MOODY's Ratings has upgraded Zambia's sovereign credit rating from Caa2 to Caa1 and maintained a positive outlook, effective 30th October 2026. The agency said the upgrade reflects substantial and sustained improvement in Zambia's government debt trajectory, marking further progress since its 2020 default. The action follows Zambia's 9th October 2026 staff-level agreement with the IMF

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MOODY’s Ratings has upgraded Zambia’s sovereign credit rating from Caa2 to Caa1 and maintained a positive outlook, effective 30th October 2026.

The agency said the upgrade reflects substantial and sustained improvement in Zambia’s government debt trajectory, marking further progress since its 2020 default.

The action follows Zambia’s 9th October 2026 staff-level agreement with the IMF for a proposed US$1.472 billion, 36-month Extended Credit Facility, which is subject to Executive Board approval.

Moody’s now has Zambia among eight countries in sub-Saharan Africa with a positive outlook, including South Africa, Nigeria and Angola. The agency recently projected Zambia and Ethiopia will record the largest debt reductions in the region.

The Ministry of Finance and National Planning has welcomed the move, saying it strengthens investor confidence, supports lower borrowing costs over time and reinforces prospects for FDI, exchange rate stability and sustainable development financing ahead of the 2027 Budget on 6th November 2026.

Despite the upgrade, Moody’s notes Zambia still spends about 35% of government revenue on interest, one of the highest ratios in the region.

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