Musokotwane Outlines Zambia’s Economic Repair Journey
Zambia’s Minister of Finance and National Planning, Dr Situmbeko Musokotwane, has outlined the country’s economic recovery path, detailing how years of fiscal instability, governance weaknesses, and unsustainable borrowing have been systematically addressed to restore national credibility and investor confidence.
In a detailed national statement, Dr Musokotwane said the recent sovereign credit rating upgrades by S&P Global Ratings and Fitch Ratings were a direct result of deep institutional reforms rather than temporary economic improvements.
He stressed that Zambia is emerging from a period marked by shrinking buffers, mounting debt, and declining international trust.
Dr Musokotwane revisited the years between 2015 and 2021, describing them as a time when falling copper prices, rapid external borrowing, weakened public financial controls, and political uncertainty severely undermined Zambia’s stability. The consequences were widespread: job losses in mining, suspension of donor support, growing concerns over accountability, and a deteriorating investment climate. By 2020, Zambia had defaulted on its Eurobond, becoming the first African nation to do so during the COVID-19 pandemic.
According to the Minister, the New Dawn Administration inherited a deeply strained economic environment in 2021 but prioritised fiscal discipline and transparency. Key reforms included restructuring external debt under the G20 Common Framework, restoring foreign reserves, strengthening budget controls, and stabilising policy direction in the mining sector.
“By restoring order to our repayment structure, we reopened a credible path back to the global economy,” Dr Musokotwane said, adding that governance reforms, enhanced procurement systems, and renewed oversight over public funds have been central to rebuilding international trust.
The credit rating upgrades by S&P and Fitch reflect these improvements, marking Zambia’s transition from a high-risk, default-prone market to a recovering economy with stronger institutional foundations. This shift is expected to ease the cost of borrowing for both Government and businesses while attracting long-term investment into key sectors.
Dr Musokotwane emphasised that the true lesson from the crisis years is the importance of leadership discipline and strong oversight. He noted that the administration of President Hakainde Hichilema has deliberately centred its agenda on economic repair, transparency, and sustainable growth.
“This era of leadership is a response to the failures of the past,” he said. “It is this mindset that has restored Zambia’s standing with global markets and renewed confidence among investors and citizens alike.”
Looking ahead, the Minister said the Government aims to build on these gains through expanded job creation in mining, agriculture, manufacturing, and energy, alongside broader efforts to enhance Zambia’s regional competitiveness.
He concluded with a note of optimism, stating that while significant work has already been done, sustaining progress will require consistency, integrity, and national unity:
“The hard work of repair is underway. The greater work now lies in defending these gains. Together, we shall excel.”
