Zambia Pins Economic Revival Hopes on Mining Sector Amid Drought Challenges
Zambia is looking to the mining sector for an economic recovery after facing a sharp slowdown in growth due to the worst drought in living memory, according to Finance Minister Situmbeko Musokotwane.
Speaking at an event discussing the economic outlook, Musokotwane highlighted that new mines were set to open soon, and existing mines were reinvesting to boost production.
“If all goes according to plan, 2025 should mark the start of this revival, and it will strengthen year after year,” he said.
The government estimates that copper production in 2023 exceeded 770,000 tons, up from 698,000 tons in 2022. Zambia aims to increase copper output to around 1 million tons by 2026, with a longer-term target of 3 million tons.
While the government remains optimistic about achieving a 6.6% growth rate for 2024, it has revised the growth estimate downward to 1.2% due to the lingering effects of the drought.
The country is also targeting a budget deficit of 3.1% of GDP for 2024, higher than last year’s 2.7%.
Zambia, which became the first African nation to default on sovereign debt during the COVID-19 pandemic, has reached restructuring agreements for 90% of its external debt. Musokotwane stated that Zambian officials are currently in China to discuss the remaining debt restructuring.
