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Zambia has officially exited default after S&P Global Ratings upgraded the country’s sovereign credit rating to “CCC+/C” from “SD/SD”, marking a decisive step forward in the nation’s economic recovery and restoring confidence among global investors.
S&P cited Zambia’s successful restructuring of 94 percent of its US$13.3 billion external debt, stronger fiscal discipline, and improving macroeconomic stability as key factors behind the upgrade.
The rating agency said Zambia was now steadily rebuilding credibility after years of economic turbulence.
Zambia’s fiscal consolidation path remains intact, with government debt projected to fall to 78.5 percent of Gross Domestic Product (GDP) by 2028.
The country’s foreign reserves have risen to US$5.2 billion, supported by IMF inflows, improved copper earnings, and central bank interventions.
It stated that inflation was expected to stabilise in single digits by 2026.
Read more: Musokotwane says Zambia targeting consistent growth to navigate post-debt restructuring era
Copper output rose 17.8 percent in the first half of 2025, highlighting the mining sector’s critical role—accounting for 14 percent of GDP and up to a quarter of government revenue.
With global copper prices projected to remain high, investor confidence in Zambia’s mining future continues to strengthen.
Despite heightened political activity ahead of the 2026 elections, S&P said: “Zambia’s reform momentum remains strong. Economic shocks from the 2024 drought were softened by diversification into renewable energy, battery storage and off-grid power systems.”
The agency also noted that Zambia could earn further rating improvements if fiscal balances strengthen faster than forecast, reserves continue to grow, and economic growth accelerates.
Finance and National Planning Minister, Dr Situmbeko Musokotwane, described the rating upgrade as a “strong vote of confidence” in Zambia’s reform path and economic governance.
“This confirms Zambia is restoring its place as a credible, stable and investable economy,” he said, adding that the progress reflects the determination of both government and citizens.
Musokotwane stated that upgrade marked a major milestone, signalling that Zambia was firmly on its way out of debt distress and back onto a path of economic stability.
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