ZAMBIA DEBT PROFILE

Zambia's national debt reached $25.5 billion by the end of 2023, creating a crisis that crowds out essential social spending and hinders economic development. The report identifies key drivers including excessive borrowing for unproductive infrastructure, high reliance on volatile copper exports, and significant revenue losses from tax evasion and illicit financial flows. While Zambia has sought relief through the G20 Common Framework and IMF facilities, the report argues that the current restructuring process is inefficient and that long-term stability requires domestic resource mobilisation, strengthened parliamentary oversight, and a transition toward sustainable borrowing practices.

• Zambia's national debt increased by $6.4 billion (33.42%) in 2023, reaching a total of $25.5 billion by the end of that year.
• High debt servicing costs are diverting funds from critical social sectors; in 2023, debt servicing accounted for 32% of the budget, while health and education received only 9% and 12% respectively.
• Zambia's economy is heavily dependent on copper, which accounts for up to 77% of its exports, making the country vulnerable to global price fluctuations.
• Significant revenue is lost to tax evasion and illicit financial flows, with estimates suggesting up to $3 billion annually is lost to tax avoidance and evasion by multinationals.
• The country's creditor profile has shifted from traditional multilateral and bilateral lenders to private-centric creditors, including Eurobond holders and non-Paris Club lenders like China, which has complicated debt restructuring.
• Zambia defaulted on its Eurobond debt in November 2020, becoming the first African nation to do so during the COVID-19 pandemic.
• The G20 Common Framework for debt restructuring is described as problematic and unfit for Zambia due to its narrow scope, lack of coordination, and the exclusion of some private and commercial lenders.
• Corruption and weak governance have inflated the costs of infrastructure projects and high-profile tenders, exacerbating debt distress.
• Zambia requires an estimated $50 billion annually through 2030 for climate change mitigation and adaptation, but its high external debt limits its capacity to build the necessary institutional frameworks to manage these funds.
• The Public Debt Management Act of 2022 sets a public debt limit of 65% of GDP, but this ceiling only takes effect in 2027, leaving a gap in immediate executive accountability.

APA

African Forum and Network on Debt and Development (n.d.). ZAMBIA DEBT PROFILE. https://www.afrodad.org/sites/default/files/publications/Zambia%20debt%20profile.pdf

Chicago

African Forum and Network on Debt and Development. ZAMBIA DEBT PROFILE. n.d. https://www.afrodad.org/sites/default/files/publications/Zambia%20debt%20profile.pdf.

Wikipedia

{{cite report |author=African Forum and Network on Debt and Development |title=ZAMBIA DEBT PROFILE |url=https://www.afrodad.org/sites/default/files/publications/Zambia%20debt%20profile.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{africanforumandnetworkondebtanddevelopmentndzambia, author = {{African Forum and Network on Debt and Development}}, title = {{ZAMBIA DEBT PROFILE}}, institution = {African Forum and Network on Debt and Development}, url = {https://www.afrodad.org/sites/default/files/publications/Zambia%20debt%20profile.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }