Zambia’s international credit standing has received a boost following an upgrade by Moody’s Ratings, which has moved the country’s sovereign credit rating from Caa2 to Caa1, with a positive outlook.
The upgrade, announced on 30 October 2026, reflects improvements in the country’s government debt trajectory and marks further progress in Zambia’s recovery from its 2020 sovereign debt default.
The latest rating action follows similar upgrades by S&P Global Ratings and Fitch Ratings, reflecting progress made through debt restructuring, fiscal consolidation and macroeconomic stabilisation.
Government says the improved credit standing has the potential to strengthen investor confidence, attract international capital and, over time, lower borrowing costs for both the public and private sectors.
The development also comes ahead of the presentation of the 2027 National Budget by Finance and National Planning Minister Dr Situmbeko Musokotwane on Friday, 6 November 2026.
It further follows a staff-level agreement reached with the International Monetary Fund on a proposed US$1.472 billion, 36-month Extended Credit Facility, subject to approval by the IMF Executive Board.
Government says its priority now is to translate the gains from economic stabilisation into increased investment, production, exports and employment under the Grow Zambia Agenda.
It adds that the focus remains on prudent debt management and fiscal discipline, while creating conditions for private sector-led growth and improved livelihoods.
By Rachel Mumba
