Zambia Eyes 6% Economic Growth in 2025 Amid Copper Boom and Currency Surge
Zambia’s economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane.
The projection, he said, is fueled by a combination of improved rainfall and a surge in copper production, Zambia’s economic backbone.
Speaking on the sidelines of Bloomberg’s annual Africa Business Media Innovators Conference, Musokotwane emphasized that the country’s mining sector—particularly copper—is central to its ongoing economic rebound.
Zambia, the second-largest copper producer in Africa, saw a significant increase in metal output last year. Copper accounts for over 70% of the country’s export earnings.
The government aims to ramp up copper production to 1 million tons in 2025, with long-term plans to triple that to 3 million tons in the coming years.
“If all goes according to plan, 2025 should be the start of this revival, and it will get stronger and stronger each year going forward,”
Musokotwane said earlier this year.
Zambia’s growth optimism comes on the heels of a prolonged debt restructuring process. The improved outlook enhances prospects for better returns to creditors, including bondholders. Musokotwane remains confident in the government’s trajectory.
“We just need to maintain this for 10, 15 years—positive growth every year,” he said. “People will begin to see that it’s not a certainty that you are born in poverty and you will end in poverty. Things can change.”
Zambia’s economic prospects are also being buoyed by a decline in inflation, offering much-needed relief to households and businesses.
The easing of food prices—particularly bread and cereals—has been a key factor, thanks to better rainfall that helped mitigate the effects of previous droughts.
At the same time, the Zambian kwacha has emerged as Africa’s second-best performing currency against the U.S. dollar in 2025, appreciating by 12% following a sharp rally last week.
Despite Zambia’s positive outlook, the International Monetary Fund (IMF) remains slightly more cautious, projecting 5.8% growth for 2025.
The IMF has also flagged concerns over unexpectedly high debt-servicing costs, which have led the government to revise its 2025 budget to incorporate new revenue measures.
Still, the convergence of strong commodity performance, fiscal reforms, and currency stability has positioned Zambia as one of Africa’s most promising economic turnaround stories.
