The Zambian government has hailed a significant step forward in its economic recovery after S&P Global Ratings upgraded the country’s credit status, formally lifting Zambia out of selective default. Officials say the move reflects improving confidence in the nation’s long-term fiscal strategy after years of economic strain.
The upgrade, announced on Friday, raised Zambia’s long- and short-term foreign-currency ratings to CCC+/C, up from SD (selective default). The credit outlook was assessed as stable, indicating S&P’s expectation that Zambia will continue advancing its financial reforms and debt commitments.
Finance Minister Situmbeko Musokotwane described the development as a major affirmation of the government’s policy direction. “This demonstrates that Zambia has exited default and is regaining its reputation as a reliable and attractive destination for investment,” he said in a statement.
Zambia entered a prolonged period of debt distress beginning in 2020, leading to complex negotiations with bilateral and private creditors. The strain was worsened by a severe drought that hit agricultural output and electricity generation, placing additional pressure on the economy.
In its most recent budget outlook released in September, the government projected that fiscal pressures would ease significantly by 2026, with the national deficit expected to shrink by more than half. Authorities also anticipate economic growth to exceed 6%, supported by a rebound in copper production, energy sector expansion, and policy reforms tied to international financial-support programs.
Musokotwane reaffirmed the government’s commitment to completing the final elements of Zambia’s debt-restructuring framework. He emphasized that improving energy access, strengthening budget discipline, and supporting sustainable growth remain top policy priorities.
The ratings upgrade is the latest indicator of Zambia’s gradual economic stabilization and could help attract renewed foreign investment as the country works to rebuild financial resilience.
Source:Africa Publicity
