Zambia is targeting average economic growth of 7% over the next three years as the government seeks to build on progress from Zambia Debt Restructuring and move towards stronger investment, exports and job creation.
The government’s medium-term macroeconomic framework projects Zambia Economic Growth of 6.0% in 2027, rising to 7.5% in 2028 before easing slightly to 7.1% in 2029, the finance ministry said on Sunday.
According to Reuters, Finance Minister Situmbeko Musokotwane said the government wants to move beyond stabilising the economy and focus on attracting investment and expanding productive sectors including mining, energy and agriculture.
The new targets follow years of economic pressure after Zambia defaulted on its external debt during the COVID pandemic and entered prolonged negotiations with creditors.
Progress on Zambia Debt Restructuring has now given the government an opportunity to shift attention towards a new phase centred on economic expansion.
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Zambia Economic Growth Target Rises to 7%
The government’s projections show an ambitious growth path over the next three years.
Economic expansion is projected at 6.0% in 2027 before accelerating to 7.5% in 2028 and reaching 7.1% in 2029.
Taken together, the projections would put average Zambia Economic Growth at around 7% during the period.
For 2026, Zambia’s budget had projected economic growth of 6.4%.
The International Monetary Fund has a more conservative forecast, projecting growth of 4.3% for 2026.
The difference between the government and IMF forecasts highlights the uncertainty surrounding the pace of Zambia’s economic expansion even as authorities pursue stronger investment and production.
Musokotwane said the government’s focus is now moving beyond economic stabilisation towards creating conditions for greater investment, stronger exports and more jobs.
Zambia Debt Restructuring Sets Stage for Stronger Growth
The government’s economic ambitions follow a prolonged period dominated by Zambia Debt Restructuring negotiations.
Zambia defaulted on its external debt during the COVID pandemic, becoming one of the countries at the centre of concerns about sovereign debt pressures in Africa.
Musokotwane oversaw the lengthy restructuring negotiations as finance minister.
He was recently reappointed to the position following Zambia’s election last month, allowing him to continue overseeing the government’s economic programme.
Progress on Zambia Debt Restructuring is significant because high debt burdens and uncertainty over repayment arrangements can restrict governments’ fiscal options and affect investor confidence.
The government is now seeking to use greater economic stability to attract capital into sectors capable of increasing production and exports.
Mining and Energy Drive Zambia Economic Growth
Mining is expected to remain central to the government’s strategy.
Zambia is a major copper producer, giving the country an important position in global mineral supply chains.
The government also sees energy and agriculture as important sectors for supporting Zambia Economic Growth and creating employment.
Expanding production in these areas could help Zambia strengthen exports while attracting new investment.
Musokotwane said the objective is to secure more investment, boost exports and increase job creation by harnessing these sectors.
That represents a shift from the immediate task of stabilising an economy affected by debt distress towards building productive capacity.
The success of the strategy will depend on whether Zambia can convert improvements following Zambia Debt Restructuring into sustained private and public investment.
New IMF Programme Could Follow Zambia Debt Restructuring
Zambia is also seeking a new agreement with the International Monetary Fund.
The country hopes to reach an agreement on a new IMF programme before the end of the year after its previous $1.7 billion arrangement ended in January.
A new programme would come as the government works to consolidate progress made through Zambia Debt Restructuring while pursuing its higher growth targets.
The government’s projected growth rates remain stronger than the IMF’s current estimate for 2026, making economic performance an important measure of whether the new strategy is delivering the expected results.
Reaching 7% average growth would require Zambia to maintain momentum across several sectors while increasing investment and exports.
The country will also need to translate headline growth into employment and broader economic opportunities if the expansion is to deliver the outcomes outlined by Musokotwane.
What This Means For Africa
Zambia’s economic plan is significant for Africa because it illustrates the difficult transition countries face after a period of sovereign debt distress.
For several years, Zambia Debt Restructuring dominated the country’s economic agenda. The government is now attempting to move from managing debt problems towards generating stronger growth, investment and employment.
That transition matters beyond Zambia.
Several African economies continue to face high debt-servicing costs and limited fiscal space. Zambia’s experience provides an important example of what can follow once a government makes progress in restructuring unsustainable external obligations.
The next challenge is growth.
Zambia’s plan to achieve average growth of around 7% places mining, energy and agriculture at the centre of its strategy. These sectors are particularly important because they can generate export earnings, attract investment and support employment.
Copper gives Zambia an additional strategic advantage as global demand for minerals used in electricity infrastructure and other industries keeps the country connected to international commodity markets.
But stronger Zambia Economic Growth will need to extend beyond favourable projections.
The difference between Zambia’s 6.4% growth projection for 2026 and the IMF’s 4.3% forecast shows that expectations can vary significantly. Actual investment, production, exports and job creation will ultimately determine the strength of the expansion.
A new IMF agreement could also influence the next stage of Zambia’s economic programme.
If the country can combine the progress made through Zambia Debt Restructuring with investment in productive sectors, stronger exports and employment creation, its experience could offer useful lessons for other African economies attempting to move from debt stabilisation towards sustainable expansion.
For Zambia, the government has set a clear benchmark. Zambia Economic Growth is expected to average about 7% over the next three years, with the country seeking to turn financial stabilisation into a broader period of investment-led economic expansion.
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Image Credit: Bloomberg
