Government has today signed a debt restructuring agreement with the Kingdom of Saudi Arabia under the G20 common framework for debt relief and a further debt top up of Thirty-Five Million Dollars for the completion of construction of the King Salman Bin Abdulaziz Hospital project.

Minister of Finance and National Development Situmbeko Musokotwane said the debt restructuring agreement illustrates the two countries’ shared commitment towards Zambia’s economic growth through sustainable debt management and fiscal sustainability.

Dr Situmbeko added that the additional loan agreement on the completion of the King Salman Hospital project solidifies Zambia’s and Saudi Arabia’s shared vision to enhance healthcare delivery to the people of Zambia.

The Minister said that the Hospital will not only benefit Zambians but neighbouring countries too as it is set to be a regional centre of excellence, specializing in maternal and neonatal healthcare. 

 “The bilateral debt restructuring agreement we are signing today. under the G-20 common framework for debt relief this agreement formalizes our shared commitment to restructuring Zambia’s debt, ensuring fiscal sustainability, and fostering economic growth. This bilateral agreement is a result of our constructive dialogue and collaboration, for which we deeply thank the Saudi fund for development and its leadership,” the Minister Said.

“The additional loan for the king Salman hospital project further solidifies our shared vision of improving healthcare in Zambia. This state-of-the-art hospital, nearing completion, is set to provide essential services to the Zambian people.  it will be a centre of excellence, specializing in maternal and child healthcare, and serve as a regional referral hub,” he said.

He has however clarified that the Thirty-Five million dollars loan extension was approved by parliament in 2023 as part of the 2024 budget and still falls within the Country’s debt affordability range.

And representing the Kingdom of Saudi Arabia, Saudi Fund for Development (SFD) Chief Executive Officer Sultan Al-Marshad echoed that the King Salman Hospital is not just a project but a symbol of the shared commitment to the provision of quality healthcare to the people of Zambia as it will provide job opportunities and contribute to the general improvement of the country’s health sector and economic growth.

Mr Marshad added that the signing of the agreements is a clear indication of the ongoing development partnership between the two countries and that the agreements are a beacon of hope for the people of Zambia.

The debt for the hospital construction has now been extended to One Hundred and Thirty-Five Thousand Dollars.