“Prosperity Plan Unveiled”
Dr. Musokotwane Unveils K253.1 Billion 2026 National Budget to Boost Growth, Jobs, and Social ProtectionBy Francis Maingaila ♥️
LUSAKA, Zambia24 (27 September 2024) – Finance and National Planning Minister Dr. Situmbeko Musokotwane on Friday presented the 2026 National Budget, unveiling a K253.1 billion plan designed to consolidate economic gains, create jobs, and strengthen social protection.
Dr. Musokotwane told Parliament that the budget, which represents 27 percent of the country’s GDP, carries the theme “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia.”
Dr. Musokotwane emphasized that the budget will be largely funded through domestic resources. He said, “Of the total K253.1 billion, K206.5 billion, or 82 percent, will come from local revenue. Grants contribute K12.1 billion, while K34.5 billion will be raised through domestic and external borrowing.”
He noted that this approach reflects the government’s commitment to fiscal discipline and debt sustainability.
Dr. Musokotwane told lawmakers that the country has successfully restructured 94 percent of its debt and is current on all repayments, following the default during the COVID-19 pandemic.
He said, “From the depths of a debt crisis, Zambia has emerged as a model of financial resilience and reform.”
He added that K92.6 billion has been allocated to general public services, including K52 billion for domestic debt and K22 billion for external debt servicing.
Dr. Musokotwane stated that K1.2 billion has been allocated to increase copper production to one million tonnes annually, with K76 million supporting artisanal miners.
He said gold processing plants will be established in Mumbwa and Rufunsa to enhance local value addition.
Dr. Musokotwane said K500 million will be used to establish the Electricity Fund to diversify the national energy mix and reduce load shedding.
He told Parliament, “The Zambia–Tanzania power interconnector, linking Zambia to Kenya, Uganda, and Ethiopia, will be implemented in 2025. A five-megawatt thermal power plant in Lusaka will be inaugurated within two weeks.”
Dr. Musokotwane reported that maize production is projected to reach 10 million tonnes by 2031, while wheat and soya beans are expected to rise to one million tonnes each.
He added that the manufacturing sector has attracted over $4 billion in investment over the last four years, generating 31,000 jobs.
He said, “Projects include Mulungushi Textiles in Kabwe and battery production in Chibombo for export to eight countries.”
Regarding infrastructure, Dr. Musokotwane said that ten Public-Private Partnerships, valued at US$1.7 billion, will upgrade 1,500 kilometers of roads by 2026.
He added, “The TAZARA railway will be revitalized, and construction will begin on the Mufulira–Mokambo–Mansa,Chipata–Lundazi, and Livingstone–Kazungula–Sesheke roads.
The Lusaka–Ndola dual carriageway is expected to be completed by August 2027, while new airports in Choma, Kasaba Bay, and Nakonde will start construction in 2026.”
Dr. Musokotwane highlighted that the Constituency Development Fund (CDF) has increased from K36.1 million to K40 million per constituency.
He said, “Since 2022, the CDF has funded 2,800 classrooms and 131 health posts.”
He also reported that free education now benefits 2.3 million children, with 2,000 teachers to be recruited in 2025 and 3,500 more in 2026.
Dr. Musokotwane added, “Bursaries will support an additional 6,000 students in 2026.”
On health, Dr. Musokotwane stated that K6.4 billion will be allocated for drugs and medical supplies, with K953 million for equipment maintenance and procurement.
He said, “Five new Level One hospitals will be constructed in Kabwe, Monze, Choma, Zambezi, and Lusaka to improve access to healthcare.”
Dr. Musokotwane said K15.7 billion will expand the Food Security Pack from 244,000 to over 320,000 households. He added that over K8.6 billion has been released to settle benefits for 11,921 retirees.
Dr. Musokotwane stated that amendments to the Anti-Corruption Act and a Medium-Term Revenue Strategy will broaden the tax base and reduce pressure on compliant taxpayers.
He said, “Fees for citizenship, visas, and firearms will be revised, excise duties on hybrid vehicles reduced, and duty relief provided for electricity distribution equipment.”
Addressing global economic risks, Dr. Musokotwane told Parliament that trade tensions and geopolitical uncertainties may slow global growth from 3.2 percent in 2024 to 3.0 percent in 2025. Despite this, he expressed confidence in Zambia’s prospects.
“The 2026 Budget demonstrates our resolve to consolidate progress, improve livelihoods, and place Zambia firmly on the path to sustained prosperity,” he said.
© The GOAT MEDIA CENTRE
Comments
Post a Comment