PwC warns Zambia’s debt still a major strain despite reforms

PricewaterhouseCoopers (PwC) Country Senior Partner Andrew Chibuye has warned that Zambia’s debt remains a serious challenge despite reforms and growing revenues, stressing that repayment obligations continue to consume a significant share of national resources.

Speaking at the 2026 PwC post-budget meeting in Lusaka at Intrencontinental hotel on Tuesday, Chibuye noted that Zambia’s reliance on foreign financing had sharply declined—from 42–52 percent of the national budget in previous years to just 12–10 percent today.

He however, noted that domestic financing has shown little movement.

“Before the debt restructuring, domestic financing stood at 28 percent. Today, even with a growing budget and rising revenues, we are only seeing 23 to 25 percent being covered domestically. That tells you there is something in the domestic market that needs urgent attention,” he said.

Chibuye credited reforms in the energy and mining sectors for sustaining production and industrial growth in the face of persistent challenges.

Read more: Zambia still classified in default despite 94% debt restructuring, says Treasury Secretary, Nkulukusa

“In energy, reforms have enabled growth even in difficult circumstances. The mining sector will tell you how critical these measures have been in keeping production running,” he observed.

Yet, he cautioned that debt repayments remain a major strain.

“In this year’s budget, K52 billion has been allocated for debt servicing—covering maturing obligations and other commitments. That amounts to 21 percent of total expenditure and 29 percent of all domestic revenues Zambia is collecting,” he explained.

He further stressed that with numerous official and commercial creditors, particularly in China, still on the books, Zambia cannot afford complacency.

Meanwhile, Finance and National Planning Minister, Situmbeko Musokotwane, revealed that Government had successfully restructured 94 percent of the country’s external debt, a step he said had strengthened investor confidence.

“In the face of fiscal limitations, the 2026 budget strikes a balance in addressing Zambia’s development needs. It aims for a prosperous and equitable future while inviting dialogue on its effectiveness and strategies to drive economic growth,” Musokotwane said in remarks delivered on his behalf by Budget Office representative Kayula Chimfwembe.

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