Fiscal Discipline Critical for Growth

Adherence to sound policies expected to improve employment, reduce inflation, and strengthen living standards

By Francis Maingaila ♥️ 

Lusaka, Zambia – December 23, 2025 – The Zambia Institute of Chartered Accountants (ZiCA) has identified fiscal discipline as critical for Zambia’s economic growth, urging the government and stakeholders to strengthen transparency, invest in human capital, and implement sound economic policies. 

ZiCA President Yande Siame Mwenye said in a media briefing fourth-quarter 2025 media briefing that the country had recorded a modest economic rebound between January and June 2025, with mining remaining Zambia’s largest source of foreign exchange, contributing US$440.5 million in the third quarter of 2025. 

She attributed this performance to robust global commodity prices, sustained mining revenues, and stable domestic food supply.

 However, Mwenye warned that unexpected pressures on agriculture, coupled with high baseline levels from 2024, continue to constrain growth.

Mwenye said Zambia’s inflation had slowed to 11.9% in October 2025, down from 16.7% in December 2024, largely due to the Kwacha’s appreciation, lower fuel prices, and a record maize harvest of 3.7 million tonnes.

 She said inflation is projected to fall further to 9.2% in 2026. 

She added that the Kwacha had strengthened by 21% in 2025, supported by US$440.5 million in foreign exchange inflows from the mining sector and a US$120 million intervention from the Bank of Zambia.

 Mwenye warned, however, that rising food prices and energy insecurity remain challenges that require coordinated policy responses.

She highlighted that Zambia recorded US$3.5 billion in suspected illicit financial flows in 2024, mostly linked to tax evasion, natural resource smuggling, and money laundering by multinational enterprises. 

While acknowledging government measures such as the Financial Crimes Court and anti-corruption legislation, Mwenye recommended further strengthening of the Zambia Revenue Authority (ZRA) and the establishment of a dedicated task force to address illicit flows.

On debt management, Mwenye commended the government for restructuring 94% of Zambia’s commercial, bilateral, and multilateral debt under the G20 Common Framework. 

She said the move had led to Fitch Ratings upgrading Zambia’s long-term foreign-currency rating to B–, while S&P raised the rating to CCC+. 

Mwenye emphasized that sustained fiscal discipline is critical to translating these gains into employment, lower inflation, and improved living standards.

Mwenye also noted progress in the Country-Wide High Resolution Aerial Geophysical Survey, which has mapped 34% of Zambia, covering Western and parts of Northwestern provinces 

She called for greater transparency in the survey and in the discovery of other minerals, including gold, to support economic growth and job creation.

On the Zambia Revenue Authority (Amendment) Bill 2025, Mwenye raised concerns that establishing legal entities beyond ZRA’s core mandate could create mission creep, legal conflicts, and risks to taxpayer data confidentiality. 

She recommended implementing clear governance frameworks and statutory safeguards.

Regarding the Registration of Business Names (Amendment) Bill 2025, Mwenye welcomed new definitions and record-keeping requirements but urged digital registration processes, simplified compliance for small and medium enterprises, and secure interoperability across government agencies.

Mwenye warned that the 2026 Annual Borrowing Plan could crowd out private sector credit and conflict with monetary policy, potentially undermining macroeconomic stability. 

She recommended enhanced coordination between the Ministry of Finance and the Bank of Zambia, a clear plan for reducing domestic financing, improved expenditure efficiency, and measures to diversify the economy.

On taxation, Mwenye praised amendments to the Income Tax Act that reduce penalties for late turnover tax payments and introduce voluntary disclosure provisions. 

She also supported tax incentives for the TAZARA railway public-private partnership to attract investment and enhance long-term productivity.

Mwenye appealed to the government to sponsor accounting students under the Constituency Development Fund (CDF), arguing that trained accountants are essential for proper management of public funds and community development projects.

 She suggested expanding bursaries to include professional courses, setting dedicated quotas, and ensuring transparent selection.

ZiCA also reminded members to settle 2026 membership invoices, submit 2025 CPD returns by January 1, 2026, and access e-certificates and digital seals. 

Mwenye emphasized that only registered accountants should be employed for accounting and audit roles, and misconduct should be reported to the Institute.

Mwenye concluded by reaffirming ZiCA’s commitment to supporting the government as a trusted advisor and regulator, urging stakeholders to uphold ethical and professional standards to build a sustainable and inclusive economy.

“As we enter the new year, we must build an economy that is ethical, inclusive, and sustainable,” Mwenye said. 

“I extend my best wishes to all Zambians for a safe festive season and a prosperous 2026.”

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