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The Zambia Institute of Chartered Accountants (ZICA) has praised the government for significantly improving fiscal discipline, citing a substantial reduction in the national budget deficit from nine percent of Gross Domestic Product (GDP) in 2021 to 3.1 percent in 2025, with projections pointing to a further decline to 2.1 percent in 2026.
ZICA president, Yande Mwenye, said the trend reflected strengthened public financial management and improved debt controls, placing Zambia on a more stable and sustainable economic trajectory.
Speaking during a media briefing at Radisson Blu Hotel in Lusaka on Tuesday, Mwenye said the narrowing deficit was expected to produce wide-ranging benefits, including lower interest rates, enhanced investor confidence, improved exchange rate stability, reduced inflation pressure, and increased fiscal space for development programmes.
“Less borrowing will gradually ease interest rates and free up resources for critical sectors such as health, education and infrastructure,” she said.
“At the same time, stronger fiscal discipline enhances credibility and can attract both domestic and foreign investment,” Mwenye said.
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However, Mwenye cautioned the government against excessive reliance on supplementary budgets—an issue that has resurfaced following a request by the Ministry of Finance and National Planning for additional expenditure authority.
“While supplementary budgets are useful in responding to unforeseen events, over-reliance can weaken fiscal discipline, reduce accountability, and complicate economic management,” she said, emphasising the need for transparency and rigorous oversight.
On Zambia’s international credit standing, ZICA welcomed the successful completion of the Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF) in January 2026.
The 38-month programme, approved in August 2022, provided a total of US$1.7 billion to support Zambia’s economic recovery following its debt crisis. The final review released an additional US$190 million, bringing disbursements to the full programme amount.
Mwenye said completing the ECF demonstrated meaningful progress in restoring macroeconomic stability, advancing debt restructuring, strengthening policy credibility, and supporting economic recovery amid persistent challenges, including drought and global economic pressures.
“The completion of the ECF is essentially a stamp of approval that Zambia has broadly stayed on track with its reform agenda. However, it does not mark the end of reforms, but rather a transition from stabilisation to sustained economic transformation,” she said.
She added that the achievement was expected to enhance Zambia’s access to international financing, boost investor confidence, and help stabilise the Kwacha.
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