Economists set 2025 national budget expectations, urge focus on key sectors to protect Zambia from external, internal shocks

The Economics Association of Zambia (EAZ) has called for the prioritization of critical sectors in the 2025 national budget to build resilience against both external and internal economic shocks.

EAZ president, Oswald Mungule, in a statement issued Wednesday in Lusaka, stated that Zambia’s economic stability depended on focusing on sectors like energy, mining, agriculture, and manufacturing.

He noted that strengthening these areas would help the country mitigate the effects of global and domestic challenges.

“The 2025 national budget should focus on key sectors, particularly energy, mining, agriculture and manufacturing, to drive economic recovery and growth,” Mungule said.

Mungule also stressed the importance of increasing domestic revenue financing to reduce Zambia’s reliance on external borrowing.

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He urged the government to aim for at least 80 percent of the national budget to be funded through domestic revenue.

“The 2025 budget should place a strong emphasis on increasing domestic revenue financing, aiming to reduce Zambia’s dependency on external borrowing. This is crucial for improving the country’s fiscal sustainability, especially in light of its current unsustainable debt levels,” he explained.

To achieve this, Mungule advocated the expansion and diversification of the tax base. He suggested progressive measures that would capture revenue from a wider range of economic activities, particularly from previously under-taxed sectors.

The EAZ president also underscored the importance of non-traditional sectors, particularly logistics, in the budget planning.

“The budget should promote growth in non-traditional sectors such as logistics to further diversify the economy. Enhancing logistics infrastructure will reduce business costs and improve Zambia’s competitiveness in regional and global markets,” Mungule added.

He highlighted that investments in the logistics sector could stimulate job creation and encourage the development of supporting industries, further boosting Zambia’s economic growth.

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