Zambia is drawing investors again after default

Investor appetite for Zambia has returned as the country’s fiscal consolidation gains traction after its sovereign default, according to Citi. The bank’s country chief, Lowani Chibesakunda, said interest has increased as confidence in the Zambian economy improves.

She said the strongest investor interest is coming from mining, energy and agriculture. Zambia’s copper endowment remains the main draw, especially as global demand for the metal rises on the back of clean energy investment, electric vehicles and power needs linked to artificial intelligence data centres.

The government’s debt repair efforts have also helped change sentiment. Zambia secured 97.85% participation in a cash tender offer for its $1.365 billion outstanding notes, and Citi acted as the sole mandated bank for the transaction.

The country’s default status was formally removed in November when S&P Global upgraded Zambia’s foreign-currency ratings to CCC+/C from selective default. That upgrade reflected a better fiscal outlook for 2026, with authorities expecting the deficit to narrow significantly and growth to exceed 6%.

Chibesakunda said the recovery is also pulling in new types of investors. She pointed to fresh interest from the Middle East, as well as activity from sectors such as pharmaceuticals and technology, while mining is also seeing first-time entrants.

That broader shift is reflected in the numbers. United Nations trade data show Zambia attracted $1.24 billion in foreign direct investment in 2024, the highest inflow since 2015.

For Zambia, the message is clear: the country is no longer being viewed only through the lens of debt distress. Investors are increasingly treating it as a re-opening market with copper, energy and agriculture at the centre of its next growth phase.