Zambia has cut external debt arrears by over US$400 million, reflecting progress in ongoing debt restructuring efforts.
According to the Ministry of Finance and National Planning’s quarterly debt statistical bulletin, the reduction was recorded in the fourth quarter of 2025. Latest figures show external arrears declined to about US$4.8 billion, down from over US$5.2 billion in the previous quarter.
Central government debt service arrears also dropped significantly to about US$3.5 billion, while payments owed to contractors working on government-funded projects reduced to roughly US$385 million.
The improvement follows successful restructuring agreements on selected bilateral loans and deliberate measures aimed at strengthening debt management.
The Ministry noted that the continued reduction in arrears signals progress in stabilizing public finances and easing pressure from legacy debt as government works toward long-term economic stability.
