President Hichilema Outlines Path from Economic Stability to Jobs and Growth
President Hakainde Hichilema has told the National Assembly that Zambia has largely stabilised its economy and is now entering a new phase focused on accelerated growth, increased investment and job creation.
In a commentary explaining the President’s address, Finance and National Planning Minister Situmbeko Musokotwane said the core message to citizens, investors and businesses was one of consistency and discipline in economic management.
He explained that the alignment between the President’s speech and the 2026 National Budget signals policy predictability, which is critical for restoring confidence, lowering borrowing costs over time and attracting long-term investment capable of creating jobs.
Mr Musokotwane noted that key indicators show the economy has become more stable compared to the period around 2021. Inflation has declined towards the 6–8 per cent target range, international reserves have strengthened to about US$5.5 billion, and the fiscal deficit has been reduced significantly through tighter budget discipline.
Turning to the 2026 National Budget, valued at K253.1 billion, the Minister said the focus is not only on size but direction, with measures aimed at closing revenue leakages, dismantling arrears, containing domestic borrowing and maintaining fiscal discipline while investing in national priorities.
On public debt, he said Zambia has made progress in restoring credibility, with about 94 per cent of external debt now under restructuring agreements. Going forward, borrowing will be anchored on the Parliamentary-approved Annual Borrowing Plan to ensure transparency, accountability and sustainability.
The President also highlighted investment as the main engine for job creation. Planned interventions include a K5 billion SME financing facility, major road infrastructure programmes, energy expansion projects, manufacturing investments in economic zones and reforms to open the energy sector to private participation.
According to the Minister, these investments are already translating into employment opportunities, with thousands of jobs linked to new investment commitments, economic zones, artisanal mining licences and expanded skills training under TEVET.
Despite fiscal consolidation, the Government has maintained strong support for social protection and human capital development. Significant allocations have been made for social cash transfers, food security packs, pensions, education and health, including increased funding for medicines and free education.
The Constituency Development Fund remains a central tool for decentralisation, with K40 million allocated per constituency in 2026 to bring development closer to communities through classrooms, bursaries and empowerment grants.
Mr Musokotwane said the overall message from the President is clear: Zambia is moving from stability to growth, from growth to jobs and from jobs to improved living standards.
He stressed that disciplined borrowing, institutional accountability and shared responsibility among citizens, businesses and public institutions will be critical to sustaining this progress.
