By Linda Soko Tembo
The Finance and National Planning Minister, Dr. Situmbeko Musokotwane, unveiled the 2026 national budget amounting to over K253 billion, with a pledge to accelerate job creation, infrastructure development, and economic resilience.
To support grassroots development, Dr. Musokotwane announced an increase in the Constituency Development Fund (CDF) to K6.2 billion. This translates to K40 million per constituency, up from K36.1 million in 2025—an increment of K3.9 million per constituency.
Presenting the budget on Friday, 26 September, under the theme “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia”, Dr. Musokotwane said the fiscal plan aims to build on recent progress while steering the country towards inclusive and sustained growth. He emphasised government’s commitment to grow the economy to levels not seen before, despite shocks such as COVID-19 and the 2024 drought.
He projected economic growth at 6.4 percent in 2026, compared to an average of 5.2 percent over the past four years. Inflation has dropped from 16.7 percent in 2024 to 12.3 percent, with expectations of falling further into the Bank of Zambia’s 6–8 percent target range. He also noted that the Kwacha appreciated by 14.7 percent this year, driven by increased mining foreign exchange inflows and a tight monetary policy stance.
“In?ation has declined to 12.3 percent this month. This largely reflects lower food prices due to the bumper maize harvest of 3.7 million metric tonnes, appreciation of the Kwacha, reduced fuel prices, and the impact of the tight monetary policy stance,” he said.
Dr. Musokotwane highlighted growth in key sectors such as mining, agriculture, energy, education, and health. Copper output rose to 820,676 metric tonnes in 2024, with the country targeting one million tonnes in 2025 and a long-term goal of three million tonnes annually by 2031.
In agriculture, a bumper maize harvest of 3.7 million tonnes was recorded in the 2024/2025 farming season. Government now plans to raise maize production to 10 million tonnes, focusing on export-oriented surplus.
In the energy sector, investment in solar and thermal power is being accelerated to address drought-induced electricity shortages. An additional 1,800 megawatts is expected by 2026, with non-hydro sources projected to account for 33 percent of generation capacity.
Since 2022, government has recruited 42,000 teachers and 18,000 health workers. In 2026, an additional 3,500 teachers and 2,500 health workers will be employed. Drug availability in public facilities has improved to 90 percent, while more than 280 health facilities have been completed.
The health sector has been allocated K26.2 billion (10.3% of the budget), including K6.4 billion for drug procurement—a 30 percent increase from 2025 to cover gaps left by withdrawn donor support.
On social protection, the Social Cash Transfer programme will reach 1.5 million households in 2026, while more than 2.4 million people have already benefited from the drought-response Cash-for-Work programme.
The K253.1 billion budget represents 27.4 percent of GDP, with K206.5 billion expected from domestic revenue and K12.1 billion from grants. The remainder—K34.5 billion—will be financed through domestic and external borrowing. A significant share will go to debt servicing: K52 billion for domestic debt and K21.7 billion for external repayments.
Dr. Musokotwane cited Zambia’s successful restructuring of 94 percent of eligible external debt under the G20 Common Framework. He also stressed new priorities, including investment in green energy, carbon markets, and sustainable agriculture, alongside measures to combat plastic pollution and curb the illegal use of mercury in mining.
While noting progress, he cautioned that unemployment, poverty, and productivity gaps remain pressing.
“Development has no finishing line. Now is the time to push the country to the next level,” he said.
END.
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