President Hakainde Hichilema has acknowledged progress in Zambia’s economic recovery, pointing to stabilisation of the kwacha, a decline in inflation, and the completion of the International Monetary Fund’s Extended Credit Facility Programme.
According to a press release issued by the Office of the President, inflation fell into single digits for the first time since August 2023, dropping to 9.4 percent in January 2026 from 11.2 percent the previous month. The reduction was described as a sign of easing pressure on household budgets.
The President expressed appreciation to Zambians for what the statement described as patience, resilience, and continued support throughout the country’s economic recovery efforts. The progress was attributed to fiscal discipline and structural reforms implemented over recent years.
The statement indicated that Zambia’s recent economic gains follow the successful conclusion of the IMF-supported programme, with the President acknowledging the Fund’s role in supporting the reform agenda. It noted that the government intends to build on the foundations established under the programme as it pursues continued economic stabilisation and growth.
The release recalled that Zambia was in sovereign debt default in 2021, contrasting that position with what it described as the country’s current trajectory toward economic recovery and improved stability. It stated that the past four years were dedicated to implementing reforms intended to restore macroeconomic stability, strengthen public finances, and support sustainable growth.
The IMF was cited as confirming Zambia’s positive economic outlook, including a projected real GDP growth rate of 5.8 percent in 2026. The statement also reported a reduction in public debt, noting that debt levels declined from 112 percent of GDP in 2021 to a projected 78 percent in 2025.
According to the release, lower debt levels have contributed to reduced interest payments, creating fiscal space for increased spending on public services and social programmes. The statement indicated that this shift has allowed more resources to be directed toward clinics, schools, and road infrastructure, with the President linking debt relief to improved national investment capacity.
The press release also referenced increased government investment in social and development initiatives, including the Farmer Input Support Programme (FISP), free education, expanded Constituency Development Fund (CDF) allocations, and the reintroduction of university bursaries. These measures were presented as part of broader efforts to strengthen livelihoods and expand access to essential services.
The President acknowledged that economic recovery remains ongoing and stated that the reform process is not yet complete. The statement noted that work remains in areas such as job creation, energy reliability, and expanding opportunities for young people.
The release further emphasised that lower debt and improved fiscal space can contribute to long-term national development, linking debt reduction to the ability of families to invest in education and future opportunities rather than being constrained by financial obligations.
The statement encouraged Zambians to continue working with the government as it seeks to translate macroeconomic gains into broader employment opportunities and improved living conditions across the country.
The press release was issued by Clayson Hamasaka, Chief Communications Specialist at State House, and dated 29 January 2026. Click link below.
PRESIDENT HICHILEMA THANKS ZAMBIANS AS ECONOMIC REFORMS DELIVER, 29TH JANUARY,2026

