By Ellen Hambuba
Zambia has received a significant boost to its economic credibility after global ratings agency Fitch upgraded the country’s credit rating from restricted default to B-minus, with a stable outlook.
Fitch says the upgrade follows Zambia’s successful restructuring of over 94 percent of the 13-billion US dollars in external debt that pushed the country into default, including Eurobonds and most commercial loans four years ago.
The agency notes that this means Zambia has now normalised relations with most of its foreign lenders after years of debt restructuring, with only a small portion still under negotiation.
Fitch adds that Zambia’s debt is now cheaper to service, as much of it has been replaced with low-interest, long-term loans from official lenders, reducing pressure on government finances.
The agency projects that Zambia’s economy will strengthen, with growth driven by mining and improved agricultural production, while inflation is expected to decline over the next two years.
Fitch, however, warns that Zambia’s debt remains high and that the upcoming 2026 elections could test fiscal discipline.
The improved rating signals growing confidence in Zambia’s economic direction and could help attract further investment.
Meanwhile, President HAKAINDE HICHILEMA has welcomed Zambia’s removal from “default” status by international credit-rating agencies, describing it as a major milestone in the country’s economic recovery.
This follows a decision by S&P Global Ratings earlier in the week to lift Zambia out of default, and today’s move by Fitch Ratings to upgrade Zambia’s sovereign credit rating from “Restricted Default” to B-minus with a Stable Outlook.
President HICHILEMA says the upgrades are a strong vote of confidence in the reforms undertaken by Government and in the resilience of Zambians.
He says the decisions reflect a simple truth: Zambia is rising again, and the world is recognising the discipline and determination of its people.
President HICHILEMA has also welcomed new data showing that inflation has continued to ease, noting that this provides relief to households facing high costs of living and creates space for lower interest rates and increased business activity.
He states that the ratings upgrade is not an end in itself, but a foundation for building a stronger and more inclusive economy.
President HICHILEMA says lower borrowing costs will allow Government to channel more resources towards roads, schools, hospitals, clean water, electricity, and job creation.
He has assured the nation that Zambia’s recovery will not be reversed and that Government will remain focused on economic growth, employment, and long-term stability.
This information was released to ZNBC News by State House Chief Communications Specialist CLAYSON HAMASAKA.
