S&P Global Ratings has upgraded Zambia’s credit rating from SD (selective default) to CCC+ / C, officially confirming that the country has moved out of default. The rating agency has also given Zambia a stable outlook, showing confidence in the country’s economic direction.
The government says this upgrade is a major milestone in restoring financial stability and rebuilding international trust.
According to S&P, the decision is based on Zambia’s progress in restructuring its external debt, improving fiscal discipline, and stabilising the economy after years of financial pressure.
S&P reports that Zambia has reached debt restructuring agreements covering 94% of the US$13.3 billion debt that was under review. Only a small portion of commercial debt remains under negotiation. The agency says the risk from creditors who have not yet agreed is low because of the strong protections built into Zambia’s debt agreements.
The rating agency also highlights improvements in Zambia’s economic indicators. Inflation is expected to return to single digits by 2026, foreign reserves have increased to US$5.2 billion, and the country’s debt levels are projected to keep falling.
Zambia’s copper production grew by 17.8% in the first half of 2025, strengthening exports and government revenue. S&P says the mining sector will continue to anchor economic growth, especially with global copper prices expected to remain high.
The agency notes that although Zambia heads toward the 2026 elections, the Government’s reform programme remains strong and consistent. It also says the impact of last year’s drought was less severe than expected due to increased investment in renewable energy and other power solutions.
The government says it will continue focusing on responsible spending, completing the remaining debt talks, increasing energy generation, and supporting private-sector-led growth.
Finance Minister Dr. Situmbeko Musokotwane says the upgrade is a clear sign that Zambia’s economic reforms are working. He adds that the goal now is to ensure these improvements lead to more jobs, stable prices, and better opportunities for all Zambians.
By Rachel Mumba
