Zambia’s economy is on track to grow by at least 6% this year, its fastest pace since 2021, according to Finance Minister Situmbeko Musokotwane.
He made the projection during Bloomberg’s annual Africa Business Media Innovators conference, citing improved rainfall and a rebound in copper production as key drivers of the economic upswing.
Zambia, Africa’s second-largest copper producer, has seen a significant rise in metal output, which contributes over 70% of its export earnings.
Musokotwane noted earlier this year that the country is relying heavily on its mining sector to fuel economic recovery.
“If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward,” he said in January.
The country is targeting a copper output of around 1 million tons next year, with long-term ambitions to scale that up to 3 million tons.
This positive outlook follows Zambia’s emergence from a drawn-out debt restructuring process.
Stronger Growth raises the possibility of improved returns for creditors, including bondholders.
“I am confident that we will get to that 6%,” Musokotwane said.
“We just need to maintain this for 10, 15 years, positive growth every year.
I think people will begin to see that it’s not a certainty that you are born in poverty and you will end in poverty.
Things can change.”
On the monetary front, the easing of inflation is offering the country some relief.
Prices of key staples like bread and cereals have fallen, thanks to better rainfall that helped offset the effects of earlier drought conditions.
The kwacha has also rallied sharply, gaining 12% this year and making it Africa’s second-best performing currency against the US dollar in 2025.
Despite the optimism, the International Monetary Fund has issued a more cautious outlook.
It projects Zambia’s growth at 5.8% and has warned that higher-than-expected debt servicing costs have forced the government to adjust its 2025 budget with new revenue measures to maintain fiscal stability.
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