Zambia’s President Hakainde Hichilema has declared that the country has restructured 92% of its external debt, a significant step in its economic recovery journey.

Addressing the 5th Session of the 13th National Assembly in Lusaka on Friday, he further highlighted that the economy grew at an average rate of 5.2% from 2021 to 2024, three times faster than the growth recorded between 2017 and 2020.

He pointed out that the external debt restructuring has opened up fiscal space to channel investments into critical sectors such as energy, mining, and infrastructure.

This achievement comes after prolonged negotiations with both bilateral and commercial creditors, designed to ease Zambia’s debt pressure and reinforce macroeconomic stability, APA News reports.

Zambia had long struggled with unsustainable debt, which had risen to more than $12 billion before the government rolled out reforms under the International Monetary Fund’s Extended Credit Facility.

Furthermore, President Hichilema pointed to the strengthening of the Kwacha and a decline in inflation, from 23.1% in January to 15% in August, as clear indicators of the country’s improving fiscal health.

To maintain momentum, the government intends to set up special economic zones in every province to stimulate local production and create jobs.

In the mining sector, the restart of operations at Mopani and Konkola Copper Mines, together with the resolution of challenges at First Quantum Minerals, has boosted copper production, one of the key pillars of Zambia’s export revenue.

In the energy sector, Hichilema admitted that ongoing loadshedding, exacerbated by drought and a generation capacity stuck at 3,700 megawatts for the past 40 years, remains a serious challenge.

He detailed planned reforms to draw private investment, such as introducing cost-reflective tariffs, ensuring open access to the national grid, and promoting independent power producers.

Several renewable energy projects are currently in progress, among them a 94-megawatt solar plant in Kitwe and a 100-megawatt facility in Chisamba, both expected to add capacity within the next seven months.

In addition, a 300-megawatt coal-fired power plant is planned at Maamba Energy in Southern Province.