The Centre for Trade Policy and Development-CTPD says public debt remains a major challenge to Zambia’s national budgeting despite significant progress made to restructure over 70 percent of the country’s external debt.
Speaking during CTPD’s launch of the 2025 national budget analysis in Lusaka last evening, organization Vice Board Chairperson Brian Mwiinga explains that this is evident in the 2025 budget as 80 percent of the total allocation to general public services function is earmarked for debt servicing.
Mr. Mwiinga says this will continue to affect the government’s ability to direct adequate and sustainable funding towards productive investments in areas like health, education, and infrastructure that are crucial for long-term growth.
He however notes increased allocations to social protection, agriculture, mining, and rural electrification in a bid to build resilience and stimulate economic growth, saying while this might be indicative of government’s commitment to addressing vulnerabilities, several structural challenges need to be addressed carefully.
Mr. Mwiinga says in the energy sector, the focus on rural electrification is commendable but that there are inadequate measures to resolving the immediate energy crisis and limited investment in renewable energy and that in the mining sector efforts and resources towards mineral exploration must be increased if the country is to achieve the 3 million metric ton target of copper production by 2031.
He also notes that in the agriculture sector, funding remains concentrated on the Farmer Input Support Program- FISP and Food Reserve Agency- FRA with insufficient resources allocated to critical areas such as irrigation and mechanization, which are essential for improving productivity
Meanwhile, CTPD Public Finance Researcher Elijah Mumba says it will not be easy for the government to attain the targeted inflation rate and Growth Domestic Product-GDP growth in 2025 considering the current economic challenges.
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