PassportFacts Citizenship & Residency, Verified
Searching…
No results found.

Popular searches

Browse by continent

← Country wiki

◆ AFRICA

Zambia — The First Country to Default in the Pandemic, and What That Says to Anyone Buying a Citizenship

In 2020 Zambia became the first country to default on international bonds during the pandemic, and restructuring took over three years. Essential reading for anyone about to place money with a small state.

ZAMBIA · 15.3875°S 28.3228°E ◉ Lusaka
CapitalLusaka
Population~20,600,000
CurrencyZMW
Passport rank#61 Global
Visa-free66 destinations

Overview

Zambia holds a rank-61 passport reaching 67 destinations without a prior visa. Its population is around 21.3 million, the capital is Lusaka, and the currency is the kwacha (ZMW).

Zambia has no citizenship-by-investment programme, but ✅ has permitted dual citizenship since the 2016 constitutional amendment.

📌 Before 2016 Zambia required a choice — 🔴 and that same requirement, in neighbouring Zimbabwe, pushed hundreds of thousands of people of Zambian descent into having no nationality at all.Zambia removed it.

🔴 2020 — default, and three and a half years to recover

📌 This is Zambia's contribution, and I write it at length because it is directly useful to readers of this site.

The events, stated as facts:

  • 🔴 In November 2020 Zambia missed an interest payment on international bonds and became the first country to default on sovereign bonds during the pandemic.
  • 📌 Zambia's debt was spread across different creditor groups: international private bondholders, official bilateral creditors (China being a large one), and multilateral institutions.
  • 🔴 Restructuring took over THREE YEARS, because the creditor groups had to reach agreements on comparable terms — 🔴 no group would accept worse treatment than another.
  • 📌 The process ran through a G20 common framework, and Zambia was among the first cases to use it — 🔴 so the procedure was being built while being used.
  • 🔴 Throughout, Zambia had almost no access to international capital markets, the kwacha came under pressure, and 🔴 a severe drought cut hydropower output, causing widespread power cuts and dragging on growth.

Zambia has since completed its main restructuring agreements and is in recovery, with copper output rising again.

🔴 Why I write that on a citizenship site

📌 Because most investment citizenship programmes this site covers involve GIVING MONEY TO A SMALL STATE.

🔴 The national funds of Grenada, Dominica and St Kitts take a non-refundable contribution into the state budget. 📌 Under real-estate options the asset sits in that country, its value tied to that economy.

Zambia shows that a small state in financial difficulty does NOT lose the ability to issue passports. 📌 Passports keep being issued, borders keep operating, the nationality keeps its value.

🔴 But three other things change immediately:

  1. 🔴 The currency depreciates — assets priced in local currency shrink in dollar terms.
  2. 🔴 The budget tightens — spending on infrastructure, power and public services falls, precisely when most needed.
  3. 🔴 International capital access closes — half-built real-estate projects struggle to find further funding.

📌 So the right question when weighing a programme is not "can this country service its debt" — it is:

"If this country hits financial difficulty in the next ten years, does what I paid retain its value?"

🔴 For a national fund contribution the answer is fairly clear: the money is gone, what you received is a nationality, and a nationality does not go down with a budget. 🔴 For real estate the risk sits exactly there — and that is the real reason to scrutinise real-estate options, not because they are "more complicated".

📌 That is Zambia's lesson, and it applies to every programme on this site.

📌 Copper — the single-commodity problem in metal form

📌 Zambia is among Africa's largest copper producers, and copper accounts for an overwhelming share of exports.

📌 Copper demand is rising strongly because grids, electric vehicles and data centres all consume large quantities. 🔴 But single-commodity dependence is still single-commodity dependence — 📌 the fifth variant after Algeria (gas), Guyana and Suriname (oil), and the Gulf states.

🔴 What differs from the hydrocarbon group: 🔴 mining taxation and regulation have changed repeatedly over two decades, each change affecting mining companies' long-horizon investment decisions. 📌 For anyone operating in the sector, the stability of tax policy matters as much as the rate.

Geography & economy

Zambia is landlocked, bordering eight countries — 📌 among the most-neighboured countries in Africa.

📌 Victoria Falls on the Zambezi at the Zimbabwe border is a UNESCO site. 📌 Lake Tanganyika in the north is the world's second-deepest lake, shared with Tanzania, the DR Congo and Burundi.

Economy: copper and cobalt are the pillars; also agriculture (maize, tobacco, sugar), hydropower and tourism.

🔴 Disadvantages: landlocked status raises logistics costs; 🔴 hydropower dependence turns drought into a power crisis — this has happened and directly affected production; public debt remains high despite restructuring; 🔴 and copper price swings pass straight into the budget.

As always: tax obligations here do not replace those in your country of residence.

Immigration routes & citizenship

Categories existing in law include work permits, investor permits at prescribed thresholds, residence through marriage, and a retirement category. 📌 Zambia offers incentives for investment in economic zones and priority sectors — check current thresholds and conditions.

Dual citizenship permitted since the 2016 constitutional amendment.Those who lost Zambian citizenship under the old rules may apply to regain it — 📌 significant for Zambian-descended communities in Zimbabwe and South Africa.

🔴 If anyone offers you "Zambian citizenship by investment", stop. No such programme exists.

Who should consider Zambia

It may fit if: you work in copper and cobalt mining, mining equipment, large-scale agriculture or energy — 📌 and can absorb commodity price cycles.

Not a fit if: 🔴 you are offered "Zambian citizenship by investment"; you need low logistics costs; or you need year-round reliable power.

The point to carry away:Zambia is the clearest financial lesson in this library, and it applies directly to what you are weighing.

📌 A small state in financial difficulty keeps issuing passports normally — a nationality does not go down with a budget. 🔴 But currency depreciation, budget tightening and closed capital access all hit the asset you bought there.

So when comparing two options within one programme, the question is not which is cheaper, but: does what I paid depend on this state's financial health over the next ten years.

Frequently asked questions

When did Zambia default and why did resolution take so long?

In November 2020 Zambia missed an interest payment on international bonds, becoming the first country to default on sovereign bonds during the pandemic. Restructuring took over three years because the debt was spread across creditor groups — international private bondholders, official bilateral creditors including China as a large one, and multilateral institutions — and the groups had to reach agreements on comparable terms, none accepting worse treatment.

What does a default have to do with buying citizenship?

Because most investment citizenship programmes involve giving money to a small state. Zambia shows a state in financial difficulty does not lose the ability to issue passports — passports keep being issued and the nationality keeps its value. But three other things change immediately: the currency depreciates, the budget tightens so infrastructure and power spending falls, and international capital access closes, leaving half-built real-estate projects struggling for funding.

So should one choose the donation or the real-estate option?

The right question is not which is cheaper but whether what you paid depends on that state's financial health over the next ten years. With a national fund contribution the money is gone, what you received is a nationality, and a nationality does not go down with a budget. With real estate the risk sits exactly there — the real reason to scrutinise real-estate options.

Does Zambia allow dual citizenship?

Yes, since the 2016 constitutional amendment. Before that Zambia required a choice, and a requirement of that kind in neighbouring Zimbabwe pushed hundreds of thousands of Zambian-descended people into having no nationality at all. Those who lost Zambian citizenship under the old rules may apply to regain it.

What does Zambia's economy rest on?

Copper and cobalt are the pillars, accounting for an overwhelming share of exports. Copper demand is rising strongly because grids, electric vehicles and data centres all consume large quantities. There is also agriculture including maize, tobacco and sugar, plus hydropower and tourism.

What is the specific risk of mining in Zambia?

Mining taxation and regulation have changed repeatedly over two decades, each change affecting mining companies' long-horizon investment decisions. For anyone operating in the sector, the stability of tax policy matters as much as the rate.

Why does drought become a crisis in Zambia?

Because Zambia depends heavily on hydropower. A severe drought cut hydropower output, causing widespread power cuts and dragging on growth, directly affecting production — and this occurred during the debt restructuring period.

Does Zambia have a citizenship-by-investment programme?

No. Categories in law include work permits, investor permits at prescribed thresholds, residence through marriage and a retirement category. If anyone offers you Zambian citizenship by investment, stop.

🇿🇲 Key figures Zambia Current investment thresholds, fees, processing times and requirements

Interested in Zambia?

A Viking Global Group adviser will advise on your case free of charge.

This content is for reference. Immigration rules change over time — please contact a Viking Global Group adviser about your specific case.