Africa-Press – Zambia. The claim that Zambia’s economy has consistently improved under the 2025 national budget, as stated by Minister of Finance and National Planning Dr. Situmbeko Musokotwane, faces significant counter-arguments when examining the available economic data. While the minister points to the successful execution of programs like the Constituency Development Fund (CDF) and salary payments, a broader analysis reveals persistent challenges, particularly concerning public debt, inflation, and foreign exchange rates.
The minister’s statement attributes the domestic debt issues to “mismanagement by the former Patriotic Front administration.” However, current data shows that Zambia’s overall debt burden, which includes both domestic and external debt, remains a critical threat to economic stability. The country is still in the process of a complex debt restructuring, which has been slow and challenging. As of mid-2025, the government had yet to finalize the restructuring of its $3 billion Eurobonds with commercial creditors. The delays in reaching a comprehensive agreement have cast a shadow of uncertainty over the country’s economic outlook, deterring foreign direct investment and hindering long-term planning. The government’s assurances of commitment to settling domestic debt have not fully mitigated market concerns, which are reflected in the country’s sovereign credit ratings.
While government programs are progressing, this does not necessarily translate to a better quality of life for the average citizen. Inflation has been a persistent issue, eroding the purchasing power of households. The cost of essential goods, particularly food, has remained high. As of mid-2025, the annual inflation rate was above the government’s target range, putting a strain on families and businesses. A recent report by the Zambia Statistics Agency (ZamStats) indicates that food inflation, in particular, has been a significant driver of the overall inflation rate. This high inflation directly contradicts the notion of a “fairly well” performing economy for the general populace, as many households are struggling to make ends meet despite the implementation of government programs.
Another counter-argument lies in the performance of the Zambian Kwacha (ZMW) against major foreign currencies like the US Dollar. Despite government efforts, the Kwacha has remained under pressure. This depreciation makes imports more expensive, which in turn fuels inflation and increases the cost of servicing external debt. While the government has implemented measures to stabilize the currency, the persistent volatility is evidence that the economy is not on a stable, consistent upward trajectory. The struggle to maintain a stable exchange rate indicates underlying weaknesses in the country’s balance of payments and a continued reliance on external factors, such as commodity prices and foreign aid.
In conclusion, while the government has made progress on some internal programs, the bigger picture shows an economy still grappling with significant challenges. A truly “fairly well” performing economy would show improvement across all key indicators, including a stable currency, controlled inflation, and a clear path to debt resolution. The current situation suggests that while the government is making efforts, the economy is still far from stable, and the benefits of these programs have yet to be fully realized by the average Zambian.
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