Zambia’s foreign reserves have surged to an all-time high of US$5.2 billion, marking the strongest external position in the nation’s history and signalling a major milestone in its recovery from debt distress. The announcement was made by Finance Minister Dr. Situmbeko Musokotwane during a parliamentary session following his statement on the country’s recent credit rating upgrades.

Dr. Musokotwane said the record reserve levels reflect rising export earnings, renewed investor confidence and the cumulative impact of sustained fiscal, monetary and structural reforms. The strengthened buffer, he noted, enhances Zambia’s ability to absorb external shocks, supports exchange rate stability and reinforces the country’s international financial standing.

The reserves breakthrough comes as Zambia secures major credit rating upgrades from S&P Global Ratings and Fitch Ratings, signalling international recognition of the country’s economic turnaround.
On 21 November 2025, S&P upgraded Zambia’s long-term sovereign rating from Selective Default (SD) to CCC+ Stable, confirming the official exit from default. A week later, Fitch raised Zambia’s rating from Restricted Default (RD) to B– Stable, returning the country to the B-category for the first time since 2019.

In Parliament, the minister underscored that the upgrades reflect progress in debt restructuring, macroeconomic stabilisation and improved medium-term growth prospects. Zambia has now restructured US$12.7 billion of the eligible US$13.5 billion external debt — a 94% coverage rate — including the successful resolution of US$3.8 billion in Eurobonds as of June 2024.

The developments, Dr. Musokotwane said, mark a dramatic rebound from Zambia’s fall into default in 2020 and illustrate “the scale of the reforms that have restored national credibility.”

Government officials say the improved credit standing is already attracting increased foreign direct investment in mining, agriculture, manufacturing, energy and tourism — sectors central to boosting foreign exchange inflows and long-term stability.

While the improved ratings could ease future access to financing, the minister emphasised that Zambia has no intention of returning to unsustainable commercial borrowing. Instead, government aims to leverage the restored confidence to lower risk premiums, support private-sector financing and deepen partnerships with development institutions.

Dr. Musokotwane concluded that the record reserve levels and strong rating recovery are “a foundation for continued economic renewal, not a final destination,” reaffirming government’s commitment to fiscal discipline, responsible debt management and the completion of outstanding creditor negotiations.