France And Zambia Sign Landmark Bilateral Agreement On Debt Restructuring

In a significant step towards resolving Zambia’s debt challenges, the Government of Zambia and the Government of France have signed a landmark bilateral agreement on debt restructuring. The agreement stems from the recommendations laid out in the Memorandum of Understanding (MoU) signed in October 2023 under the G20-Paris Club Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative (DSSI).

Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, signed the agreement on behalf of Zambia. Representing France was Mr. William Roos, Head of Multilateral Affairs at the Ministry of Economy, Finance and Industry, who also serves as Co-Chair of the Paris Club.

This historic agreement marks the first concluded under the October MoU, paving the way for the finalization of an additional 15 agreements with other creditor nations. These pending agreements, currently under negotiation, are crucial for delivering comprehensive debt treatment designed to bolster Zambia’s economic recovery efforts.

Dr. Musokotwane hailed the agreement as a vital step in addressing Zambia’s debt sustainability challenges, underscoring its importance in providing the fiscal space needed to prioritize economic recovery, social investments, and sustainable development initiatives. He expressed Zambia’s gratitude to the French Government, the G20, and the Paris Club for their commitment to a fair and effective resolution of the country’s financial difficulties.

“This agreement is a testament to the power of international cooperation in tackling the debt sustainability challenges faced by developing nations,” Dr. Musokotwane stated.

Mr. Roos highlighted France’s commitment to fostering collaboration and ensuring equitable outcomes for Zambia. Accompanying him at the signing ceremony were France’s Ambassador to Zambia, Mr. Thomas Rosignol, and Mr. Thibaut Dornon, Head of the Regional Economic Department for Southern Africa.