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An economist, Kelvin Chisanga, has called for a renewed approach to Zambia’s national budgeting process, stressing the need for targeted reforms to support inclusive and resilient economic growth.
Chisanga observed that while the proposed 2025 National Budget demonstrated stability amid ongoing challenges, structural inefficiencies continue to hinder development.
“There remains a serious mismatch between input allocations, revenue mobilisation, and actual outputs across key sectors,” he said, warning that this disconnect continues to limit Zambia’s developmental potential.
To address these challenges, Chisanga recommends targeted budget support initiatives to ensure public investments translate into productivity gains, stronger revenue performance, and tangible socio-economic impact.
“This will require strengthening input support through smart subsidies and innovative financing, broadening the tax base by formalising informal economic activities through friendly compliance measures, and incentivising value addition in both exports and domestic production,” he explained.
Chisanga further emphasised that future budget allocations should be tied to well-defined output targets, underpinned by output-based financing models and supported by robust monitoring and evaluation frameworks.
“These reforms are no longer optional — they are essential. Aligning fiscal policy with national priorities is critical to unlocking greater efficiency, stimulating domestic growth, and delivering lasting benefits to citizens,” he added.
Commenting on the economic outlook, Chisanga said Zambia’s economy was on a firmer recovery path, with GDP growth for 2025 projected between 5.8 and 6.2 percent. This is expected to be driven by rebounds in mining, agriculture, and the services sector, particularly ICT and logistics.
This follows a 4 percent growth rate recorded in 2024, attributed to renewed investor confidence and improving macroeconomic stability.
Chisanga also noted that inflation, which peaked at 16.8 percent in the first quarter of 2025, has now eased to 14.1 percent, driven by the Bank of Zambia’s tightened monetary policy and a stabilising Kwacha.
However, he cautioned that sustaining progress will require continuous policy adjustments.
“The government must prioritise energy resilience, environmental protection, and effective social spending if the budget is to achieve its full impact on livelihoods and inclusive development,” he advised.
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