By: Miningmx

Zambia's mining, energy and agriculture sectors are drawing fresh investor interest as the country’s fiscal consolidation takes hold following its emergence from sovereign default, according to Citi’s country head.

Lowani Chibesakunda told Reuters she had observed growing appetite as economic stability improved, with new categories of investors entering the market for the first time, including players from the Middle East active in pharmaceuticals, technology and mining.

Copper remains the centrepiece of the investment case. Chibesakunda said rising demand driven by clean energy transition and AI data centre power requirements had kept prices bullish and focused global attention on Zambia’s resource base.

The country’s debt rehabilitation has underpinned renewed confidence. In November, S&P Global upgraded Zambia’s foreign-currency credit rating to CCC+/C from selective default, formally ending its default status. The government subsequently forecast that the budget deficit would more than halve in 2026, with economic growth targeted above 6%.

Citi acted as sole bank on a cash tender offer for Zambia’s $1.365bn in outstanding notes, which drew 97.85% participation after launching in May, as part of broader efforts to reduce long-term debt obligations.

Foreign direct investment reached $1.24bn in 2024, the highest level since 2015, according to UN trade data.

“We have seen increased interest from players coming through from the Middle East,” Chibesakunda said, adding that some mining investors were entering the Zambian market for the first time.