Zambia’s mining, energy, and agriculture sectors are experiencing a wave of fresh investor interest as aggressive fiscal consolidation takes hold following the Southern African nation’s historic exit from sovereign default, according to Citigroup Inc.
Economic stability is opening doors to non-traditional players, with Middle Eastern investors entering the market for the first time in sectors spanning pharmaceuticals, technology, and extraction. The shift marks a significant turnaround for a country that became Africa’s first pandemic-era default in 2020.
“We have seen increased interest from players coming through from the Middle East,” Lowani Chibesakunda, Citi’s country head for Zambia, said in an interview. Some mining investors are entering the Zambian market for the first time, she added, pointing to a broadening appetite as the macro-economic environment stabilizes.
Copper remains the centerpiece of Zambia’s investment thesis. Rising global demand supercharged by the clean energy transition and the immense power requirements of artificial intelligence data centers- has kept prices bullish and fixed global attention on the country’s vast resource base.
The revival is supported by a rigorous debt rehabilitation process that has restored market confidence. In November, S&P Global Ratings upgraded Zambia’s foreign-currency credit rating to CCC+/C from selective default, officially closing the chapter on its default status. Following the upgrade, Lusaka forecast that its budget deficit would more than halve in 2026, with economic growth targeted to accelerate above 6%.
Wall Street has played a key role in the restructuring. Citi acted as the sole bank on a cash tender offer for Zambia’s $1.365 billion in outstanding notes. Launched in May, the offer drew a massive 97.85% participation rate, a crucial step in the government’s broader efforts to trim long-term debt obligations.
The structural reforms are already showing up in hard data. Foreign direct investment into Zambia reached $1.24 billion in 2024, marking its highest level since 2015, according to United Nations trade data.
