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The Centre for Trade Policy and Development (CTPD) has warned that Zambia’s public debt continues to pose a significant barrier to effective national budgeting, despite government efforts to restructure over 70 percent of the country’s external debt.
During the launch of CTPD’s 2025 national budget analysis on Friday at Radisson Blu Hotel in Lusaka, CTPD Vice Board Chairperson, Brian Mwiinga, highlighted that the debt burden was evident in the upcoming budget, with 80 percent of the total allocation for general public services designated for debt servicing.
Mwiinga stated that this heavy focus on debt repayment would severely restrict the government’s capacity to fund vital sectors such as health, education, and infrastructure, which are essential for fostering long-term national growth.
He emphasized the need for increased allocations to sectors like social protection, agriculture, mining and rural electrification, aimed at building resilience and stimulating economic development.
“While these moves demonstrate the government’s commitment to addressing vulnerabilities, significant structural challenges must still be tackled,” Mwiinga said.
In the energy sector, he commended the emphasis on rural electrification but pointed out the urgent need for solutions to the ongoing energy crisis and the limited investment in renewable energy sources.
“There is a need for increased funding in the mining sector for mineral exploration to help Zambia achieve its goal of producing 3 million metric tonnes of copper by 2031,” he urged.
Mwiinga also expressed concerns regarding agricultural funding, noting that the bulk of resources continued to be directed towards the Farmer Input Support Programme (FISP) and the Food Reserve Agency (FRA).
This focus, he said, had left critical areas such as irrigation and mechanization underfunded, which are crucial for enhancing productivity in the sector.
Adding to Mwiinga’s points, CTPD Public Finance Researcher, Elijah Mumba, warned that the government may face challenges in meeting its 2025 inflation rate and Gross Domestic Product (GDP) growth targets under the current economic climate.
Overall, the CTPD’s analysis underscored the pressing need for Zambia to rethink its budgetary allocations and prioritised investments that can drive sustainable economic growth while addressing the crippling effects of public debt.
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