LUSAKA, July 1 – Zambia’s mining, energy and agriculture sectors are attracting increased investor interest as the country’s fiscal consolidation efforts strengthen confidence following its emergence from sovereign default, 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 outlook.
According to Chibesakunda, “We have noted increased interest, especially when we have seen significant strides being made in terms of bringing stability to the Zambian economy.”
She added that global demand linked to the energy transition continues to drive investment in Zambia’s mining industry, saying, “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.”
Zambia has made notable progress in restoring 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 notes, an exercise launched on 29 May as part of broader efforts to improve debt sustainability and reduce long-term borrowing obligations.
The Ministry of Finance said the transaction forms part of its wider debt management strategy, with Citi serving 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 credit ratings from Selective Default (SD) to CCC+/C with a stable outlook, formally removing the country’s 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 impact of a severe drought.
Chibesakunda also highlighted growing diversification in the country’s investor base.
She said, “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 added that “We’ve had players coming into this market that are mining for the first time,” reflecting expanding participation in Zambia’s extractive sector.
The improving investment climate is also reflected in official data. According to United Nations trade data, Zambia attracted US$1.24 billion in foreign direct investment during 2024, the country’s highest annual inflow since 2015.
The renewed investor confidence underscores Zambia’s progress in restoring macroeconomic stability and strengthening its investment environment, while rising global demand for critical minerals such as copper continues to position the country as a key destination for international capital in Africa.
