France And Zambia Sign Landmark Bilateral Agreement On Debt Restructuring

By Kalata News

Lusaka, December, 2024 – THE Government of the Republic of Zambia and the Government of the Republic of France have signed a landmark bilateral agreement on debt restructuring.

This agreement is a critical step in implementing the recommendations outlined in the Memorandum of Understanding (MoU) signed in October 2023 under the G20-Paris Club Common Framework for Debt Treatment beyond the Debt Service Suspension Initiative (DSSI).

The agreement was signed on behalf of Zambia by the Minister of Finance and National Planning Dr SITUMBEKO MUSOKOTWANE, MP, and on behalf of France by Mr. WILLIAM ROOS Head of Multilateral Affairs – Ministry of the Economy, Finance and Industry, who is also the Co-Chair of the Paris Club. Mr ROOS was accompanied by Ambassador of France to Zambia THOMAS ROSIGNOL and Head of Regional Economic Department for Southern Africa THIBAUT DORNON.

 

The agreement is the first to be concluded following the MoU and sets the stage for the finalization of an additional 15 agreements with other creditor countries. These agreements, currently under negotiation, aim to ensure comprehensive debt treatment that supports economic recovery efforts. This significant milestone also highlights the importance of international cooperation in tackling debt sustainability challenges faced by developing nations, such as Zambia.

Speaking at the event, Dr MUSOKOTWANE expressed the Zambian Government gratitude to the French Government, the G20, and the Paris Club for their commitment to fostering a fair and effective resolution of the country’s debt challenges. The agreement is expected to cement the provision of fiscal space required to prioritize economic recovery, social investment, and sustainable development the Minister has said.

While in France, Zambia has been admitted as the 56th member of the Organisation of Economic Cooperation and Development (OECD), Development Centre.

The country was admitted during the ongoing ninth high-level meeting of the OECD Development Centre’s Governing Board, on 9 th December 2024 in Paris, France. The OECD Development Centre has 55 members, amongst whom, only 12 are African countries.

Zambia’s delegation leader RODNEY SIKUMBA, MP, the Minister of Tourism and Arts, who is attending the event on behalf of Dr SITUMBEKO MUSOKOTWANE, MP, the Minister of Finance and National Planning, accepted the country’s admission to the prestigious institution, saying the step was a significant milestone in fostering a symbiotic correlation between policy formulation and delivery of tangible economic progress.

Mr. SIKUMBA was s accompanied to the meeting by Ministry of Finance and National Planning Acting Permanent Secretary for Planning and Administration PRUDENCE KAOMA, and officials from the Zambian Embassy in Paris, France.

“As a country, we are cognizant of the contributions that the OECD Development Centre has made towards public policy calibration and reforms in the quest to support sustainable growth aimed at reducing poverty and inequalities in developing and emerging economies, such as Zambia,” said Mr. SIKUMBA during an address to the assembly.

The Minister observed further, that the OECD Development Centre’s support to emerging and developing economies like Zambia was noteworthy and covered different areas of policy formulation extending from issues such as industrialization, resource mobilisation, and the green economy, to inequality and poverty reduction matters.

“Zambia looks forward to stronger engagement with other OECD member countries as that will assist us to thrive in the global space through better policy design, enhanced peer learning targeted at effective reform implementation, and consistent delivery of tangible economic progress at optimal cost, while achieving greater impact in collaboration with the OECD fraternity,” stated Mr. SIKUMBA, Zambia’s delegation leader to the on-going ninth high-level meeting of the OECD Development Centre’s Governing Board, in Paris, France.