Fitch Upgrades Zambia to B- as Global Economic Outlook Boosts Investment Opportunities

Lusaka, Zambia – Zambia has received a major boost in investor confidence after Fitch Ratings upgraded the country’s sovereign credit rating from Restricted Default to B– with a Stable Outlook. The upgrade comes amid a moderate global economic growth forecast and falling oil prices, creating favorable conditions for Zambia’s economy, businesses, and job market.

Global Economic Outlook for 2025-2026

According to recent projections:

• World GDP is expected to grow 2.4% in 2025 and 2.3% in 2026.
• Emerging markets, excluding China, are forecasted to grow 3.3% in 2025.
• Oil prices are projected to decline from USD 79.5 per barrel in 2024 to USD 70 in 2025 and USD 65 in 2026.
• Major economies such as the US, Eurozone, and UK are expected to maintain moderate growth, while China is forecasted at 4.7% in 2025.

These global trends are expected to impact Zambia positively by reducing import costs, supporting the Kwacha, and easing inflationary pressures.

What the Fitch Upgrade Means for Zambia

The Fitch upgrade signals that Zambia is a safer and more attractive destination for investment, with multiple benefits for citizens and businesses:

• Lower borrowing costs for government and businesses.
• Stronger investor confidence, leading to more foreign direct investment in mining, agriculture, and infrastructure.
• Potential for job creation, particularly in youth employment and SME growth.
• Stabilization of prices and the cost of living, aided by falling oil prices.

Opportunities for Businesses and Investors

Analysts note that Zambia’s improved credit rating, coupled with a stabilizing global economy, provides a unique opportunity for Zambian entrepreneurs, investors, and exporters to expand operations, secure financing, and create jobs. Key sectors likely to benefit include:

• Mining and energy
• Agribusiness and food processing
• Construction, logistics, and transport
• Tourism and services

Caution: Maintaining Economic Discipline

Despite the optimism, experts warn that Zambia’s recovery remains fragile. To sustain investor confidence, the government must maintain:

• Fiscal discipline and transparency
• Proper management of public debt
• Good governance and regulatory stability

Finance Minister Dr. Situmbeko Musokotwane stressed: “The Fitch upgrade reflects Zambia’s strong reforms and fiscal discipline. Coupled with a favorable global economic environment, it sets the stage for sustainable growth, job creation, and improved living standards for all Zambians.”

Zambia’s Road Ahead

With Fitch Ratings affirming Zambia’s improving creditworthiness and global economic conditions signaling opportunities, the nation is positioned for long-term growth, investment attraction, and economic stability. Businesses and investors are encouraged to leverage this environment, while citizens can anticipate gradual improvements in employment, prices, and economic productivity.