THE Economics Association of Zambia (EAZ) has praised President Hakainde Hichilema and Finance Minister Dr Situmbeko Musokotwane for steering Zambia out of debt default status, describing the development as a major turning point for the economy.
On Sunday, Dr Musokotwane announced that Zambia had been removed from the global list of countries in default after S&P Global upgraded the nation’s rating from Selective Default (SD) to CCC+.
In an interview with Kalemba, EAZ national secretary Dr Nicholas Mainza said the positive review was a direct result of the President’s policy reforms and the ministry’s consistent fiscal efforts.
“We have been in serious distress since 2020. It is not easy to move a country out of such economic difficulty,” said Dr Mainza.
“This upgrade means we can now borrow, particularly foreign debt at a lower cost. Government will have the ability to fund public infrastructure at relatively cheaper rates and with better value for money.”
He explained that the improved rating could also encourage commercial banks to reduce lending rates, subject to continued fiscal discipline.
Dr Mainza said the upgrade also creates fiscal space for government to finance projects, social programmes and key initiatives, which in turn strengthens consumer confidence and stimulates spending.
“This will lead to investor confidence, more local production and more jobs,” he said. “It will positively impact the Kwacha as foreign exchange inflows increase. We also expect a reduction in inflation because of this relief.”
He noted that the development could make Zambia more attractive for tourism, investment and expatriate settlement, adding that the country now appears safer and more predictable for business.
“A big step in the right direction,” he said. “Kudos to the Ministry of Finance for what they have done. It is because of the reform policies that Zambia has regained the confidence of external lenders. It’s all due to the hard work of the President and his team. We are moving in the right direction and this will ultimately improve the cost of living for Zambians,” he told Kalemba.
By Catherine Pule
Kalemba, November 27, 2025
