• Programme targets fiscal stability, private investment, and climate resilience

• Growth outlook improves, but debt, climate risks, and reliance on mining persist

The World Bank has approved a $45 million payment to support Zambia’s macroeconomic reform programme, the country’s Ministry of Finance and National Planning said on Monday.

The funding is part of the second Development Policy Operation (DPO) focused on climate and economic resilience. The ministry said the programme is structured around three interlinked pillars, building on reforms already implemented by the government. These include fiscal management and economic resilience, boosting private sector investment and infrastructure, and strengthening disaster risk management and climate resilience.

Zambia’s economy is showing signs of stabilising following a series of reforms aimed at restoring fiscal and debt sustainability, implemented with support from international partners. Public debt is expected to fall from 133% of gross domestic product (GDP) in 2023 to 90.7% in 2025, according to the World Bank.

Economic growth is projected to average 6.5% over 2026–2027, compared with 5.8% in 2025, supported by agriculture, industry and services linked to the mining and tourism sectors.

However, the country continues to face challenges, including climate risks, hydropower shortages and heavy reliance on mining. Financing needs for development and poverty reduction remain significant.

Authorities say stronger growth will depend on the effective implementation of reforms under a programme supported by the International Monetary Fund (IMF), as the government seeks to maintain fiscal discipline, improve resilience to climate shocks and create conditions for private sector-led growth.

Lydie Mobio