Finance Minister Situmbeko Musokotwane outlined the government’s plan in his budget speech on Friday, projecting a growth rate of 6.6% in 2025, compared to a forecasted 2.3% growth in 2024. The economic recovery is expected to be driven by improved performance in the mining and agricultural sectors.

The drought induced by the El Niño climate pattern, which swept across southern Africa this year and described as the worst in living memory, decimated crops, leading to food shortages and undermining the region’s economic prospects.

Zambia also aims to shrink its budget deficit to 3.1% of gross domestic product (GDP) in 2025, down from the projected 6.4% in 2024. Domestic revenues will finance roughly 80% of next year’s spending, with the remaining 20% covered by grants (4%) and borrowing (16%).

The minister also highlighted ongoing negotiations with commercial creditors to restructure Zambia’s debt, following the successful restructuring of its Eurobonds. The protracted debt restructuring process has previously hindered investment and weighed heavily on local financial markets.