Zambia has officially moved out of external debt default after S&P Global Ratings upgraded the country’s long- and short-term foreign currency sovereign credit ratings to ‘CCC+/C’ from ‘SD/SD’, with a stable outlook. The announcement marks a major milestone in the country’s economic recovery efforts.
S&P Global Ratings, a leading international credit assessment agency, evaluates the ability of governments and companies to meet their financial commitments. The upgrade signals renewed international confidence in Zambia’s economic reforms under the current administration.
According to the Ministry of Finance and National Planning, the new rating reflects steady fiscal discipline, strengthened policy credibility, and the government’s decisive actions to resolve the debt overhang that has constrained economic activity since 2020. It also highlights improvements in Zambia’s macroeconomic environment, driven by progress in external debt restructuring, resilience in the mining sector, and stabilizing inflation expectations.
S&P noted that Zambia has secured restructuring agreements with official and commercial creditors representing about 94 percent of eligible debt. Only a small portion—mostly held by commercial banks—remains under negotiation.
Finance and National Planning Minister Situmbeko Musokotwane welcomed the development, calling it a strong vote of confidence in Zambia’s reform agenda and governance.
“It confirms that Zambia has moved out of default status and is steadily restoring its place as a credible, stable, and investable economy,” Dr. Musokotwane said.
He described the upgraded rating as recognition of the country’s pioneering role under the G20 Common Framework, noting that Zambia was one of the earliest countries to undertake the complex restructuring process.
“The upgrade is not only a recognition of economic progress, but a testament to the determination, discipline, and endurance of the government and the Zambian people,” he added.
Dr. Musokotwane emphasized that the rating supports the government’s strategy focusing on debt sustainability, export-led growth, stable macroeconomic management, improved governance, and expanded energy capacity. He said these reforms are aimed at delivering more jobs, stable prices, greater opportunities for youth and women, and broader economic participation by local businesses.
The government expressed appreciation to official and commercial creditors, cooperating partners, civil society, the private sector, and citizens for their support throughout the restructuring process. Their engagement, the ministry noted, helped put Zambia back on a sustainable economic path.
Going forward, the government reaffirmed its commitment to fiscal discipline, completion of remaining debt restructuring steps, expansion of energy capacity, stronger social protection programs, and support for private-sector-driven growth.
Zambia’s exit from default also underscores that risks from potential holdout creditors remain limited. This is due to safeguards such as the comparability-of-treatment principles under the G20 Common Framework and “most-favoured-creditor” clauses embedded in Eurobond agreements.
With the upgrade, Zambia is now positioned to gradually rebuild its global financial standing and pursue long-term economic prosperity.
These are the kind of developments we must look forward to as country. Unfortunately such news doesn’t sit well with most ‘illiterates’ but if it’s anything to do with caderism it excites a lot of illiterates. That’s the Zambia we have built unfortunately for us.
No improvement in our pockets, and its us you are calling ‘illiterates’ who vote and, in the majority,
Good news indeed. Keep up the good work Gov’t! God bless Zambia!
Agree to all the above comments
Excellent news.
This is what should have been the first story on your website.
Not the non evident accusations by Shishuwa Shishuwa.
Shame on you, Lusaka Times.
Well done
Good news for zambians but elephant
In the house remains thats loadshedding.
Same difference on the ground, anyway hunger is biblical