Zambia to expand electricity access using debt savings from landmark deal

Zambia to expand electricity access using debt savings from landmark deal The Government of the Republic Zambia will now channel significant resources into strengthening the national power grid, enabling more reliable electricity supply and new connections to households and businesses, including in areas that previously faced barriers due to weak infrastructure. This outcome has been achieved through what officials and partners describe as the "world’s first sovereign debt-for-energy swap", also called Africa’s first debt-for-energy conversion. In June 2026, Zambia successfully bought back its US$1.365 billion Eurobond (Fixed Rate Step-Up Amortizing Notes due 2053) with near-unanimous bondholder support (97.85%). The repurchase was funded by a US$600 million concessional loan from the African Development Bank plus government resources. The bonds were due for a sharp interest rate increase from 0.5% to 7.5% later in 2026. By retiring them early at a discounted price, the country generated around $275 million in savings over 15 years. These savings are legally ring-fenced, they cannot be used for general spending and are dedicated entirely to a new 15-year National Grid Resilience Programme. The programme focuses on modernising transmission and distribution networks, reducing technical losses, removing bottlenecks, improving reliability, and making it easier to integrate more renewable energy. Implementation is coordinated by GreenCo Power Services and overseen by a new entity, ZamGridCo, with a board that includes private sector representatives for greater transparency and efficiency.