Sustaining growth requires policy stability in 2026
Zambian Social Economist Kelvin Chisanga
By Kelvin Chisanga
Zambia’s policy environment and outlook for 2026 points to continuity, discipline and measured reform rather than abrupt shifts.
The monetary policy is expected to remain cautiously accommodative, with gradual interest rate easing anchored on inflation control and exchange rate stability.
The Bank of Zambia (BoZ) is likely to prioritize data-driven decisions to protect recent gains in price stability and confidence.
On the fiscal side, consolidation remains the dominant theme.
The Government policy is expected to focus on expenditure quality, improved revenue efficiency and containment of recurrent costs, supported by International Monetary Fund (IMF) programme discipline.
This approach reduces domestic borrowing pressures and creates space for private sector credit.
Externally, post-debt restructuring policy will emphasize prudence, with limited size of non-concessional borrowing and stronger project appraisal.
Exchange rate policy will remain market-determined, with interventions limited to smoothing volatility as reserves strengthen.
Structurally, 2026 will deepen reforms in energy, agriculture, mining and manufacturing, prioritising cost-reflective pricing models, export competitiveness and policy consistency.
Overall, the policy direction signals a transition from recovery to consolidation, reinforcing macroeconomic stability, investor confidence and sustainable growth. Wednesday, 4th February, 2026/ Zambian Developmental Media Alliance (ZADEMA)/ Zambian Children Young People and Women in Development (ZCYPWD), Journalists Against Piracy in Zambia (JAPIZ).
About The Author
