By Ellen Hambuba
The Bank of Zambia (BOZ) has welcomed the country’s latest credit rating upgrades by S&P and Fitch, describing them as a major boost to the economy and a clear endorsement of government’s debt restructuring efforts.
S&P has raised Zambia’s rating to CCC+, while Fitch has upgraded it to B-, officially taking the country out of default territory for the first time since 2020.
BOZ Governor Dr. Danny Kalyalya said the upgrades confirm that Zambia’s debt is now on a sustainable path. He explained that the previous default status had made borrowing more expensive, tightened liquidity, and limited banks’ ability to support businesses and government.
Dr. Kalyalya noted that the improved ratings will enable lenders and investors to extend credit to Zambia at lower cost, helping reduce interest rates, stabilize the exchange rate, and ease the cost of living over time. He added that the upgrades also reduce pressure on government’s domestic borrowing and strengthen confidence in Zambia’s broader economic reforms.
The Bank of Zambia has announced plans to conduct public outreach to explain the full implications of the rating improvements.
