Economist Kelvin Chisanga has noted Zambia’s annual debt servicing has fallen from US$2.3 billion to about US$900 million, describing it as a welcome development for public finances.
Chisanga emphasised that the fiscal space created should be channelled into healthcare, education, infrastructure and social protection.
He observed that the government’s shift from costly commercial borrowing to concessional financing marks a necessary and positive change.
The Economist highlighted that lower interest loans will ease the long-term cost of borrowing and strengthen fiscal stability.
He stressed that despite the relief, Zambia’s overall debt burden remains considerable and requires vigilant management.
Chisanga underscored that strict fiscal discipline and transparency in public spending are essential to safeguard progress.
The Economist warned that the restructuring offers an opportunity to reset fiscal priorities only if borrowing aligns with sustainable development goals.
