Zambia’s Sovereign Rating Upgraded to B– by Fitch
Zambia has received a major boost in international financial confidence as Fitch Ratings officially upgraded the country’s sovereign credit rating from “Restricted Default” to B–, with a stable outlook. The upgrade signals that Zambia is regaining trust from global investors and has taken decisive steps to correct its economic course.
According to Finance Minister Dr Situmbeko Musokotwane, the rating reflects the nation’s commitment to fiscal discipline, debt restructuring, and economic reform. “Simply put, this is not just a technical announcement for investors abroad. It is a message of renewed opportunity for every Zambian, from farmers and market traders to young graduates, miners, transporters, and small business owners,” he said.
A sovereign credit rating is effectively a country’s financial reputation. When Zambia previously fell into default, borrowing costs soared, projects slowed, and investor confidence dropped. Fitch’s upgrade indicates that Zambia is now viewed as a safer investment destination, lending risk has decreased, borrowing costs are likely to fall over time, confidence in the economy is returning, and businesses can plan with greater certainty.
While prices for essentials such as mealie meal, fuel, rent, and transport remain high, the rating upgrade is expected to ease pressure gradually. Improved investor confidence supports the Kwacha, stabilises import costs, and may reduce inflation, helping prices moderate over time.
Economic improvements are likely to spur activity across multiple sectors. The Fitch upgrade paves the way for expansion of mines and factories, growth in tourism and agribusiness, increased private financing for SMEs, and boosts in transport, logistics, and construction. As businesses expand, jobs follow, creating greater opportunities for young people and strengthening Zambia’s productive capacity.
The upgrade also confirms Zambia’s progress in key areas. Fiscal discipline has been restored, debt restructuring is nearly complete, government debt is falling, inflation is trending downwards, mining and agricultural growth are strong, and policy direction is stable and predictable.
Dr Musokotwane emphasised that Zambia’s economic recovery is fragile. Maintaining discipline is crucial to protecting the confidence rebuilt in recent years. Reckless borrowing, hidden guarantees, and poor governance could quickly reverse progress.
Zambia now stands at a pivotal point in its economic journey: from default to recovery, from crisis to stability, and from uncertainty to opportunity. With continued reform, investment in production, and responsible growth, the country could return to strong economic seasons built on productivity, exports, and jobs.
Dr Musokotwane’s message to the nation was clear: local businesses should plan boldly, young people should seize emerging opportunities, farmers and producers can expect expanding markets, and investors can engage with confidence.
“The Fitch upgrade is not a miracle; it is the reward of discipline, sacrifice, and reform. Better days are now possible, but only if we protect this progress fiercely. Zambia is rising again and this time, we must rise wisely,” he concluded.
