Fitch Ratings has elevated Zambia’s Long-Term Foreign-Currency Issuer Default Rating to B–, reflecting strengthened confidence in the nation’s economic recovery. This decision follows a similar upgrade by S&P Global Ratings, highlighting increasing international approval of Zambia’s reform initiatives.
The agency identified the near-finalization of Zambia’s external debt restructuring and enhanced fiscal discipline as primary reasons for the upgrade. Finance and National Planning Minister Dr. Situmbeko Musokotwane endorsed this assessment, highlighting that 94 percent of the country’s commercial, bilateral, and multilateral debt has been successfully renegotiated under the G20 Common Framework.
Projections indicate a substantial reduction in Zambia’s public debt, expected to drop from 114 percent of GDP in 2024 to 85 percent by 2026. This improvement is supported by sustained economic growth, consistent primary budget surpluses, and a stronger Kwacha. Additionally, external debt servicing costs are anticipated to decrease to 2 percent of GDP by 2027, a significant decline from the 5.1 percent recorded in 2019.
The rating improvement coincides with optimistic economic forecasts, including strong growth in mining and agriculture, inflation reducing to single digits, and a projected return to current account surplus beginning in 2026.
Dr. Musokotwane emphasized that the consecutive rating upgrades position Zambia as a lower-risk, reform-oriented destination for investment. He noted this improved standing will facilitate better access to financing, reduce borrowing expenses, and generate new opportunities across multiple economic sectors.
The government reaffirmed its dedication to maintaining fiscal discipline and continuing economic reforms, with the objective of converting economic recovery into increased employment, reduced inflation, and enhanced living standards for the population.
