LUSAKA - Zambia has recorded its strongest level of investor confidence in nearly a decade, with the yield on the country's 10-year Government bond falling to between 16.82 and 16.84 percent, according to official market data.
The Ministry of Information and Media said the yield is the lowest recorded since May 2017, citing figures published by the Bank of Zambia and international financial market data tracked by Trading Economics.
Government said the decline reflects growing investor confidence in Zambia's economic outlook and long-term financial stability.
During Zambia's sovereign debt crisis, the yield on the same 10-year Government bond rose to around 38 percent, indicating that investors demanded significantly higher returns because of increased perceived risk.
According to the Ministry, the current yield represents a reduction of more than half from those levels, signalling improved confidence in Zambia's ability to meet its long-term financial obligations.
The Ministry attributed the improvement to several economic developments, including the successful restructuring of public debt, lower inflation, a stronger kwacha, increased foreign exchange reserves and broader macroeconomic stability.
It said these are among the key indicators closely monitored by financial markets when assessing investment risk and making long-term investment decisions.
The update was shared by the Ministry of Information and Media, with further commentary provided by Ministry spokesperson Henry Kapata.
Source: Ministry of Information and Media Zambia |