Minister of Finance and National Planning Dr. Situmbeko Musokotwane says Zambia has recorded consistent year-on-year economic growth since the United Party for National Development (UPND) assumed office in 2021. Musokotwane said the country’s economic recovery remains firmly on track, citing single-digit inflation levels and a rebound across key economic sectors.
“I am happy to say that from the time we took office, year after year, including 2025, the economy has been posting positive growth,” Dr. Musokotwane said. The finance minister noted that growth had been recorded in several sectors, including mining, manufacturing, agriculture, tourism and various service industries.
“This progress we have seen in mining, in manufacturing, in agriculture following the previous year’s drought, in tourism and in many service sectors. So as far as growth is concerned, that is very positive,” he said. On economic stability, Dr.
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Musokotwane said Government was focusing on maintaining stable prices and exchange rates rather than pursuing extreme currency movements. He revealed that inflation had been steadily declining and had now returned to single-digit levels, down from nearly 17 percent recorded just over a year ago. “As far as prices are concerned, we have seen inflation coming down gradually.
We are now back to single digits. This means price changes compared to the same period last year are now below 10 percent, from a high of almost 17 percent just over a year ago,” he explained. Musokotwane also pointed to relative stability in the exchange rate, noting that the kwacha had weakened to above K22 per US dollar before the UPND took office, later fluctuated and nearly reached K30, but has since stabilised at around K20 to the dollar.
He cautioned against the pursuit of an excessively strong currency, warning that sharp appreciation could pose economic risks. Using a hypothetical scenario, the minister said a one-to-one exchange rate between the kwacha and the US dollar might appear attractive initially but would likely lead to a shortage of foreign currency as import demand surged. Musokotwane emphasised that Government’s approach remains focused on sustaining balanced growth and long-term economic stability. Spin what you want > Our daily lives tell us the truth
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