A blog by Dr Mohamed Z M Aazim, Debt Adviser at the Commonwealth Secretariat.
In June 2026, Zambia completed a debt management operation that drew international attention. Following its 2024 debt restructuring, the country launched a buyback of a US$1.36 billion bond maturing in 2053. It replaced part of that commercial debt with concessional financing from the African Development Bank.
What interests me about this operation is how Zambia sought to reduce its future debt costs while supporting financial stability and national development.
Why did Zambia act?
Zambia’s debt challenges are well documented. After defaulting on its external debt in 2020, it became one of the first countries to complete a debt treatment under the G20…