ZAMBIA Trends and Developments Contributed by: Joseph Jalasi, Mailesi Undi, Chama Simbeye and Wana Chinyemba, Dentons Eric Silwamba, Jalasi & Linyama Legal Practitioners
Dentons Eric Silwamba, Jalasi & Linyama Legal Practitioners William Burton Place No 12 Chilekwa Mwamba Road Off Lubu/Saise Roads Longacres
Lusaka Zambia
Tel: +260 211 256530 Fax: +260 211 256372 Email: info.zambia@dentons.com Web: www.dentons.com/en/dentons-eric-silwamba-jalasi- and-linyama
The 2026 National Budget: “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia” The 2026 budget, presented under the theme “Con - solidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia”, signals a clear pivot toward investment-friendly reform and macro-stability. Total expenditure of ZMW253.1 billion (approximately 27.4% of GDP) marks a meaningful increase from the prior year’s plan. The government projects GDP growth of roughly 6.4% in 2026, driven by mining, agriculture and ICT sector expansion. From an investor’s perspective, key takeaways include: • enhanced support for economic zones and value- addition manufacturing, with several new multi- facility zones backed by over USD3 billion in com - mitted investment; • a continued commitment to infrastructure and energy diversification, including plans to add ~1,500 MW of solar capacity and expand logistics and transport links, which create opportunities for private participation and PPP structuring; • a targeted fiscal deficit of 2.1% of GDP, underscor - ing Zambia’s drive to maintain fiscal discipline and bolster investor confidence in public-financing sustainability; and • tax and regulatory incentives extended to value- addition in sectors such as dairy, hides/skins and light manufacturing, signalling that investors able to integrate local supply chains may access prefer - ential treatment.
In sum, the 2026 budget frames Zambia as a jurisdic - tion moving from crisis management to consolidation and selective growth acceleration, making it particu - larly relevant for strategic investors seeking entry into mining value chains, infrastructure renewables, manu - facturing clusters and ICT platforms. From Drought to Drill-Down: Zambia’s Mining Boom Powers Economic Rebound Zambia’s economic outlook for 2025 is closely linked to the upward trend in global commodity markets. After experiencing challenges in 2023–2024, includ - ing drought conditions, limited power supply, and fiscal constraints, the country achieved a 4.5% GDP growth rate in Q1 2025, an improvement from the pre - vious year’s 2.2%. This recovery has been driven by increased copper production, expanded agricultural investments, and renewed momentum in the ICT and trade sectors. Inflation declined to 12.3% in Sep - tember 2025, contributing to a stronger kwacha and bolstering investor confidence. Copper prices have remained steady at levels above USD8,000 per tonne, positioning Zambia’s mining industry as a key driver of economic expansion. This resurgence is supported by advances in debt restructuring and enhanced macro - economic governance. The renewed activity is fuelling opportunities for merg - ers and acquisitions, cross-border financing and pub - lic–private partnerships within mining logistics and infrastructure. The country has seen an increase in joint ventures, offtake agreements as international
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