NEWS

Zambia is to invest millions of dollars of savings realised through the successful $1.36 billion debt buyback in projects to provide reliable and affordable electricity access as part of an innovative transaction backed by the African Development Bank Group.

In a pioneering approach to development finance, the government of Zambia used a $600 million loan from the African Development Bank Group coupled with its own resources to buy back the $1.36 billion sovereign Eurobond.

As part of savings which could have gone into future debt servicing, the Zambian government has committed to earmark $275 million, to be invested in the country’s energy sector, an approach that could be emulated by other African countries to unlock development financing.

Nkulukusa outlined the government's 15-year vision for the programme, framing it as a direct response to constraints that have long held Zambia back.

The operation aligns with the Four Cardinal Points of the African Development Bank Group, particularly the priorities of enhancing access to capital and building climate resilient infrastructure. It also complements broader efforts to expand access to affordable, dependable, and sustainable energy throughout the continent.

Zambia has made significant progress in implementing economic reforms and restoring macroeconomic stability. The transaction supports the country's commitment to strengthening public finances while investing in a stronger and more resilient electricity network that is critical to supporting growth in mining, agriculture, manufacturing, tourism and other sectors of the economy.

The African Development Bank Group remains committed to working with Zambia and its development partners to advance innovative financing solutions that promote sustainable development and improve the lives of citizens.