Zambia is targeting economic growth of 4.9% in 2027 while reducing its budget deficit to no more than 3% of gross domestic product, as the government seeks to sustain its economic recovery and strengthen public finances, as reported by CNBC Africa. Finance Minister Situmbeko Musokotwane announced the projections on November 6 while presenting the 2027 national budget to parliament. The deficit target represents a significant reduction from the 5.9% projected for 2026, when fuel tax reductions and higher-than-anticipated government expenditure, particularly on maize purchases for national food reserves, placed additional pressure on public finances. The government’s plan reflects an effort to balance continued economic expansion with tighter expenditure management and improved revenue mobilisation.
The growth outlook builds on Zambia’s performance across key productive sectors, particularly mining and agriculture. Economic growth for 2026 was projected at 5.3%, supported by stronger agricultural production, mining activity and exports. Copper remains central to the country’s economic prospects, with output projected to reach 930,000 tonnes in 2026, compared with approximately 890,000 tonnes in 2025. Authorities are pursuing an ambitious longer-term target of increasing annual copper production to three million tonnes by 2031, supported by investment in mining operations, energy infrastructure and a more predictable fiscal framework for the sector. Improved electricity supply will also be important to sustaining industrial activity and expanding production capacity.
The fiscal adjustment comes as Zambia continues to consolidate progress following its 2020 sovereign debt default and subsequent restructuring negotiations. In October, the International Monetary Fund reached a staff-level agreement with the Zambian authorities on a proposed new 36-month Extended Credit Facility arrangement worth approximately $1.47 billion, subject to approval by the Fund’s Executive Board and the implementation of agreed prior actions. The programme is intended to support macroeconomic stability, debt sustainability and private-sector-led growth. Achieving the 2027 budget targets will depend on stronger domestic revenue collection, disciplined public spending and sustained investment across mining, agriculture and energy. For investors, the combination of a lower deficit target and continued copper-sector expansion will be an important measure of Zambia’s progress towards more resilient public finances and a broader economic recovery.
