Zambians remain upbeat about their financial prospects despite economic pressures, according to TransUnion’s latest Consumer Pulse Study. The Q2 2025 survey found 79% of respondents optimistic about household finances over the next year, with 34% reporting higher incomes in the past three months and 38% accelerating debt repayments.

However, inflation (79%), housing costs (59%) and job security (58%) were top concerns, prompting many to cut discretionary spending and cancel non-essential services. About 35% anticipate difficulty paying bills or loans in full, with nearly half of them planning partial payments.

Credit remains a priority, with 94% viewing it as key to financial goals, though high borrowing costs and rising interest rates are deterring applications.

Fraud risk is another challenge: 76% reported being targeted by scams in recent months, though most avoided losses. Cybersecurity fears, identity theft, and payment card fraud remain top threats.

TransUnion Zambia CEO Mildred Stephenson said the findings highlight “remarkable resilience” among consumers, who are balancing optimism with prudent financial management in the face of economic headwinds.

BoZ Governor Warns Against Expecting Quick Fix for Zambia’s Economic Woes

Bank of Zambia (BoZ) Governor, Dr. Denny Kalyalya, has urged Zambians to temper expectations for a rapid turnaround in the country’s economic fortunes, warning that the complex, debt-constrained challenges facing the nation cannot be solved by a single policy intervention. Speaking during the announcement of the central bank’s decision to maintain the Monetary Policy Rate (MPR) at 14.5 percent, Kalyalya said Zambia’s recovery requires a multi-pronged, sustained approach anchored on fiscal discipline, economic diversification, and strengthened public-private partnerships.

The governor explained that while certain macroeconomic indicators have shown signs of improvement in recent months, inflation remains stubbornly high at over 13 percent, continuing to erode household purchasing power. High inflation, he noted, disproportionately impacts low and middle-income families, reducing their ability to afford essential goods and services. This inflationary pressure, combined with Zambia’s heavy external debt burden, means that the country’s economic policy space is limited and must be managed prudently.

Dr. Kalyalya identified several risks that continue to complicate Zambia’s recovery path. Chief among them are fluctuating copper prices, which affect foreign exchange earnings and budget stability, and volatile global crude oil prices, which influence fuel costs and, in turn, the cost of living. He also pointed to broader external uncertainties, including geopolitical tensions, global economic slowdowns, and unpredictable climate-related disruptions, all of which can have a direct bearing on Zambia’s trade performance and fiscal health.

Against this backdrop, Kalyalya stressed that the BoZ is prioritising inflation control over short-term growth stimulation. “We must first reduce inflation sustainably before taking on more aggressive measures to spur growth,” he said, emphasising that high inflation undermines investment confidence and long-term stability.

The governor underscored the urgent need to diversify the economy beyond its traditional reliance on copper exports, a vulnerability that has historically exposed Zambia to boom-and-bust cycles tied to commodity price swings. He called for targeted investments in agriculture, manufacturing, renewable energy, and services, noting that these sectors hold potential to broaden the revenue base and create jobs.

Kalyalya also stressed the importance of infrastructure development as a driver of competitiveness. Upgrading transport networks, energy supply, and digital connectivity, he said, will not only support industrialisation but also attract both domestic and foreign investment. However, he cautioned that these investments must be undertaken in a fiscally responsible manner to avoid further debt accumulation.

The decision to hold the policy rate steady at 14.5 percent reflects the BoZ’s cautious balancing act, keeping borrowing costs high enough to curb inflation, while avoiding measures that could stifle already fragile economic activity. This stance signals a recognition that quick-fix solutions, such as aggressive monetary easing or rapid spending increases, could reignite inflation and undermine stability.

Economists have generally welcomed the governor’s steady-handed approach, describing it as pragmatic given Zambia’s fiscal constraints and vulnerability to external shocks. While acknowledging that the policy stance offers little immediate relief to struggling households, they argue that the priority must be to stabilise the economy and restore investor confidence as a foundation for long-term resilience.

Kalyalya’s remarks come at a politically sensitive time, as the government continues to navigate the implementation of debt restructuring agreements and economic reform programmes. The central bank’s message aligns closely with the need for policy continuity and credibility, both of which are essential for sustaining donor confidence and private-sector investment.

However, the slow pace of tangible economic relief poses political challenges. With general elections on the horizon in 2026, the government faces pressure to deliver visible improvements in living standards. Balancing these political demands with the realities of macroeconomic management will require careful coordination between fiscal authorities and the central bank.

SADC Trade Revolution: Zambia & Botswana Lead Kazungula Corridor Upgrade

Zambia and Botswana have agreed to accelerate the expansion of trade infrastructure at the Kazungula Bridge, a strategic gateway linking Southern Africa’s transport corridors. The decision follows high-level bilateral talks aimed at boosting cargo throughput, cutting delays, and unlocking new trade opportunities for both countries.

Transport and Logistics Minister Frank Tayali confirmed that the agreement will focus on upgrading customs systems, expanding parking facilities for heavy trucks, and introducing a joint border management framework. This, he said, is expected to reduce the average crossing time for freight from several days to just a few hours, a move that could save businesses millions in annual transport costs.

The Kazungula Bridge, completed in 2021, was built to ease congestion at border points and provide a faster, more reliable route for goods moving between Zambia, Botswana, and the broader Southern African region. However, trade volumes have exceeded initial forecasts, leading to capacity strains and calls from stakeholders for immediate improvements.

Tayali emphasised that the project will not only enhance Zambia’s competitiveness as a regional transit hub but also support domestic economic growth by facilitating quicker exports of agricultural produce, minerals, and manufactured goods. “Our farmers, miners, and industrialists will all benefit from faster, cheaper access to markets,” he said.

The minister noted that the upgrades are part of a broader government strategy to modernise transport infrastructure across Zambia, including planned investments in road rehabilitation, railway revival, and the digitisation of freight clearance processes. He added that strong collaboration with Botswana will ensure that operational standards at Kazungula meet international best practices.

Economic experts view the corridor’s expansion as essential to Zambia’s regional trade ambitions. They argue that the country’s geographic location offers a natural advantage in serving as a land-linked bridge between key markets in Southern and Central Africa, but this potential can only be realised with seamless border operations.

The two governments have also agreed to explore joint investment opportunities in logistics parks, warehousing, and value-added processing facilities near the border. Such initiatives could create jobs, attract private sector investment, and generate new streams of revenue for both countries.

Tayali assured the public that environmental considerations will be integrated into the expansion plans, with feasibility studies to assess potential impacts on the surrounding ecosystem and local communities. He further indicated that financing options, including public-private partnerships and concessional loans, are being considered to fund the upgrades without overburdening national budgets.

The announcement has been welcomed by trucking associations and freight forwarders, who say the reforms will resolve persistent bottlenecks that have undermined the efficiency of one of the region’s most important trade arteries. The timeline for the initial phase of works is expected to be confirmed in the coming months.

ZCCM-IH Delivers K91 Million Windfall to Government Treasury

ZCCM Investments Holdings (ZCCM-IH) has announced the payment of K91 million in dividends to the Zambian government, reinforcing its role as a key contributor to the national treasury. The announcement was made during a formal handover ceremony attended by government officials and company executives, who underscored the importance of the payment for funding public services and national development programmes.

Speaking at the event, ZCCM-IH Board Chairperson Dolika Banda said the dividend reflects the company’s commitment to delivering value to its shareholders, particularly the government which is the majority shareholder. She noted that the payment was the result of improved operational efficiency, prudent management, and strategic investments that have yielded higher returns across the company’s diverse portfolio.

Minister of Finance and National Planning Situmbeko Musokotwane, who received the dividend on behalf of the government, commended ZCCM-IH for its performance. He stressed that revenues from state-owned enterprises play a vital role in supporting the national budget, reducing reliance on external borrowing, and funding essential sectors such as health, education, and infrastructure.

ZCCM-IH’s portfolio spans mining, energy, and other strategic sectors, with significant holdings in copper mining ventures. The company has benefited from strong commodity prices in recent years, as well as from its focus on enhancing operational oversight of its investee companies. By strengthening governance and demanding better performance from its partners, ZCCM-IH has been able to maximise shareholder returns while promoting sustainable development in the communities where it operates.

In her remarks, Ms. Banda highlighted the company’s emphasis on long-term growth rather than short-term gains. She said ZCCM-IH is reinvesting a portion of its earnings into diversification projects, including gold and manganese mining, renewable energy, and industrial manufacturing. These investments are expected to broaden the revenue base and reduce exposure to fluctuations in the copper market.

The government has welcomed these efforts, saying that diversification is key to building a resilient economy capable of withstanding external shocks. Minister Musokotwane emphasised that ZCCM-IH must continue to align its strategies with national development priorities, particularly in creating jobs, fostering skills transfer, and supporting local suppliers.

The K91 million dividend follows a series of other payments made in recent years, signalling a sustained upward trend in the company’s financial contributions. Analysts say this trend could improve investor confidence, both in ZCCM-IH and in Zambia’s broader mining sector. Strong financial performance by state-linked companies is often viewed as an indicator of stability and good governance, which can help attract more foreign direct investment.

However, challenges remain. The mining sector is still exposed to global market volatility, changes in tax regimes, and operational risks such as equipment failures and labour disputes. ZCCM-IH has pledged to mitigate these risks through careful planning, technological upgrades, and proactive engagement with stakeholders.

Beyond the balance sheet, ZCCM-IH has also been active in corporate social responsibility. The company has funded health initiatives, educational scholarships, and infrastructure projects in mining communities. This approach, executives say, is part of its mandate to balance profitability with social impact, ensuring that resource wealth benefits the broader population.

The handover of the dividend was accompanied by renewed calls for other state-owned enterprises to follow ZCCM-IH’s example in financial transparency and shareholder returns. Officials stressed that consistent dividend payments are a sign of both commercial success and accountability to the public.

As Zambia works to strengthen its fiscal position, dividends from companies like ZCCM-IH will remain an important revenue stream. The latest payment is a reminder that, when effectively managed, state-linked enterprises can be powerful tools for national development, delivering both economic value and tangible benefits to citizens.