Zambia has successfully reached an agreement to restructure its debt of over $6 billion owed to various governments, marking a significant step towards its economic recovery, according to President Hakainde Hichilema.

While the deal with other governments is seen as a milestone, President Hichilema emphasized that further efforts are needed to reach a separate agreement with private creditors.

During the Covid-19 pandemic, Zambia became the first country to default on its debt, with a significant portion owed to China.

The debt restructuring agreement was announced during a global finance summit held in Paris, where there were also calls for a comprehensive reform of the international finance system to support developing nations and address the challenges posed by climate change.