Investor appetite for Zambia is recovering as the country’s fiscal reforms and successful emergence from sovereign default restore confidence, with growing interest in the mining, energy and agriculture sectors, a senior executive at Citi said.
“We have noted increased interest, especially when we have seen significant strides being made in terms of bringing stability to the Zambian economy,” Citi Zambia Chief Executive and Banking Head Lowani Chibesakunda told Reuters in an interview on Tuesday.
She said investors were showing particular interest in Zambia’s mining, energy and agriculture industries, reflecting renewed confidence in the country’s economic outlook.
Zambia, Africa’s second-largest copper producer, is well positioned to benefit from rising global demand for the metal, which is essential for the energy transition, electric vehicles and the rapid expansion of artificial intelligence data centres.
“You cannot talk about the Zambian story without emphasising the importance of mining and seeing how copper prices have remained bullish,” Chibesakunda said.
“The focus that is there now on copper-related products, be it your electric vehicles, et cetera, is really driving a lot of growth in that sector.”
The improving investor sentiment follows Zambia’s progress in restoring macroeconomic stability after years of financial distress.
Last month, the government secured 97.85% participation in a cash tender offer for its outstanding international bonds worth $1.365 billion, an operation launched on May 29 as part of efforts to strengthen debt sustainability and reduce long-term liabilities.
The Ministry of Finance said the transaction formed part of its broader strategy to improve the country’s debt profile following an extended restructuring process. Citi acted as the sole mandated bank to organise, structure and execute the transaction.
Zambia became the first African country to default on its sovereign debt during the COVID-19 pandemic in 2020 after failing to make payments on its international bonds. The default triggered years of negotiations with official and private creditors before the government successfully completed a comprehensive debt restructuring.
The country’s improving fiscal position has since been recognised by international ratings agencies.
In November, S&P Global Ratings upgraded Zambia’s long- and short-term foreign-currency credit ratings to CCC+/C from SD (Selective Default) while assigning a stable outlook, formally removing the country from default status.
The agency cited the government’s progress in debt restructuring and expectations of stronger public finances.
The Zambian government has projected a significantly improved fiscal outlook for 2026, forecasting that the budget deficit will be cut by more than half while economic growth is expected to exceed 6 percent.
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The stronger outlook comes after years of economic challenges that included prolonged debt restructuring negotiations and the impact of a severe drought that affected agricultural production and electricity generation.
Authorities are banking on increased copper production, stronger fiscal discipline and renewed private sector investment to support the country’s economic recovery.
The renewed interest from international investors is expected to bolster Zambia’s ambitions to expand copper output, strengthen energy infrastructure and develop its agricultural sector as it seeks to sustain economic growth and improve fiscal s
