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Zambia Launches $1.36B Debt Buyback as African Nations Tackle Servicing Costs

Zambia initiated a cash tender offer to repurchase $1.36 billion in bonds maturing in 2053, joining a widening group of African governments moving to lighten debt burdens through market buybacks. The southern African nation seeks to reduce annual debt servicing obligations that have strained public finances. Bond prices jumped following the announcement as investors assessed the repurchase terms. The tender marks Zambia's latest effort to restructure obligations accumulated during years of elevated borrowing costs and commodity price volatility. African nations have increasingly turned to debt buyback programs as an alternative to traditional restructuring negotiations. This allows governments to retire outstanding securities at negotiated discounts. Success of the tender could reshape Zambia's debt maturity profile and free capital for infrastructure and social spending.