Finance and National Planning Minister, Situmbeko Musokotwane, says Zambia’s recent sovereign credit rating upgrades by S&P Global Ratings and Fitch Ratings are the result of deep structural reforms—not rising global copper prices. His remarks followed Fitch’s decision to revise Zambia’s Long-Term Foreign-Currency Issuer Default Rating to a stable outlook, and S&P’s move to upgrade the country to CCC+/C, Zambia’s first step out of default territory since 2020. In a statement, Musokotwane dismissed claims that firmer commodity prices were behind the improved outlook.
He stressed that the rating agencies “did not upgrade Zambia because copper prices improved. They upgraded Zambia because we repaired the systems that govern how mineral wealth, debt, and public authority interact.” The Minister said the upgrades signalled a broader shift in Zambia’s economic trajectory, marking a transition from crisis response to long-term institutional rebuilding. “Zambia’s story today is no longer just about recovery from default.
It has become a lesson in how a nation can reset its economic identity—not by chasing quick, unsustainable growth, but by rebuilding the credibility of the institutions that support sustainable growth for generations to come,” he said. Musokotwane cited improvements in public financial management as a key pillar of the reforms, saying government has moved away from uncontrolled spending and strengthened budget oversight. “Wasteful expenditure has been cut, budget controls are stronger, and Parliament’s oversight role has been reinforced,” he said.
Read Full Article on Zambia Monitor
[paywall]
These reforms, he added, helped address credibility concerns linked to loans contracted between 2015 and 2020. The Minister pointed to Zambia’s successful external debt restructuring under the G20 Common Framework as a major milestone. “By restoring order to our repayment structure, we have reopened a credible path back to the global economy,” he said.
Zambia’s foreign exchange reserves have been rebuilt, offering greater protection against external shocks, Musokotwane said, adding that macroeconomic stability was now supported by improved coordination between fiscal and monetary authorities. “The earlier problem was not only high debt—but the absence of any buffers once investor confidence collapsed. That vulnerability has now been repaired,” he noted.
[/paywall]
