GROWING ZAMBIA’S ECONOMY TO SUSTAINABLE LEVELS UNDER UPND
By The falcon News reporter
Since assuming office in 2021, President Hakainde Hichilema’s government has made remarkable progress in stabilizing and growing Zambia’s economy. From a struggling economy at -2.8% growth in 2021, the country is now on a positive trajectory, with projections indicating growth of over 5.5% by 2025. Today, Zambia ranks as the 6th fastest-growing economy in Africa and the fastest in Southern Africa a clear sign of improvement.
However, some people still ask: If the economy is improving, why are ordinary citizens still struggling? The answer lies in how economic growth works. When a country’s economy grows, it does not immediately translate to instant relief for every individual. Instead, economic benefits take time to reach everyone, just like planting a tree it does not bear fruit immediately.
One of the major setbacks Zambia faced was the 2022-2023 drought, which had a direct impact on two critical sectors: energy and agriculture. The country relies heavily on hydro-generated electricity, and with reduced rainfall, water levels in reservoirs like Kariba Dam dropped significantly, leading to load shedding. This affected businesses, industries, and households, slowing down productivity. The agricultural sector was equally hit, as lower rainfall resulted in poor harvests, leading to increased food prices and hardship for farmers.
Despite these challenges, the UPND government has remained committed to stabilizing and growing the economy through key interventions. One of the most significant achievements has been debt restructuring, which has provided Zambia with the much-needed financial breathing space. By negotiating better repayment terms and reducing the pressure of excessive debt, the government has created room for economic recovery and investment in key sectors.
To ensure long-term sustainable growth, the government has also prioritized fiscal discipline by reducing unnecessary borrowing, cutting wasteful expenditure, and improving transparency in the management of public funds. These measures have helped restore investor confidence and strengthen the local currency.
In addition, the government is focused on value addition to maximize the benefits of Zambia’s natural resources. Instead of exporting raw materials, Zambia is now processing them locally, creating jobs and boosting industrialization. The establishment of a car battery and transformer manufacturing plant is a game changer, utilizing Zambia’s abundant copper resources to produce electric vehicle batteries and electrical transformers. The revival of Mulungushi Textiles is also a strategic move to promote local production and job creation in the textile industry. United Capital Fertilizer is another milestone, reducing dependence on imported fertilizers and making farming more affordable for local farmers.
Mining, the backbone of Zambia’s economy, has also seen a major turnaround under the UPND government. The reopening of Mopani Copper Mines and Konkola Copper Mines (KCM) has secured thousands of jobs, while the revival of Kalengwa and other mines is set to further boost copper production and national revenue.
Economic transformation does not happen overnight, and while statistics show that Zambia is on the right path, it takes time for the benefits to trickle down to every household. However, with a strong foundation in place through debt restructuring, fiscal discipline, industrialization, and mining revival Zambia is well-positioned for sustainable growth. The government’s commitment to these interventions ensures that the positive economic trajectory will soon translate into better opportunities, improved services, and a higher standard of living for all Zambians.
#Betterdaysarecoming