Zambia and Saudi Arabia Ink Agreements to Boost Healthcare and Economic Growth
The Zambian Government has entered into a debt restructuring agreement with the Kingdom of Saudi Arabia under the G20 Common Framework for Debt Relief. Additionally, a $35 million loan extension has been secured to finalize the construction of the King Salman Bin Abdulaziz Hospital.
Finance and National Development Minister, Dr. Situmbeko Musokotwane, stated that the agreement reflects the two nations’ dedication to Zambia’s economic stability through effective debt management and financial prudence.
Dr. Musokotwane emphasized that the supplementary funding for the King Salman Hospital highlights the mutual aspiration to elevate healthcare services. The facility, nearing completion, will serve as a regional hub specializing in maternal and neonatal health, benefiting both Zambians and neighboring countries.
“This bilateral agreement under the G20 framework formalizes our shared resolve to ensure Zambia’s debt sustainability while fostering economic progress. We are grateful for the cooperation with the Saudi Fund for Development and its leadership,” he noted.
He added, “The additional funding for the King Salman Hospital project strengthens our commitment to enhancing healthcare infrastructure. Once operational, this state-of-the-art hospital will stand as a center of excellence for maternal and child health, serving as a regional referral facility.”
Dr. Musokotwane clarified that the $35 million loan was approved by Parliament in 2023 as part of the 2024 national budget and aligns with the country’s debt capacity.
Speaking on behalf of Saudi Arabia, Sultan Al-Marshad, CEO of the Saudi Fund for Development (SFD), said the King Salman Hospital symbolizes the commitment to delivering quality healthcare to Zambians. He also noted that the project would generate employment and significantly enhance Zambia’s health sector and economic growth.
Mr. Al-Marshad further emphasized that the agreements signify the deepening partnership between Zambia and Saudi Arabia, serving as a beacon of hope for the Zambian people.
With the new funding, the total debt allocated for the hospital project has increased to $135 million.