Cabinet Shifts from Economic Stabilisation to Growth

The Hakainde Hichilema administration has set out its economic direction for the second term, with Cabinet approving the Budget Policy Concept Paper for the 2027–2029 Medium-Term Budget Plan and the 2027 National Budget.

The first Cabinet meeting of the second term, held at State House on Monday, agreed that Government will now move from the stabilisation agenda of the past five years to an aggressive growth agenda under the Grow Zambia Agenda.

At the centre of the strategy is the 10-10-5-3-3-1-1-1 production target—10 million tonnes of maize, 10,000 megawatts of electricity, 5 million tourist arrivals, 3 million tonnes each of copper and soya beans, 1 million tonnes of wheat, 1 million tonnes of sugar, and one billion U.S. dollars in beef export revenue.

Cabinet says the medium-term focus will be on higher and resilient economic growth and job creation, while maintaining single-digit inflation, a stable exchange rate and international reserves above three months of import cover.

Government will also continue with fiscal consolidation by reducing budget deficits, strengthening domestic revenue mobilisation, broadening the tax base and improving tax compliance through digital systems, while pursuing concessional and climate-related financing to manage debt risks.

The expenditure strategy will prioritise investments in transport, water, energy and ICT, alongside human capital development through health, education and social protection, while climate-resilient projects will be integrated into national planning and budgeting.

Cabinet has consequently called for hard work from the Public Service and citizens alike to drive the country’s new growth-focused agenda.