Zambia Unveils K253.1 Billion 2026 Budget to Consolidate Economic Gains
Lusaka, 26 September 2025
Zambia has unveiled a K253.1 billion national budget for 2026, setting out an ambitious agenda to consolidate the country’s economic and social gains while maintaining fiscal discipline. Finance and National Planning Minister Dr. Situmbeko Musokotwane presented the budget to the National Assembly on Friday under the theme: “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia.”
Dr. Musokotwane said the 2026 budget builds on the UPND government’s achievements since 2021, citing stronger economic growth, successful debt restructuring, expansion of free education, and a scaled-up Constituency Development Fund (CDF) as key milestones that have changed Zambia’s economic narrative.
Macroeconomic Outlook and Fiscal Performance
Zambia’s economy grew by 3.8 percent in 2024 and is projected to expand by 5.8 percent in 2025, supported by increased mining activity, agricultural recovery and a strong information and communication technology sector. Over the past four years, average annual growth stood at 5.2 percent, up from 1.6 percent in the four years prior to 2021.
Inflation has declined from 16.7 percent in December 2024 to 12.3 percent, aided by a bumper maize harvest, Kwacha appreciation and reduced fuel prices. Fiscal discipline has seen deficits narrow from 9 percent of GDP in 2021 to 3.5 percent in 2024, while gross international reserves increased to US $4.9 billion, covering 4.8 months of imports.
For 2026, the government has set targets of 6.4 percent GDP growth, inflation within 6–8 percent, a fiscal deficit of 2.1 percent of GDP, and domestic revenue rising to 22.3 percent of GDP.
Budget Financing and Allocations
The K253.1 billion budget, representing 27.4 percent of GDP, will be financed through K206.5 billion in domestic revenue, K12.1 billion in grants, and K34.5 billion in borrowing.
The largest share, 36.6 percent (K92.6 billion), goes to General Public Services, mainly for debt servicing: K52 billion for domestic debt and K21.7 billion for external debt. Economic Affairs receives 23.2 percent (K58.6 billion), with major investments in agriculture, road infrastructure, mining, energy and tourism.
Education is allocated K33 billion (13 percent), Health gets K26.1 billion (10.3 percent), while Social Protection receives K15.7 billion (6.2 percent), including K7.6 billion for the Social Cash Transfer programme.
Sector Priorities
Mining: Output is projected to surpass one million tonnes of copper in 2025, driven by major expansions at First Quantum’s S3 project, Barrick Lumwana, KCM, Mopani, and new mines like Mingomba and Kitumba. Artisanal mining is expanding, with new marketing centres and regulatory support.
Agriculture: Government aims to increase maize output to 10 million tonnes by 2031, roll out e-voucher input systems nationwide, and strengthen irrigation and seed production. Livestock compartments are being expanded to tap export markets.
Energy: To tackle shortages, 1,500 MW of solar and 300 MW of thermal power will be added in 2026, increasing the share of non-hydro renewables to 33 percent. Rural electrification projects continue.
Transport: Key road, rail and airport upgrades continue, including the Lusaka–Ndola Dual Carriageway, feeder roads and regional corridors like TAZARA and Lobito.
Tourism and Manufacturing: International arrivals doubled to 2.2 million in 2024. Manufacturing has attracted over US $4 billion in investments across economic zones, creating thousands of jobs.
Human and Social Development
The budget maintains free education, which has seen an additional 2.3 million learners enrolled since 2022, alongside the recruitment of over 42,000 teachers and the completion of hundreds of schools.
In health, over 18,000 health workers have been recruited, 282 health facilities built, and essential drug availability has improved to 90 percent. Social protection coverage continues to expand, with 1.5 million households expected to benefit from cash transfers in 2026.
Environmental Sustainability and Governance
The budget strengthens Zambia’s climate resilience, with US $150 million raised through green bonds for solar projects, expanded weather monitoring systems, and carbon market initiatives. Fiscal reforms, tax administration changes, debt management strategies, and anti-corruption legislation remain central to the governance agenda.
Looking Ahead
Dr. Musokotwane said Zambia is moving from crisis management to sustainable growth. “The measures already taken since we came into office and those that will follow are designed to take our economy to a level not experienced in our country before,” he told Parliament.
The 2026 budget now awaits parliamentary deliberation.