Zambia: economic growth set to slow in 2023

Following a budget plan presented by the ministry of finance on Sunday, Zambia’s economy is projected to grow by just 2.7% in 2023, down from 4.7% in 2022, as contractions in the mining and energy sectors restrain growth.

After becoming the first country in Africa to default on its sovereign debt in 2020, Zambia has finally completed a long-delayed debt restructuring plan with the International Monetary Fund (IMF).

By 2026, the IMF predicted that this will save the southern African nation $7.65 billion.

Based on improvements in macroeconomic conditions and the enactment of reforms, the budget plan projects that Zambia’s GDP will grow by 4.8% in 2024, 4.3% in 2025, and 5.0% in 2026.

As Zambia works to restore fiscal sustainability, the country is experiencing a rise in confidence, according to Secretary to the Treasury Felix Nkulukusa.