Lusaka, June 11, 2025, ZANIS — Minister of Energy, Makozo Chikote, says the government has dropped the outstanding petroleum debt from over US$877 Million to about US$521 Million.
Mr Chikote has disclosed that the outstanding debt as at July 31, 2021, stood at US$477, 798, 993, comprising a principal amount of US$280, 149, 213 and late payment interest of US$197, 649 779.
The Minister was responding in Parliament after Lunte Member of Parliament, Mutotwe Kafwaya, asked him how much debt the government has accumulated in the procurement of fuel as of July 2021 and how much the debt had accumulated as of 2024.
Mr Chikote explained that on October 1, 2022, government shifted policies to dis-engage from procurement of petroleum products, but a number of orders to supply had already been placed on the existing quantity based contract and were delivered until the first quarter of 2023.
The Minister, therefore, stated that the principal accumulated to US$477, 779 233, while the interest accumulated to US$431, 395, 924, bringing the total of petroleum debt to US$877, 175, 157 as of June 30, 2024.
He added that the supply contracts that were signed between 2016 and 2019 contained the provision for late payment interest and there have been no new supply contracts entered into by the current administration.
“To this effect, two of the suppliers were paid a total sum of US$ 109 108 092 including the principal amount. As of December 2024, the outstanding debt stood at US$735 819 423 and in 2025, the government has continued to negotiate with the suppliers such that the outstanding debt has reduced to US$521, 650, 005,” Mr Chikote revealed.
The Minister further stated that the government also negotiated discounts on late payment interests from over US$ 94 Million to about US$ 20.2 Million from two suppliers.
Mr Chikote indicated that settlement agreements with ER Industrial International Energy Resources and Sahara Energy Resources DMCC to dismantle the outstanding debt have been signed, while negotiations are ongoing with BB Energy.
He noted that as the government continues to dismantle the debt, it has put in place favourable policies that are promoting competition among players in the sector, thereby, reducing the cost of petroleum products in the country.
Meanwhile, Minister of Health, Elijah Muchima, told Parliament today that the government through his ministry is focused on the rehabilitation of level one hospital in Siavonga District of Southern Province.
Dr Muchima stated that the government is aware of the ever growing population in the district and the need for a bigger health facility, hence, the rehabilitation of the hospital whose works will commence in 2026.
