By Situmbeko Musokotwane
To every young person wondering whether the economy will make room for their dreams, and to every small business owner trying to keep the doors open while planning for growth, this message is for you.
Behind today’s economic headlines are quiet shifts that shape whether you can plan, invest, hire, or take a risk. Below is a reflection on where Zambia stands and what this moment means for your future.
IMF STAFF-LEVEL AGREEMENT: A Reflection for Young People and Entrepreneurs on Zambia’s Reform Journey
To Zambia’s young people, and to those running small and medium businesses, trading in our markets, farming our land, building workshops, driving buses, manufacturing, coding, innovating, or simply carrying an idea they hope to turn into a livelihood, I want to reflect with you on an important development, and what it means for your future.
The International Monetary Fund has announced that its experts and Zambia’s economic team have reached an initial agreement on the sixth and final review of the financial support programme (Enhanced Credit Facility) that began in 2022. Subject to approval by the IMF Executive Board, this agreement will unlock a final disbursement of about US$190 million, bringing the total IMF support to around US$1.7 billion.
For many of you, these numbers can feel distant. Yet they quietly shape whether you can plan ahead, invest with confidence, hire, borrow, or take a risk.
This moment is not simply about meeting a technical requirement. It is an opportunity to pause and recognise that Zambia has stayed the course through difficult adjustments; through droughts, global price shocks, and the weight of old debts, and has begun restoring economic stability.
We have corrected major imbalances, managed public spending while protecting the most vulnerable, rebuilt foreign exchange reserves (USD$5.2 Billion) to around five months of import cover, and restored credibility to the economy.
For young people and entrepreneurs, these shifts matter in practical ways. A more stable currency reduces uncertainty in pricing.
Lower fuel and transport costs ease pressure on margins. More predictable inflation allows businesses to plan, save, and reinvest. Investor confidence returning to Zambia signals expanding markets, supply chains, and opportunities for partnerships and jobs.
Resolving much of our external debt and securing credit rating upgrades with positive outlooks has also sent an important message internationally: That Zambia is rebuilding trust.
That trust affects the availability and cost of capital, whether for large investors or, over time, for smaller businesses seeking finance.
Looking ahead, the IMF projects average economic growth of 5.6 percent between 2026 and 2031, driven by mining, agriculture, energy reforms, and private investment.
Growth of this nature is not an abstract statistic. It is exactly the sort of environment in which businesses expand, employment grows, and young people move from survival to ambition to growth to prosperity.
The 2026 National Budget, which I presented in September under the theme “Building on Economic and Social Wins for a Prosperous, Resilient, and Inclusive Zambia,” is designed with this transition in mind.
At K253.1 billion, it seeks to convert macroeconomic stability into opportunity. It projects 6.4 percent growth in 2026, reducing inflation to within the 6–8 percent range, and reducing fiscal deficit of 2.1 percent of GDP (Fiscal deficit is when the Government spends more money than it collects in taxes and other income, so it has to borrow to cover the shortfall).
Young people and MSMEs sit at the centre of this strategy because sustainable growth and job creation cannot come from the Government alone. They come from enterprise, skills, and self-improvement initiatives.
For young Zambians, education and skills remain the foundation. The Free Education Programme continues to provide schooling from Grades 1 to 12, increasing enrolment by 2.3 million learners since 2022, with strong gains for girls and vulnerable children.
In 2026, the Home-Grown School Feeding Programme will reach all 116 districts, ensuring learners are better prepared to learn. K2.4 billion is allocated to free education, within the broader K33 billion or 13 percent of the total budget which committed to the education sector.
Teacher recruitment and infrastructure expansion continue to reinforce this progress. The recruitment of 3,500 teachers in 2026 builds on 42,000 hired since 2022.
The procurement of 1.6 million desks of which 42 percent were locally produced, and the construction of 120 new secondary schools and rehabilitation of universities, supports both learning and local industry.
Support for higher education and vocational training remains strong. In 2026, bursaries will support 6,000 university students while 100,000 youths will be trained through TEVET institutions.
TEVET enrolment has risen from 38,000 in 2021 to 96,000, with female participation reaching 45,000 in 2024. These measures recognise that a modern economy needs artisans, technicians, engineers, and entrepreneurs as much as it needs professionals.
Employment opportunities are also expanding through public service recruitment. The health sector will recruit 3,000 workers in 2026, creating stable entry points for young professionals.
For those already active or aspiring to be active in business, economic empowerment programmes remain central. The Cash-for-Work Programme, the Constituency Development Fund, and the Citizens Economic Empowerment Fund, among others, continue to provide income support, skills, grants, and affordable finance to millions of Zambians thereby anchoring opportunity at community level.
Beyond direct programmes, the 2026 Budget introduces measures to ease the cost of doing business, including a new K5 billion SME financing facility, reduced penalties, removal of duties on key inputs, and procurement preferences for local enterprises.
Significant investments in agriculture, mining, energy, and road infrastructure aim to strengthen value chains, reduce operating costs, and expand market access. These conditions are essential for MSMEs to grow.
At the same time, we remain realistic about risks involved. Global uncertainty, climate shocks, inflation pressures, and debt vulnerabilities require discipline. State-owned enterprises must be managed better, and fiscal prudence must be maintained.
The Government’s path forward remains focused on people and enterprise: raising domestic revenue beyond 22 percent of GDP, limiting unnecessary borrowing, advancing reforms in energy and logistics, building reserves, and creating a business-friendly environment that rewards initiative and productivity. In late January 2026, we will hold a National Townhall Meeting with the Bank of Zambia and the Zambia Revenue Authority to engage openly with citizens, entrepreneurs, and young people on 2025 economic performance and 2025 plans and outlook.
Final Remarks
As Zambia advances through this phase of reform and recovery, it is important to reflect carefully on how we judge government-led empowerment and development programmes. Skepticism is understandable, particularly where past efforts fell short or delivered uneven results. But skepticism becomes limiting when it hardens into prejudice and when initiatives are dismissed before they are understood, engaged with, or given room to evolve.
Empowerment programmes are not shortcuts to success, nor are they substitutes for effort, enterprise, or discipline. Their purpose is more foundational, that is, to widen access where historical barriers have narrowed opportunity, to reduce risk where markets alone are reluctant to enter, and to create enabling conditions in which individual initiatives and private enterprise can take root and thrive. They are building blocks, not guarantees.
It is also essential to distinguish between design and delivery. No development instrument is immune to implementation challenges. What matters is whether systems learn, adapt, and improve. Many of today’s programmes reflect precisely that process. To judge present efforts solely through the lens of earlier shortcomings is to deny the possibility of institutional learning and progress.
Empowerment works best when citizens engage as participants, not observers. Uptake, compliance, repayment, feedback, and community oversight all shape outcomes. Development is not something done to people; it is something achieved with them.
Progress, too, is cumulative. Education reshapes opportunity over time. Skills improve productivity gradually. Access to finance allows ideas to be tested, refined, and scaled. These are layered gains, not instant transformations.
As we look ahead, a balanced posture is essential i.e. one that combines realism with openness, and accountability with participation. When prejudice gives way to informed engagement, empowerment programmes are far more likely to fulfil their purpose: expanding opportunity, supporting enterprise, and anchoring development in the lived experience of citizens.
My fellow citizens, especially our young people and entrepreneurs, this moment belongs to you. The resilience shown during adjustment has created space for opportunity. Under the leadership of His Excellency President Hakainde Hichilema, we are stabilising the economy so that your effort, creativity, and ambition can flourish. The road ahead is steadier because of the economic management discipline which we are exercising today.
Thank you, and may God bless Zambia.
*Dr. Situmbeko Musokotwane, MP
Minister of Finance and National Planning