THE Zambia Chamber of Mines (ZCM) says Government should to take advantage of the positive sentiment that the upgrade of sovereign local currency issuances by Fitch has demonstrated
Last week, the Fitch Ratings Agency upgraded Zambia’s Long-term Local-Currency Issuer Default Rating (IDR) to ‘CCC’ from ‘CC’ and also affirmed Zambia’s Long-Term Foreign-Currency (LTFC) IDR at ‘RD’.
The Agency said the upgrade reflects that the government has continued to service its local currency debt and has made no indication that it plans to include domestic debt in any potential debt restructuring.
ZCM President Godwin Beene welcome the rating but was quick to say government should to take advantage of the opportunity to put the industry back on the growth path.
“This upgrade is an opportunity to leverage the record bullish copper demand outlook to build even more momentum and seize control of the market narrative,” he said.
Dr Beene said the upgrade by Fitch is a great opportunity for Zambia to latch onto this positive assessment by a major international investment house, which will be a boon for both local and local and international investors.
“There has never been a better moment for Government to reset the narrative than now. By removing the impediments to investment in the mining sector, Government can lock in a solid production increase outlook upon which to base the restoration of broad-based economic growth,” Dr Beene emphasised.
He explained that Zambia has always had an opportunity to attract world class mining investment into its internationally renowned mineral exploration and production potential, which the world mining investment community views with continuing interest.
“It is also a good opportunity for local potential mining investors to showcase their projects on the world mining stage on the back of this favourable rating,” he said.