President Hakainde Hichilema’s decision to reappoint Situmbeko Musokotwane as Zambia’s Minister of Finance and National Planning sends a clear signal that economic continuity will remain at the centre of the country’s next phase of development.
Confirmed on 14 September 2026 following Hichilema’s re-election and the swearing-in of his first cabinet ministers, Musokotwane returns to the portfolio he has held since 2021. His record includes a central role in Zambia’s prolonged debt restructuring process and the country’s efforts to restore macroeconomic stability following its pandemic-era sovereign default.
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For Zambia, the appointment is about more than retaining an experienced finance minister. It represents continuity at a critical point in the country’s economic recovery — and potentially an important signal to investors, development partners and financial institutions across Africa.
Under Musokotwane, Zambia has made measurable progress on several fronts. The International Monetary Fund (IMF) reported in May that gross international reserves had risen to $6.4 billion, equivalent to 4.4 months of prospective imports. Inflation had also fallen to 6.8 per cent in April, returning to the Bank of Zambia’s 6–8 per cent target range, while the country recorded a primary surplus of 3.1 per cent of GDP in 2025.
That progress has continued. Zambia’s annual inflation rate fell to 6.2 per cent in August 2026 from 6.5 per cent in July, according to the Zambia Statistics Agency.
Perhaps the most consequential achievement has been on debt. Zambia became the first African country to default on its sovereign debt during the COVID-19 pandemic, triggering years of negotiations with creditors. By May 2026, the IMF said restructuring agreements covered approximately 94 per cent of the restructuring perimeter.
In June, Zambia also secured overwhelming participation in a cash tender offer for its $1.365 billion 2053 Eurobond. Bondholders representing 97.85 per cent of the outstanding notes tendered their holdings by the early participation deadline, marking another significant step in the government’s liability-management strategy.
The next challenge is to ensure that fiscal consolidation translates into productive economic activity.
Zambia’s growth prospects remain closely tied to its mining sector, particularly copper. Copper production reached approximately 890,346 tonnes in 2025, an 8 per cent increase from 2024, although the country fell short of its one-million-tonne target. Government projections remain focused on exceeding one million tonnes and ultimately reaching three million tonnes annually by 2031.
Major investments by companies including First Quantum Minerals and Barrick are expected to expand production capacity, while the revival of mines such as Mopani and Konkola could further strengthen Zambia’s position in the global copper supply chain.
This matters beyond Zambia’s borders. Copper is increasingly central to the global energy transition, with demand driven by electric vehicles, renewable-energy infrastructure, power grids and digital technologies. A stronger Zambian mining industry therefore has the potential to contribute not only to national revenues and employment, but also to Africa’s strategic position in global critical-mineral supply chains.
Yet the outlook is not without risks.
The IMF has revised Zambia’s 2026 growth forecast to 4.3 per cent, citing weaker mining output, the normalisation of agricultural production after an exceptional 2025 harvest, energy constraints and wider geopolitical pressures. It also projects inflation to reach 8.5 per cent by the end of the year.
Energy remains particularly important. Zambia’s dependence on hydropower leaves economic activity vulnerable to drought, while mining expansion will require reliable and affordable electricity. Diversifying the energy mix and strengthening transmission infrastructure will therefore be essential if the country is to translate mineral investment into sustained industrial growth.
The government is also preparing for its next engagement with the IMF. Musokotwane has said Zambia aims to agree a successor programme by the end of 2026, following the conclusion of its previous $1.7 billion Extended Credit Facility. Discussions had already advanced before the elections and are expected to resume with the new administration.
Importantly, the next phase cannot rely solely on debt restructuring or higher copper prices. Zambia will need stronger domestic revenue mobilisation, greater economic diversification and investment in agriculture, energy, manufacturing and infrastructure.
Musokotwane has previously argued for improving tax collection through greater efficiency rather than simply introducing new taxes. That approach will be important as the government seeks to widen fiscal space without placing unnecessary pressure on households and businesses.
For African policymakers and investors, Zambia’s experience offers a broader lesson. Macroeconomic stability is not an end in itself; it is the foundation on which productive investment, industrialisation and inclusive growth can be built.
Musokotwane’s return therefore comes at a consequential moment. The immediate task is to preserve the gains made through fiscal reform and debt restructuring while creating the conditions for a more diversified, productive and investment-driven economy.
If Zambia can combine financial discipline with reliable energy, responsible mining expansion, stronger domestic industries and greater private-sector participation, its economic recovery could become more than a story of stabilisation. It could provide a model for how African economies can move from crisis management towards long-term, broad-based growth.
