Zambia Commits to Consolidating Gains in 2026 Budget
Zambia has set out an ambitious economic and social agenda for 2026, with Government pledging to consolidate recent gains and translate reforms into tangible improvements in the lives of ordinary citizens.
In a reflection on the 2026 National Budget theme, “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia,” Minister of Finance and National Planning Dr Situmbeko Musokotwane, MP, described the Budget as a national promise rooted in stability, inclusion and long-term resilience.
Dr Musokotwane said the theme signals Zambia’s continued transition from a period of economic turbulence towards macroeconomic stability and shared prosperity, emphasising that the focus for 2026 is to protect hard-won reforms and ensure they deliver real, measurable outcomes for households and businesses.
“The 2026 Budget is about consolidating gains and safeguarding them so that they improve everyday life for ordinary Zambians,” he said, adding that prosperity must be inclusive, resilient to shocks and fairly distributed across society.
He noted that implementation of the 2026 Budget officially began on 1 January 2026, underscoring Government’s commitment to transparency and sustained public engagement. As part of this process, the Ministry of Finance and National Planning will convene a Townhall Meeting on 29 January, bringing together the private sector, public institutions, civil society organisations and citizens to review reforms since 2021, assess economic performance in 2025 and discuss the outlook for 2026.
The Minister explained that the Budget is the culmination of a national consultative process that began with the presentation of the National Budget Address in September 2025, followed by extensive debate, scrutiny and engagement across sectors. He acknowledged the contributions of Cabinet, Parliament, public institutions, technical teams, development partners, the private sector and civil society in shaping the final Budget.
Over the past four years, Zambia has implemented wide-ranging reforms aimed at restoring macroeconomic stability, restructuring public debt, reinstating free education, strengthening health services, expanding social protection and empowering communities through the Constituency Development Fund (CDF). Dr Musokotwane said these reforms, though difficult, were necessary to stabilise the economy, restore credibility and rebuild confidence.
The 2026 Budget builds on these foundations, with continued emphasis on debt sustainability, equitable access to education, improved healthcare delivery, expanded social protection and enhanced CDF allocations to support local development across the country.
Despite progress made, the Minister acknowledged ongoing challenges, including the high cost of living, climate-induced electricity shortages, limited access to affordable finance for small businesses and persistent youth unemployment. He said the Budget has been framed with empathy and urgency to address these realities through job creation, youth and women empowerment, prudent debt management and a firm stance against corruption.
For citizens, he said, the Budget prioritises dignity and practical outcomes such as affordable food, stable prices, functioning clinics, reliable water supply, decent jobs and quality education, while ensuring that development reaches rural and peri-urban communities and vulnerable groups.
The total estimated expenditure for 2026 stands at K253.09 billion, equivalent to 27.4 percent of GDP, with financing anchored mainly on domestic revenue, supplemented by grants and carefully managed borrowing from already contracted loans. Government aims to achieve sustained growth, reduce inflation to the 6–8 percent target range, narrow the fiscal deficit to 2.1 percent of GDP, and maintain international reserves above four months of import cover.
Dr Musokotwane said the Budget theme also sends a strong signal to investors and cooperating partners, reaffirming Government’s commitment to policy consistency, fiscal discipline and an enabling investment climate.
Looking ahead, he announced that the Ministry will roll out a revised Public Engagement and Communication Strategy for 2025–2030, with regular updates to ensure citizens understand policy choices, reforms and their practical implications.
“Economic reform succeeds when it is understood, owned and seen to be fair,” he said, calling for coordinated and proactive communication across all Government agencies.
Dr Musokotwane concluded by urging all Zambians to embrace the reform agenda with unity and confidence, stressing that the country’s future depends on collective effort and shared responsibility.
“Zambia’s future is brightest when we move forward together by rebuilding, innovating and producing, united in purpose and disciplined in effort,” he said.
