Zambia’s Public Debt Remains a Major Challenge to Budgeting, Warns CTPD

The Centre for Trade Policy and Development (CTPD) has raised alarms regarding Zambia’s public debt, describing it as a significant barrier to effective national budgeting, despite the government’s successful restructuring of over 70% of its external debt.

At the launch of CTPD’s 2025 national budget analysis in Lusaka, Vice Board Chairperson Brian Mwiinga emphasized that the country’s debt burden is profoundly impacting the national budget. 

He revealed that a staggering 80% of the total allocation for general public services is earmarked for debt servicing. This heavy focus on repaying debt, Mwiinga cautioned, continues to stifle the government’s capacity to invest in vital sectors such as health, education, and infrastructure, which are essential for fostering long-term national growth.

While Mwiinga acknowledged the government’s increased allocations to sectors such as social protection, agriculture, mining, and rural electrification—efforts aimed at enhancing resilience and stimulating economic growth—he also pointed out that significant structural challenges remain.

In the energy sector, Mwiinga commended the government’s commitment to rural electrification but criticized the lack of immediate solutions to the ongoing energy crisis and insufficient investment in renewable energy sources. 

He urged for heightened funding in the mining sector, particularly for mineral exploration, to help Zambia achieve its ambitious target of producing 3 million metric tons of copper by 2031.

Turning to agriculture, Mwiinga expressed concern over the concentration of funding on programs like the Farmer Input Support Program (FISP) and the Food Reserve Agency (FRA), which he believes leaves critical areas such as irrigation and mechanization underfunded. These areas are crucial for enhancing agricultural productivity in the nation.

Adding to Mwiinga’s concerns, CTPD Public Finance Researcher Elijah Mumba warned that the government may struggle to meet its targets for the 2025 inflation rate and Gross Domestic Product (GDP) growth under the current economic conditions.

The CTPD’s findings highlight the urgent need for comprehensive strategies to address Zambia’s public debt crisis while simultaneously fostering sustainable economic growth.