Zambia Draws Rising Investor Interest as Fiscal Recovery Boosts Confidence

Zambia’s mining, energy and agriculture sectors are attracting renewed investor interest as the country’s fiscal consolidation efforts and emergence from sovereign default improve confidence in its economic outlook, according to Citi Zambia.

Speaking in an interview with Reuters, Lowani Chibesakunda, Citi’s Chief Executive Officer and Head of Banking for Zambia, said investors were responding positively to the country’s improving macroeconomic fundamentals.

“We have noted increased interest, especially when we have seen significant strides being made in terms of bringing stability to the Zambian economy,” she said.

Mining boom and debt recovery drive investment appetite

Chibesakunda said global demand linked to the energy transition continues to support investment in Zambia’s mining sector.

“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,” she said.

The renewed interest comes as Zambia continues to rebuild investor confidence 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. The exercise, launched on 29 May, forms part of broader efforts to improve debt sustainability and reduce long-term borrowing obligations.

Zambia’s Ministry of Finance said the transaction was a key element of its wider debt management strategy, with Citi acting as the sole mandated bank responsible for organising, structuring and executing the operation.

The country’s improving fiscal position has also been recognised by international credit rating agencies.

In November, S&P Global Ratings upgraded Zambia’s long-term and short-term foreign-currency sovereign ratings from Selective Default (SD) to CCC+/C with a stable outlook, formally removing the country from default status.

The upgrade followed government projections showing a stronger fiscal outlook for 2026, including plans to more than halve the budget deficit while targeting economic growth of more than 6% after years of debt restructuring and the economic effects of a severe drought.

Diversifying investor base broadens opportunities

Chibesakunda also highlighted growing diversification in Zambia’s investor base.

“We’ve seen increased interest from players coming through from the Middle East… just to give you a sense, the pharmaceutical sector, the technology space,” she said.

She added that, “We’ve had players coming into this market that are mining for the first time,” reflecting expanding participation in Zambia’s extractive industries.

The improving investment climate is also evident in official data. According to United Nations Conference on Trade and Development data, Zambia attracted US$1.24 billion in foreign direct investment in 2024, the country’s highest annual inflow since 2015.

For investors, the message is increasingly clear. Zambia’s combination of fiscal recovery, debt normalisation and rising global demand for copper and other critical minerals is strengthening its appeal as an investment destination.

The next phase will hinge on whether authorities can sustain fiscal discipline, accelerate reforms and convert growing investor interest into long-term capital deployment across mining, energy, agriculture and emerging sectors such as technology and pharmaceuticals.

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