Government Reaches Debt Deal with Saudi Arabia, Secures Hospital Funding

The government has finalised a debt restructuring agreement with the Kingdom of Saudi Arabia under the G20 Common Framework for Debt Relief, with more than $130 million rescheduled to be paid over a longer timeframe.  

At the same time, the government has secured an additional $35 million from Saudi Arabia to complete the construction of the King Salman Bin Abdulaziz Hospital, which will provide state-of-art treatment and 800 beds specialised for women and children.

Finance Minister Situmbeko Musokotwane has clarified that this additional $35 million loan extension had already been approved by Parliament as part of the 2024 national budget and fits within the country’s debt affordability parameters.

“This bilateral debt restructuring agreement under the G20 framework formalizes our collective efforts toward Zambia’s debt sustainability and economic progress. We appreciate the collaboration with the Saudi Fund for Development and their leadership,” said Musokotwane.

“The additional loan for the King Salman Hospital project reaffirms our shared dedication to enhancing Zambia’s healthcare infrastructure. Once completed, the hospital will stand as a center of excellence for maternal and child health services and a regional referral point,” he added.

The CEO of the Saudi Fund for Development, Sultan Al-Marshad, described the hospital as a symbol of mutual commitment to providing quality healthcare in Zambia. He also noted that the project would create jobs and significantly contribute to the improvement of Zambia’s healthcare system and economic growth.