MOODY’S UPGRADES ZAMBIA’S CREDIT RATING

MOODY’S UPGRADES ZAMBIA’S CREDIT RATING

Zambia’s sovereign credit rating has been upgraded from Caa2 to Caa1 by Moody’s Ratings, with a positive outlook, strengthening the country’s international credit standing ahead of the 2027 National Budget presentation on Friday, 6 November 2026.

Announced on 30 October 2026, the upgrade reflects Moody’s assessment of substantial and sustained improvements in Zambia’s government debt trajectory, marking further progress in the country’s recovery from the 2020 sovereign debt default.

The decision follows earlier upgrades by S&P Global Ratings and Fitch Ratings, reinforcing Zambia’s improving credit profile following debt restructuring, fiscal consolidation, and macroeconomic stabilization.

WHAT DOES THE UPGRADE MEAN FOR ZAMBIA?

Improved sovereign creditworthiness creates opportunities for:

– Strengthening investor confidence and Zambia’s attractiveness to international capital;

– Potentially reducing borrowing costs for the Government and businesses over time;

– Supporting investment in mining, agriculture, energy, manufacturing, and infrastructure;

– Creating conditions for greater production, employment, and improved livelihoods; and,

– Strengthening confidence in prudent debt management and continued economic reforms.

The upgrade also follows Zambia’s 9 October 2026 staff-level agreement with the International Monetary Fund for a proposed US$1.472 billion, 36-month Extended Credit Facility, subject to IMF Executive Board approval.

The Minister of Finance and National Planning, Dr. SITUMBEKO MUSOKOTWANE, MP, will present the 2027 National Budget this Friday, 6 November 2026, against this backdrop of improving international credit confidence.

Under President HAKAINDE HICHILEMA’s Grow Zambia Agenda, the Government’s next priority is to convert economic stabilization gains into higher productivity, increased investment, stronger exports, value addition, meaningful employment, and rising household incomes.

Credit rating upgrades are not an end in themselves but their value lies in helping Zambia mobilize investment, finance productive economic activity, and deliver improvements in people’s lives.

The Government remains committed to fiscal discipline, prudent debt management, and policies that support sustainable, private-sector-led growth.

As Zambia prepares for the 2027 Budget, public institutions, businesses, cooperating partners, and citizens are encouraged to continue working together and pulling in the same direction of national development.

The task ahead is to translate renewed confidence into stronger production, more jobs, greater economic opportunities, and better livelihoods for ordinary Zambians.