HH Hails Moody’s Verdict, Credits Zambians for Debt Recovery

President Hakainde Hichilema has welcomed a new outlook from Moody’s Ratings projecting that Zambia, alongside Ethiopia, will record the largest reductions in government debt in sub-Saharan Africa.

The ratings agency also places Zambia among eight countries in the region with a positive outlook, a marked turnaround for a country that was in default in 2020.

Since the outlook was published, Zambia has reached a staff-level agreement with the International Monetary Fund on a new USD 1.472 billion Extended Credit Facility. The programme is intended to support the country’s shift from stabilisation to growth.

In a statement, President Hichilema credited the Zambian people for the progress.

“In 2020 Zambia was in default. Today one of the world’s leading ratings agencies says our debt is set to fall further than almost anywhere else in the region,” he said. “That is the result of hard choices, taken together, and of the patience and sacrifice of the Zambian people. This achievement belongs to them.”

The President described lower debt as the foundation of his Grow Zambia agenda, which aims to convert macroeconomic stability into jobs, investment and rising incomes in every province.

“Every kwacha freed from debt is a kwacha we can put to work for Zambians,” he said.

He cautioned, however, that the work is not finished, acknowledging that debt servicing costs remain a burden on the public purse.

“We are not complacent. The cost of servicing our debt remains too high, and that is why we will hold firmly to fiscal discipline under the new programme,” President Hichilema said. “We have restored stability. Now we are delivering growth.”

The Government says it will continue to work with the IMF, cooperating partners and investors to ensure that the gains of recent years are felt in the daily lives of all Zambians.