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The World Bank Country Manager for Zambia, Achim Fock, has emphasized the need for Zambia to urgently diversify its economy to fast-track economic transformation, even as mining continues to anchor growth and government revenues.
Speaking during the launch of the Zambia Economic Update (ZEU) in Lusaka on Tuesday at Mulungushi International Conference Centre, Fock emphasised that while mining presented a valuable growth opportunity, it could not, on its own, deliver inclusive prosperity for all citizens.
“Mining will remain a major driver of economic growth and government revenues, but Zambia must diversify its economy to accelerate transformation. Increasing productivity in agriculture and adding greater value in the services sector, including tourism, offer vast opportunities,” he said.
Fock noted that the rising global demand for energy transition minerals places Zambia’s mineral wealth in a strategic position to contribute to the global clean energy shift. However, he cautioned that the expansion of the mining sector must be undertaken with strict adherence to environmental, social, and governance (ESG) standards.
He commended Zambia’s economic resilience in 2024, with the economy recording four percent growth despite challenges such as a historic drought and nationwide power outages — driven largely by mining and services sector performance.
Looking ahead, Fock observed that economic prospects were improving, with expected momentum in mining, a rebound in agriculture, and a recovery in tourism. He, however, warned of persistent risks, including subdued global growth, trade policy uncertainties, and increasingly frequent climate shocks.
“We commend the government for remaining committed to critical reforms and fiscal discipline amid increased financing needs caused by the drought. We also congratulate the authorities on the near-completion of external debt restructuring,” Dr Fock added.
Meanwhile, Minister of Finance and National Planning, Situmbeko Musokotwane, reaffirmed that Zambia had consistently posted positive economic growth since 2020, including the economically challenging 2024 fiscal year.
Musokotwane maintained that the country’s economic outlook remained positive and underscored the importance of sustaining policy consistency, completing the debt restructuring process, and managing the national budget prudently to avoid a repeat of past debt crises.
“The budget must be managed in a way that public funds are directed towards the country’s most pressing needs,” he said.
The minister further highlighted the critical role of continuing policy reforms to foster private sector-led growth, stressing that government resources alone were insufficient to meet Zambia’s development ambitions.
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