender; am I missing something here?
Hate to break it to my fellow readers but there is no free lunch in this world! Saudi’s are following in the footsteps of their smaller but more nimble regional ally UAE, in securing a foothold over Zambia’s mineral wealth. There has been a scramble across Africa; with UAE, Qatar and Saudi Arabia buying up fertile land and mineral deposits. Needles to say, State backed entities have not qualms about middlemen and commissions to our politicians to secure their access. The restructuring is a drop in the ocean of what they expect to make out of Zambia in the very near term.
Honestly our leaders are elected into office to be borrowing from other countries? Is anything missing?
What modern hospital can you construct with $135 million?
Three years of New dawn government which has been boasting about debt restructuring
But can Zambians see any benefits?
Isn’t that the hospital near Apex University which PF left hanging after chewing the balance?
I was also wondering ?
Unfortunately you mention PF which automatically gets a thumbs down
soon I presume it will be upnd to get the same response :))
Typical !! Live for today without any regard to next administrations who will have to answer to the creditors
Does anyone know what our National Debt stands at now ???
Burkina Faso a very poor country mobilized money internationally and raised enough to pay off all the external debts… IMF wanted to give them some money which would enable them to pay off part of the existing debts…. they called debt restructuring they refused….. imagine this country is being lead by a young soldier whose education cannot match that of anyone of our leaders.
Let’s not compare Apples with Pears
Seeing God is always being brought up by politicians and local gentry
Surely we have learnt “We reap what we Sow”
Dr. Situmbeko Musokotwane’s remarks highlight a commitment to fiscal sustainability, yet one must ponder the implications of relying on foreign loans. This approach, often seen as the “low-hanging fruit,” may provide immediate relief but can also tether a nation to external influences that may compromise its sovereign decision-making in the long run.
The recent debt restructuring agreement between Zambia and the Kingdom of Saudi Arabia, facilitated through the G20 Common Framework for Debt Relief, raises significant questions about the nature of sovereignty in the context of international finance. It is indeed intriguing to consider how the exercise of national sovereignty can become selective, particularly when a nation’s economic decisions are scrutinized or criticized.