Zambia’s government, led by Finance and National Planning Minister Situmbeko Musokotwane, has laid out a comprehensive plan aimed at restoring economic stability, improving governance, and re-building investor confidence. The reforms come after years of economic strain marked by volatile debt levels, governance challenges and shrinking fiscal buffers.

Between 2015 and 2021, Zambia experienced severe economic pressures: falling copper prices, rapid external borrowing, weak public-finance controls and political uncertainty: a combination that resulted in job losses in mining, suspension of donor support, and impaired investor confidence. In response, the “New Dawn” administration introduced major reforms upon coming into power in 2021: restructuring external debt under the G20 Common Framework, restoring foreign reserves, tightening budget controls, stabilizing mining-sector policy, and enhancing oversight of public spending.

As a result, Zambia has seen sovereign credit upgrades from major ratings agencies, shifting its image from a high-risk, default-prone economy to one with stronger institutional frameworks. This change is expected to result in lower borrowing costs for government and businesses, increased foreign and domestic investments, and expanded opportunities for growth across mining, agriculture, manufacturing, and energy sectors.

Looking forward, the government plans to build on these gains by pursuing job creation, improving competitiveness, and sustaining reforms that strengthen fiscal discipline and economic diversification.

Key Highlights

• Debt restructuring & restoration of fiscal order after default-era instability.
• Credit rating upgrades signaling renewed investor confidence and greater macroeconomic stability.
• Reforms in budgetary control, public financial oversight, and economic management.
• Clear roadmap for economic diversification — beyond mining — into energy, manufacturing, agriculture, and other sectors.