S&P Global Upgrades Zambia's Credit Rating

As President Hichilema nears his 6 months as Head of State, Zambia is showing strong signs of economic progress. On Friday, S&P Global Ratings upgraded the country from a CCC- to a CCC+ credit rating, demonstrating the President’s latest success in restoring Zambia’s economy. Additionally, S&P made optimistic observations about the government's commitment to economic change.

S&P said Zambia’s GDP growth could average 3% a year between 2022-2025, “since the government’s reforms have helped strengthen the economy.”

When President Hichilema won the 2021 election, he declared that the new administration inherited an "empty treasury." At the time of the election Zambia’s debt burden exceeded 120% of the country’s economic output.

Since then HH has made significant steps in stabilising the economy that will provide the basis for more employment and a better standard of living for all Zambians.

Today, Zambia's inflation rate stands at 14.2%, a two-year low, from 16.4 percent in December 2020. Over the following eight quarters, the BoZ anticipates sustained deflation in the 6.0 percent - 8.0 percent target range. This is ascribed to the catalytic advantages of winning an IMF staff-level approval for a $1.4 billion loan transaction, which the government successfully negotiated in January.