ECONOMIST Dr Lubinda Haabazoka says Zambia’s new credit rating is a strong sign that the country is trusted again by international lenders and investors will be willing to bring in more money.
On Sunday, Finance and National Planning minister Dr Situmbeko Musokotwane announced that the country had been removed from the global list of countries that failed to pay their debts.
Dr Musokotwane said the S and P Global moved Zambia from the Selective Default (SD) category to CCC+.
The change comes five years after the country failed to pay a US$42.5 million Eurobond instalment in 2020, during the Edgar Lungu administration.
In an interview with Kalemba, Dr Haabazoka said this upgrade is important because it reduces the risk of lending money to Zambia.
He explained that when risk goes down, borrowing becomes cheaper for both government and businesses.
He said the Kwacha also has a chance of becoming more stable and investors feel more confident about bringing money into the country.
For businesses, he stated that the benefits will show over time.
“Lower borrowing costs over time as banks adjust their risk pricing. More favourable credit terms from international suppliers and financial institutions. Stronger currency stability, which reduces the cost of imported inputs. Improved investor sentiment, supporting expansion, partnerships, and capital inflows. Greater predictability, which is essential for long-term planning and private-sector investment.
“In short, the upgrade restores confidence, reduces risk and creates a more stable environment for business expansion and job creation,” he said.
However, Dr Haabazoka warned that this upgrade is only a beginning and government must use it wisely.
He explained that finishing the remaining debt talks is important so that there is no more uncertainty about Zambia’s financial position.
He also said government must continue to control spending, collect revenue properly and stick to its long term financial plans.
According to him, Zambia must focus on growing sectors that bring in foreign currency, such as mining, agriculture, energy and manufacturing because strong exports help keep the Kwacha stable.
He adds that Zambia needs more power generation and better electricity infrastructure if it wants to attract serious investment.
“If government maintains discipline, completes its debt agenda, and drives export-led growth, this rating improvement can become a catalyst for investment, economic stability, and long-term prosperity.”
“However, the country must remain vigilant. Responsible borrowing, policy consistency, and structural reforms will be essential to ensure that Zambia never again returns to the cycle of unsustainable debt and default,” he explained.
By Catherine Pule
Kalemba, November 26, 2025
