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.

Zesco Cuts Back on Exports to Ease Domestic Power Strain

ZESCO, Zambia’s state-owned power utility, has announced a significant reduction in electricity exports to neighbouring countries in order to prioritise domestic consumption. The move follows mounting public frustration over load-shedding, which has increasingly disrupted households and businesses, as well as a broader acknowledgment of the country’s strained generation capacity.

Officials explained that while exports have been an important source of foreign exchange earnings, ensuring steady supply for Zambian consumers has become the government’s overriding priority. This shift reflects the growing pressure on authorities to demonstrate responsiveness at a time when rolling blackouts have undercut economic productivity and eroded public confidence in energy planning.

The utility’s decision comes against a backdrop of reduced generation capacity driven largely by low water levels in key hydroelectric reservoirs. These facilities, which contribute the bulk of Zambia’s electricity, have struggled under erratic rainfall patterns exacerbated by climate variability. ZESCO management indicated that load curtailment for domestic users had become politically and economically untenable, particularly as frustration boiled over in affected communities and urban centres.

For many businesses, inconsistent power has meant scaled-down operations, higher costs from backup generators, and lost production time. For households, especially in low-income areas, load-shedding has translated into cold meals, interrupted studies, and deteriorating food storage. The cumulative effect has been a wave of dissatisfaction that has spilled into public debate, with calls for government to act decisively.

By trimming electricity exports, ZESCO seeks to ease this pressure. However, analysts warn the measure, though immediately popular, only scratches the surface of deeper structural problems. Zambia’s energy mix remains heavily dependent on hydroelectricity, leaving the country vulnerable to droughts and shifting climate patterns. Unless new generation capacity from solar, thermal, and other renewable projects is brought on stream, officials risk fighting a recurring cycle of shortages.

There are also financial implications. Electricity exports to regional markets, particularly through the Southern African Power Pool, have been a steady source of foreign revenue for ZESCO. Reducing this flow may provide short-term political relief but comes at the expense of forex earnings. Balancing domestic needs with financial sustainability is thus a delicate act, particularly at a time when Zambia is working to consolidate economic reforms and strengthen external reserves.

The decision highlights the policy tension between addressing citizens’ immediate concerns and pursuing long-term energy sector reforms. While cutting exports demonstrates sensitivity to public frustration, the durability of the measure depends on how quickly Zambia can diversify its power sources and expand investment in generation.

Ongoing projects, including solar plants and thermal expansions, are touted as key to stabilising supply in the medium term. Yet, questions remain about timelines, financing, and whether implementation can keep pace with rising demand. In this context, the government faces the dual challenge of delivering urgent relief while maintaining credibility on its energy promises.

Observers note that clear communication will be vital in the weeks ahead. Transparent updates on generation levels, load management, and the progress of new projects can help temper frustration and build confidence. Citizens and businesses may accept hardship if they believe solutions are truly underway, but opaque handling risks deepening mistrust.

Ultimately, ZESCO’s export cut is a political as much as a technical decision. It signals that government recognises the centrality of electricity to social stability and economic recovery. Whether it marks the start of a coherent energy turnaround or simply a temporary reprieve will depend on what follows: investment, innovation, and the discipline to turn pledges into power at the socket.

Sishuwa Petitions President Over “Unconstitutional” ECZ Composition

Prominent academic and governance advocate Dr. Sishuwa Sishuwa has raised alarm over what he terms the “unconstitutional composition” of the Electoral Commission of Zambia (ECZ), urging President Hakainde Hichilema to urgently address the matter or risk undermining the credibility of the forthcoming elections.

In a strongly worded press statement issued on 25 September 2025, Dr. Sishuwa argued that the current four-member composition of the ECZ falls short of the constitutional requirements of inclusivity, regional balance, youth representation, and participation of persons with disabilities.

According to him, three of the current commissioners — Mrs. Frances Mwangala Zaloumis, Maj. Gen. Vincent Mbaulu Mukanda (Rtd), and Ms. Ndiyoi Muliwana Mutiti — all hail from Western Province, while the fourth, Mr. McDonald Chipenzi, comes from Southern Province. This, he said, leaves eight provinces without representation and excludes key demographic groups such as the youth (defined in law as under 35 years) and persons with disabilities.

Dr. Sishuwa contended that this arrangement violates several provisions of the Constitution, including Articles 259, 173, 23, 45, and 46, which collectively demand regional diversity, gender balance, inclusivity, and the fair participation of all groups in public institutions. “This exclusion undermines public confidence in the ECZ at a critical moment in our democracy,” he stated.

Through his legal representatives at Simeza | Sangwa & Associates, Dr. Sishuwa has since written to President Hichilema demanding corrective measures within 14 days. The lawyers warned that failure to act would compel their client to seek redress from the Constitutional Court. They are seeking a declaration that the current ECZ composition is unconstitutional and an order compelling government to ensure compliance with the constitutional provisions before the upcoming elections.

The matter touches on the integrity of Zambia’s electoral process, with critics warning that the exclusion of certain provinces and social groups could raise questions of bias and diminish public trust. “Every citizen has a stake in ensuring that our electoral body is representative, inclusive, and constitutional,” Dr. Sishuwa emphasised in his statement.

The full press statement and the detailed letter of demand to the President, copied to the Attorney General, the Speaker of the National Assembly, and the Chairperson of the ECZ, are below and attached images below

Press Statement
On the Unconstitutional Composition of the Electoral Commission of Zambia

Today, I wish to draw public attention to a matter of grave constitutional importance: the current composition of the Electoral Commission of Zambia (ECZ).

The Constitution is the supreme law of our land (Article 1). It requires that every authority, including the President, respect, uphold, and defend it (Article 2). National values and principles such as inclusiveness, equity, and equality (Articles 8 and 9) must guide the way our public institutions are constituted.

Yet, the present composition of the ECZ does not reflect these constitutional requirements. The Commission currently comprises:
(a) Mrs Frances Mwangala Zaloumis, Chairperson (Western Province)
(b) Maj. Gen. Vincent Mbaulu Mukanda (Rtd), Commissioner (Western Province)
(c) Ms Ndiyoi Muliwana Mutiti, Commissioner (Western Province)
(d) Mr McDonald Governor Chipenzi, Commissioner (Southern Province)

This means three Commissioners come from Western Province and one from Southern Province, leaving eight provinces wholly unrepresented. None of the Commissioners is a youth (defined in Article 266 as below 35 years). None is a person with a disability.

This composition violates:
(a) Article 259, which requires appointments to reflect regional diversity, gender balance, and the inclusion of youths and persons with disabilities;
(b) Article 173, which requires inclusivity and equal opportunity in public service;
(c) Article 23, which prohibits discrimination; and
(d) Articles 45 and 46, which guarantee a fair electoral system and every citizen’s right to free and fair elections.

With elections only months away, this exclusion undermines public confidence in the ECZ at a critical moment in our democracy.

Through my advocates, I have written to His Excellency, the President of Zambia, Mr Hakainde Hichilema, requesting that the composition of the ECZ be regularised within fourteen (14) days so that it reflects Zambia’s diversity and complies with the Constitution. Should this not be done, I will seek the intervention of the Constitutional Court.

This is not about politics or personalities. It is about defending the Constitution and protecting the credibility of our elections. Every citizen has a stake in ensuring that our electoral body is representative, inclusive, and constitutional.

Issued by:
Dr. Sishuwa Sishuwa
25 September 2025

Simeza | Sangwa & Associates
Our Ref: S1344/PS/2025
25 September 2025

By Hand & Email
His Excellency
Mr Hakainde Hichilema
President of the Republic of Zambia
State House
Independence Avenue
P.O. Box 30135
LUSAKA

Your Excellency,

Re: Request for Regularisation of the Composition of the Electoral Commission of Zambia in line with Articles 259, 173, 23 and related provisions of the Constitution

We act for Dr. Sishuwa Sishuwa, a citizen of the Republic of Zambia who is deeply committed to the promotion of constitutionalism and democratic governance.

Our client has observed with concern that the present composition of the Electoral Commission of Zambia (ECZ) does not comply with the inclusivity and equality requirements of the Constitution. In particular, it appears inconsistent with the following provisions:

1. Articles 1 and 2, which establish the supremacy of the Constitution and impose a duty on every authority, including the President, to respect, uphold, and defend it.

2. Articles 8 and 9, which set out and require the application of national values and principles such as equity, equality, inclusiveness, and good governance.

3. Article 173, which prescribes public service values and principles, including merit, impartiality, inclusivity, accountability, and equal opportunities for both genders, all youths, and persons with disabilities.

4. Article 259, which obliges the appointing authority to ensure, as far as practicable, that appointments reflect regional diversity, gender balance, and the inclusion of youths and persons with disabilities.

5. Article 23, which prohibits discriminatory treatment in the performance of public functions, including exclusion on the basis of tribe, place of origin, race, gender, or disability.

6. Articles 45 and 46, which guarantee an electoral system that is free and fair, impartial, and inclusive, representative of various groups, and which secure every citizen’s right to free and fair elections.

7. Article 266, which defines a youth as a person below thirty-five (35) years of age.

Current Composition of the ECZ
At present, the Commission comprises:
(a) Mrs Frances Mwangala Zaloumis, Chairperson (born May 1947) – Western Province
(b) Maj. Gen. Vincent Mbaulu Mukanda (Rtd), Commissioner – Western Province
(c) Ms Ndiyoi Muliwana Mutiti, Commissioner (born 25 March 1961) – Western Province
(d) Mr McDonald Governor Chipenzi, Commissioner (born 15 July 1973) – Southern Province

This composition reflects an over-concentration of appointees from two provinces (three from Western and one from Southern), leaving eight provinces without representation. It also excludes youths (below 35 years, per Article 266) and persons with disabilities altogether.

Constitutional Concerns Identified
This state of affairs demonstrates clear non-compliance with the Constitution:

1. Regional diversity is absent, contrary to Article 259.

2. Youth representation is wholly excluded, contrary to Articles 259, 173, 45 and 46.

3. Disability representation is absent, contrary to Articles 259, 173, 23, 8 and 9.

Taken together, these defects undermine the supremacy of the Constitution (Art. 1), breach the duty to uphold it (Art. 2), disregard national values (Arts. 8 and 9), violate appointment standards (Arts. 173 and 259), infringe equality and non-discrimination (Art. 23), and undermine the fairness and legitimacy of the electoral system and the right to vote (Arts. 45 and 46).

Importance of Timely Action
With general elections only months away, the legitimacy of the ECZ is of paramount importance. An ECZ that visibly reflects Zambia’s regional diversity, gender equality, and meaningful inclusion of youths and persons with disabilities will command broader public trust, reduce perceptions of bias, and avert disputes about its credibility at this critical moment.

Request
In view of the issues outlined, we respectfully request Your Excellency to:

1. Acknowledge the constitutional concerns relating to the present composition of the ECZ; and

2. Take appropriate steps, within fourteen (14) days, to regularise the Commission so that it reflects:
   (a) the regional diversity of the Republic;
   (b) equitable gender balance; and
   (c) the meaningful inclusion of youths and persons with disabilities, as envisaged by Articles 259, 173, 23, 45, 46 and related provisions of the Constitution.

Notice of Possible Legal Action
In the event that no corrective action is taken, our client may have no alternative but to seek the intervention of the Constitutional Court. The reliefs likely to be pursued include:
(a) A declaration that the current composition of the ECZ is unconstitutional;
(b) Orders compelling compliance with Articles 259, 173, 23, 45 and 46 of the Constitution prior to the conduct of the forthcoming elections; and
(c) Such consequential reliefs, including costs, as the Court may deem just.

We trust, however, that this matter will receive Your Excellency’s urgent and favourable attention in the national interest, thereby avoiding the need for recourse to litigation.

Yours faithfully,
Simeza Sangwa & Associates

Cc: The Attorney General
The Speaker of the National Assembly
The Chairperson, Electoral Commission of Zambia
Dr. Sishuwa Sishuwa

Hichilema Calls for Unity and Development in Meeting with Chiefs

President Hakainde Hichilema has reaffirmed his administration’s partnership with traditional leaders, urging them to continue fostering unity and stability as the foundation for Zambia’s development agenda. Addressing hundreds of chiefs from across the country at the Mulungushi International Conference Center, he stressed that Zambia’s prosperity depends on collective purpose, peace, and sustained hard work.

The Head of State described the gathering as both cordial and frank, noting that it was an opportunity to exchange views openly while reinforcing a shared national mission. He reminded traditional leaders that their role extends beyond preserving culture and heritage, pointing out that they are central to nurturing harmony within their chiefdoms and bridging divides across the nation.

Hichilema emphasized that unity is indispensable for channeling national energy into growth. “Our Chiefs should continue fostering love and harmony within their chiefdoms and across the nation, because only in unity can we truly build a prosperous Zambia,” he told the assembly.

Reviewing his government’s performance over the past four years, the President highlighted achievements he considers critical to laying a strong economic foundation. He cited the restoration of the rule of law, the successful restructuring of Zambia’s external debt, and the rebuilding of business credibility and investor confidence. According to him, these milestones have repositioned the country on a path toward sustainable growth.

Yet he cautioned that development cannot thrive in an environment of discord or complacency. Peace, unity, and hard work, he said, must remain the driving forces of national transformation. He urged traditional leaders to see themselves not as adversaries of government but as partners in charting a shared future.

Part of that future, he added, rests on reviving agriculture at community level. Hichilema called for renewed effort to encourage farming households to work harder while adopting a culture of storing surplus harvests for consumption between seasons. Such resilience, he argued, would reduce hunger, stabilize families, and improve long-term food security.

The President concluded by underscoring the administration’s mission to uplift all communities without leaving anyone behind. He reiterated that traditional leaders have an enduring role in mobilizing citizens, fostering unity, and reinforcing values of self-reliance and discipline that underpin national progress.

By positioning chiefs as development partners and linking unity with economic stability, Hichilema is not only reaffirming the government’s policy direction but also appealing directly to the grassroots through trusted custodians of tradition. The message reflects his broader strategy of building consensus around Zambia’s reform path and ensuring that reforms translate into tangible benefits for households across the country.