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Investor Confidence Returns to Zambia as Economic Reforms Gain Momentum
Investor interest in Zambia is strengthening following the country’s emergence from sovereign default, with mining, energy and agriculture attracting fresh capital as fiscal reforms restore confidence in one of Africa’s leading resource-rich economies.
International investors are showing renewed confidence in Zambia’s economy as government-led fiscal reforms and successful debt restructuring improve the country’s macroeconomic outlook, according to global financial services firm Citi.
Speaking in an interview with Reuters, Lowani Chibesakunda, Citi’s Chief Executive and Head of Banking for Zambia, said the country is experiencing growing investor interest across key sectors, particularly mining, energy and agriculture, as economic stability continues to improve.
“We have noted increased interest, especially when we have seen significant strides being made in terms of bringing stability to the Zambian economy,” Chibesakunda said.
She noted that investor enquiries have been particularly strong in industries that are central to Zambia’s long-term economic development, reflecting renewed confidence in the country’s investment climate.
Mining Continues to Drive Investment
Zambia’s vast copper reserves remain one of its strongest investment attractions. As global demand for critical minerals accelerates—driven by electric vehicle production, renewable energy technologies and expanding artificial intelligence (AI) infrastructure—the country’s mining sector is increasingly viewed as a strategic destination for long-term capital.
“You cannot talk about the Zambian story without emphasising the importance of mining and seeing how copper prices have remained bullish,” Chibesakunda said.
She added that growing demand for copper-intensive technologies, including electric vehicles and advanced digital infrastructure, continues to stimulate investment throughout the mining value chain.
Fiscal Reforms Strengthen Market Confidence
Investor sentiment has also been supported by Zambia’s progress in restoring fiscal sustainability following years of debt restructuring.
The government recently secured 97.85% participation in a cash tender offer for its US$1.365 billion outstanding international bonds, an important milestone in its broader strategy to strengthen public finances and reduce long-term debt obligations. Citi acted as the sole mandated bank responsible for organising, structuring and executing the transaction.
Further evidence of improving confidence came in November, when S&P Global Ratings upgraded Zambia’s foreign currency credit rating from Selective Default (SD) to CCC+/C, formally removing the country from default status.
The upgrade followed improved fiscal projections, including expectations that the national budget deficit will more than halve by 2026 and that economic growth will exceed 6%, supported by stronger macroeconomic management and the gradual recovery from the effects of a severe drought.
New Sources of Foreign Investment
According to Citi, Zambia is also attracting new categories of international investors, including businesses from the Middle East, with increasing interest extending beyond mining into sectors such as technology and pharmaceuticals.
The country’s improving investment profile is reflected in official data. According to United Nations investment statistics, Zambia attracted approximately US$1.24 billion in foreign direct investment (FDI) during 2024—its highest annual inflow since 2015.
The combination of improved fiscal discipline, abundant natural resources and policy reforms is helping position Zambia as one of Africa’s emerging investment destinations.
Why It Matters
Zambia’s economic recovery offers an encouraging example of how fiscal reform, debt restructuring and policy stability can restore investor confidence. As global demand for critical minerals continues to rise, Zambia is well positioned to benefit from increased investment in copper and other strategic sectors. The country’s experience also highlights the importance of sound macroeconomic management in attracting long-term capital and supporting sustainable economic growth across Africa.
Source: Reuters
Reporting: Colleen Goko.
Editing: Anathi Madubela and Sonali Paul.