Steady Growth and Fiscal Gains Mark Zambia’s Q2 2025, But Challenges Persist
Zambia’s economy recorded steady improvements in the second quarter of 2025, supported by a stronger kwacha, easing inflationary pressures and increased output in key sectors with primary sectors ticking positive direction.
Mining and agriculture drove growth, with copper production rising significantly and a record maize harvest strengthening food security.
Business confidence improved, backed by investments in infrastructure and renewable energy, notably the commissioning of the 100 MW Chisamba Solar Plant.
Fiscal consolidation also advanced, with debt-to-GDP projected to fall slightly below 100 percent for the first time in seven years, while the IMF’s approval of the fifth program review unlocked US$184 million in concessional financing.
Despite all these gains, challenges remain. Environmental risks, particularly the recent Kafue River pollution, and continued reliance on copper exports highlight the need for economic diversification, stronger climate resilience and strict fiscal discipline.
Zambia enters the second half of 2025 with cautious optimism, balancing growth momentum with the need for structural reforms to ensure long-term stability and inclusive development.
