The governments of Zambia and Israel have signed an amendment agreement relating to the restructuring of approximately $460 million in debt owed to the Middle Eastern country.
The agreement, signed at the Ministry of Finance and National Planning in Lusaka, provides for the restructuring of the outstanding obligations through to 2043.
It forms part of Zambia's broader efforts to restore debt sustainability, strengthen fiscal resilience, and support long-term economic recovery.
The debt relates to facilities supported by Israel's Foreign Trade Risks Insurance Corporation Limited, covering sectors including agriculture, defence, and healthcare.
Speaking during the signing ceremony, Minister of Finance and National Planning Situmbeko Musokotwane said the agreement demonstrates the progress Zambia continues to make in restoring fiscal discipline and rebuilding international confidence.
"Looking back to when the country defaulted on its external debt in 2020, to where we are today, we can only be proud of all the milestones achieved and the goodwill from our partners. These milestones are proof that the Government of Zambia is committed to restoring fiscal discipline and restoring debt sustainability."
Musokotwane said the restructuring arrangement would help reduce debt service pressures and create additional fiscal space for strategic investments in infrastructure, economic recovery programmes, and social sector support.
Israeli Ambassador to Zambia, Ofra Farhi, reaffirmed Israel's commitment to maintaining strong bilateral relations with Zambia.
"Today's signing reflects the strong spirit of cooperation and mutual respect that exists between Israel and Zambia. We appreciate the constructive engagement demonstrated throughout the negotiations and remain committed to supporting Zambia's efforts toward economic recovery and long-term stability."
The agreement forms part of Zambia's ongoing debt restructuring programme under the G20 Common Framework for Debt Treatment, which seeks to restore long-term debt sustainability, strengthen macroeconomic stability, and support inclusive economic growth.