Keypoints:
- Zambia projects 6.4% growth for 2026
- Copper and agriculture key to rebound
- Power shift to solar after drought impact
ZAMBIA expects its economy to expand by 6.4 percent in 2026, driven by stronger performance in mining and agriculture, the Ministry of Finance has said in its latest medium-term budget plan.
This forecast marks a step up from this year’s projected 5.8 percent, as the Southern African country rebounds from a severe regional drought that hampered growth and power generation in 2024. The drought, which affected hydroelectric output, compounded the effects of prolonged debt-restructuring talks over recent years.
According to the finance ministry, gross domestic product is also expected to grow by 6.5 percent in 2027 before easing slightly to 5.1 percent in 2028, with momentum maintained by rising copper exports and agricultural production.
Copper output gains new ground
Copper remains central to Zambia’s economic engine. The ministry projects copper output will exceed 1 million metric tonnes next year, rising to 1.2 million tonnes in 2027 and over 1.3 million tonnes in 2028.
President Hakainde Hichilema’s government is aiming to lift production close to 1 million tonnes by the end of this year, boosted by a strong start to 2025. Authorities hope the sector will help anchor wider recovery efforts and attract fresh investment.
First Quantum Minerals recently completed a $1.25bn expansion at its Kansanshi copper and Enterprise nickel operations, setting the stage for increased output. At the same time, Barrick Gold is rolling out a $2bn project to double production at its Lumwana mine and extend its life to 2057.
These moves are expected to significantly bolster Zambia’s export earnings and create jobs in local supply chains.
Power reforms to safeguard growth
In response to the drought’s damage to hydropower, the government says it will intensify efforts to diversify electricity generation—particularly through solar energy—to ensure stability in agriculture and industry.
‘Expanding our power base beyond hydro is a necessity,’ the finance ministry said. ‘The impact of the drought on productivity was a wake-up call, and we are now prioritising resilient energy solutions.’
The shift toward renewables is designed to shield key sectors from future climate risks while supporting Zambia’s green growth commitments.
With investment inflows rising and structural reforms underway, Zambia’s economic prospects appear brighter—anchored by the copper belt and fertile fields that are once again proving central to its national story.
