Eurobond Buyback To Cut Debt Cost - PwC

By Ellen Hambuba PwC Zambia Senior Partner ANDREW CHIBUYE says the government’s planned buyback of over 1.3 billion United States dollars in Eurobonds is a significant move in Zambia’s debt recovery efforts. Mr. CHIBUYE explains that the transaction forms part of the country’s broader debt restructuring programme and aims to replace costly debt with cheaper financing, reducing future debt servicing costs. Speaking to ZNBC News, Mr. CHIBUYE said Zambia’s improved economic position, stronger fiscal fundamentals, and upgraded credit rating have created the opportunity for the government to refinance part of its debt on more favourable terms. He added that the proposed deal will be backed by a 600-million-dollar facility from the African Development Bank, which is expected to carry lower interest rates than the current Eurobond obligations. Mr. CHIBUYE said the move shows growing confidence in Zambia’s economic reforms, noting that development partners would not have offered such support when the country was in default. He said the transaction sends a positive signal to international investors, confirming that Zambia is steadily rebuilding its credibility in global financial markets. Mr. CHIBUYE noted that improved access to financing will benefit not only the government but also businesses and individuals, as stronger sovereign creditworthiness often opens doors to broader investment opportunities. He concluded that ordinary citizens could benefit if savings from lower debt repayments are directed towards key areas such as education, healthcare, social programmes, and other development initiatives, supporting both improved living standards and economic growth.