Zambia's election puts debt recovery and economic growth in focus

Zambia's election is being closely watched by investors, who see it as a test of whether the country can maintain economic stability and move beyond its debt crisis.

Zambia became the first sovereign nation to default during the COVID-19 pandemic, making it a key case study for the G20-backed debt relief process. Since then, the government has reached agreements with several creditors, but some private lenders remain outside the restructuring deal, continuing to weigh on the country's credit outlook.

Investors are now looking to the next government to secure a new IMF programme focused on economic growth rather than crisis management. The previous IMF facility ended in January.

Copper, Zambia's main export, is also at the center of economic hopes. Authorities have pledged to triple annual copper production from around one million tonnes, but challenges remain, including new local content rules and an unreliable power supply.

Analysts say Zambia's growth prospects will depend on securing a new IMF agreement, resolving outstanding creditor issues, improving efficiency in the copper sector and maintaining fiscal discipline.

For markets, the election is not only about politics—it is about whether Zambia can turn years of financial turmoil into a new era of sustainable growth.