Zambia Achieves Major Fiscal Milestone as S&P Lifts Sovereign Credit Status

The Zambian administration has welcomed what it describes as a major milestone in the nation’s economic turnaround, following S&P Global Ratings’ decision to upgrade Zambia’s sovereign credit standing—officially marking the country’s exit from selective default. Government authorities say the revision signals renewed confidence in Zambia’s long-term fiscal trajectory after several years of financial turbulence.

The ratings agency’s announcement on Friday elevated Zambia’s long- and short-term foreign-currency assessments to CCC+/C, up from SD, with a stable outlook. According to S&P, the designation reflects expectations that Zambia will sustain the momentum of its fiscal reforms and remain committed to honoring its debt obligations.

Finance Minister Situmbeko Musokotwane hailed the upgrade as a strong endorsement of the administration’s policy direction. “This confirms that Zambia has moved past its default episode and is steadily rebuilding its standing as a trustworthy and competitive environment for investment,” he said.

Zambia has grappled with acute debt distress since 2020, entering protracted negotiations with official and private creditors. The crisis was compounded by a devastating drought that undermined agricultural performance and power generation, exacerbating the country’s economic vulnerabilities.

In its September fiscal outlook, the government forecast a substantial reduction in budgetary pressure by 2026, projecting that the deficit would fall by more than half. Authorities also anticipate economic growth surpassing 6%, driven by rising copper output, expansion in the energy sector, and reforms linked to international financial-support arrangements.

Musokotwane reiterated the government’s resolve to finalize the outstanding components of Zambia’s debt-restructuring plan. He stressed that improving energy access, enforcing stronger fiscal discipline, and championing sustainable economic expansion remain central to the administration’s agenda.

The S&P upgrade is the latest indication of Zambia’s steady economic stabilization and is expected to enhance investor confidence as the country works to rebuild financial resilience and restore macroeconomic strength.

Source: Africa Publicity