Zambia: US$400m set aside for road construction
Out of the US$1.25bn Eurobond issue, US$400m has been allocated for road construction in Zambia in a bid to boost connectivity in urban and rural areas.
Deputy Minister for Finance, Christopher Mvunga noted that US $268m will go into domestic debt swap and clearance while US $40m will be used for maintaining canals and purchasing maritime equipment.
US $45.2m and US $20.3m of the Eurobond would be spent on developments in the education and health sectors while US $20m will be spent on water and sanitation projects.
He indicated that the repayment of the Eurobond would be done in three installments from July 2025, 2026 and July 2027.
In order to help the Government of Zambia be able to fully pay the loan, a sinking fund will be established in line with the requirements of the loans and guarantees authorization Act Cap 66 to collect money to be used for the repayment of bonds as they develop.
The government move to boost road construction in Zambia is informed by the need to boost road infrastructure as a catalyst to spur economic growth.