Moody’s Upgrades Zambia’s Economic Outlook to Positive on Debt Reduction and Growth

Global credit rating agency Moody’s Investors Service has revised Zambia’s economic outlook from stable to positive, signaling growing confidence in the country’s fiscal and economic recovery. The upgrade reflects sustained progress in reducing government debt, alongside stronger economic growth and continued fiscal reforms. Debt Decline and Fiscal Consolidation Drive Optimism In its latest assessment, Moody’s highlighted a steady reduction in Zambia’s government debt burden, attributing the improvement to disciplined fiscal policies and economic expansion.

“The positive outlook reflects Zambia’s declining debt levels, supported by stronger GDP growth and ongoing fiscal consolidation,” the agency stated. “The government has implemented credible measures to stabilize public finances, and we expect these efforts to persist, further enhancing debt sustainability.” Reforms and Economic Recovery Gain Traction Moody’s noted that Zambia’s economic reforms—including debt restructuring agreements and enhanced revenue mobilization—have contributed to improved fiscal stability.



The country’s real GDP growth, projected at above 5% in 2025, has also bolstered investor confidence. The rating agency’s upgrade follows Zambia’s recent successful debt restructuring under the G20 Common Framework, which has eased repayment pressures and freed up resources for critical public investments. Implications for Zambia’s Financial Markets A positive outlook from Moody’s is a key indicator for international investors, potentially lowering borrowing costs and attracting foreign capital.

If sustained, this trajectory could lead to a future credit rating upgrade, further improving Zambia’s access to global financial markets. Zambian authorities have welcomed the revised outlook, viewing it as validation of ongoing economic reforms. While the outlook revision is a positive signal, Moody’s emphasized that continued debt management, structural reforms, and stable growth will be crucial for Zambia to secure a full ratings upgrade in the future.

Analysts suggest that further progress in diversifying the economy, improving governance, and sustaining investor confidence will be key to consolidating these gains..