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Zambia will seek to attract foreign direct investment with an improved sovereign rating outlook should bondholders nod to the proposed Eurobond restructure. The southern African country will see an S&P and Fitch upgrade from the current default rating.
Zambia will seek to attract foreign direct investment with an improved sovereign rating outlook should bondholders nod to the proposed Eurobond restructure. The southern African country will see an S&P and Fitch upgrade from the current default rating.
For the seventh year running, the Absa Africa Financial Markets index continues to track the performance of financial markets on the continent across 6 key pillars namely market depth, access to foreign exchange, market transparency, the capacity of local investors, the macroeconomic environment, and legal standards – enforceability.
Zambia has been on a tumultuous path post-COVID-19 which affected its already existing frail fiscal posture but for landmark debt restructure with bilateral creditors that will see US$6.3 billion of its external obligation stock reorganized to 2043. This has given some fiscal reprieve to the markets with a surge of confidence driving markets.
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The AFMindex 2023 reveals a ranking of 12 places for the Southern African nation of the 28 financial markets tracked with a score of 55 out of 100 overall, unchanged from previous years. Pre–pandemic, Zambia was ranked 8th of the 20 countries tracked whose position has deteriorated over the years given a fast-evolving threat landscape due to widening political risks influencing the ballooning of its debt position.
