ZAMBIA has been removed from the global list of countries considered to have failed to pay their debt.
In its latest assessment, international rating agency S wnd P Global has lifted Zambia out of the Selective Default (SD) category and upgraded the country’s credit rating to CCC+.
According to the Ministry of Finance and National Planning, being taken out of the default category means Zambia is no longer classified as a country that cannot honour its debts, a label it carried since falling into default in 2020.
The change shows that global lenders now see Zambia as gradually recovering and taking meaningful steps to rebuild trust under the leadership of President Hakainde Hichilema.
S and P said its decision reflects clear progress in Zambia’s ongoing debt restructuring process, stronger fiscal discipline and improving economic conditions.
The agency noted that Zambia has reached agreements with most of its major creditors, reducing uncertainty around future repayments and helping restore confidence in the country’s ability to manage its debt.
The upgrade also comes with a stable outlook, suggesting that international observers believe Zambia is unlikely to slide back into financial distress if current reforms continue.
According to S and P, improvements in foreign reserves, easing inflation pressures and rising copper production have contributed to growing confidence among lenders and investors.
Finance and National Planning minister Dr Situmbeko Musokotwane said the decision by S and P Global Ratings is a strong vote of confidence in Zambia’s economic reforms, governance credibility and the resilience of people.
“It confirms that Zambia has moved out of default status and is steadily restoring its place as a credible, stable, and investable economy.”
“It also stands as a powerful acknowledgement of Zambia’s pioneering role under the G20 Common Framework. As one of the earliest countries to undergo this process, Zambia travelled a difficult and uncertain path, navigating complex negotiations, unprecedented legal and technical requirements, and the economic pressures of debt distress,” he said.
Dr Musokotwane said the upgrade is therefore not only recognition of economic progress, but a testament to the determination, discipline and endurance of the Government and the Zambian people.
“The Government extends its profound appreciation to all creditors, official, bilateral, multilateral, and commercial, as well as our cooperating partners, civil society, private-sector actors, and the Zambian public for standing with the nation through its most challenging period.”
“This upgrade is an affirmation that Government policies aimed at debt sustainability, export-led growth, stable macro-economic environment, improved governance and expanded energy capacity form a coherent and credible strategy for national resilience and long-term prosperity,” he explained.
He said government remained committed to ensuring that improved ratings, stronger fundamentals and restored fiscal health translate into more jobs, stable prices, greater opportunities for youth and women, stronger local business participation and shared prosperity for all Zambians.”
By Catherine Pule
Kalemba, November 24, 2025
