Zambia bond prices soar on debt deal progress, IMF support

Zambia’s Eurobonds have recorded strong gains in the second quarter of 2026, driven by continued progress in debt restructuring and improving investor confidence in the country’s economic outlook.

Market commentary by access Bank group showed that the country’s 2033 Eurobond rose by nearly six percent to just below US$99, while the longer-dated 2053 bond surged by around 13 percent to almost US$74, according to CBBT composite pricing.

The rally reflected growing optimism among investors following major strides in Zambia’s external debt restructuring programme under the G20 Common Framework.

“About 94 percent of Zambia’s debt restructuring process has now been addressed, significantly reducing sovereign default risk and improving the country’s standing among international investors,” according to the commentary.

Read more: Fitch upgrades Zambia to ‘B-’, assigns stable outlook on economy as debt restructuring nears completion

The positive momentum had also been supported by Zambia’s performance under the International Monetary Fund’s Extended Credit Facility programme, with the country receiving favourable programme reviews and continuing discussions for a possible successor arrangement.

Access Bank Group noted that improved external conditions had further strengthened market confidence, particularly elevated copper prices and the appreciation of the Zambian kwacha, which had helped bolster foreign exchange reserves and enhance the country’s debt-servicing capacity.

“The sharp recovery in bond prices, especially for the 2053 Eurobond, indicates that investors are increasingly willing to take on longer-term exposure to Zambia as macroeconomic fundamentals continue to improve under President Hakainde Hichilema’s administration,” the bank stated.

However, the bank cautioned that despite the constructive near-term outlook, Zambia’s Eurobonds remained vulnerable to external and domestic risks, including fluctuations in copper prices, the potential impact of drought conditions, and uncertainty surrounding the 2026 general elections.

The bank emphasized that maintaining fiscal discipline and ensuring policy continuity would be critical in sustaining investor confidence and preserving the gains recorded in the bond market.

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