Man for the job

The 70-year-old economist also returns to the 14th National Assembly as member of Parliament for Liuwa, a seat he has held since 2011.

He initially won the Liuwa seat under the Movement for Multi-Party Democracy (MMD), before retaining it under the UPND banner in 2016.

He previously served as minister of Finance from 2008 to 2011 under President Rupiah Banda, before returning to head the ministry in 2021.

The seasoned minister of Finance took office on the same day as ministers of Foreign Affairs and International Cooperation, Mulambo Haimbe; Green Economy and Environment, Gilbert Siame; and Health, Roma Chilengi.

Swearing in the quartet, President Hichilema said while his administration’s first term focused on heavy lifting to address inherited macroeconomic instability, the new mandate centres on results, execution, and protecting public funds.

He therefore challenged Dr Musokotwane to ensure that macroeconomic gains translate into tangible improvements for ordinary citizens over the next five years.

President Hichilema pointed out that his administration’s initial tenure was dedicated to structural recovery, therefore, the current mandate demands immediate results, strict fiscal discipline, and swift execution.

He urged ministers to devote their time to project delivery rather than administrative delays.

He added that the benefits of national growth must reach ordinary Zambians through collective social empowerment rather than cash handouts.

“Maintain fiscal discipline, protect every kwacha, and let us make economic growth felt by ordinary citizens the same way people are feeling the benefits of free education,” he said.

Economic gains in first term

In the last five years of Dr Musokotwane’s leadership as Finance minister, Zambia engineered a historic reversal of its economic fortunes, overcoming a severe debt crisis that had previously made international headlines.

The country’s financial troubles reached their peak under the Patriotic Front (PF) administration in late 2020.

Amid the COVID-19 pandemic, a missed US$42.5 million Eurobond coupon payment made Zambia the first African nation to default on its sovereign bonds.

A period of severe economic hardship followed, characterised by soaring inflation, market stagnation, and widespread fiscal pressures.

Credit rating agencies responded swiftly; Fitch Ratings placed the country in restricted default status, effectively cutting off access to international capital markets and escalating borrowing costs.

When the UPND administration assumed office in August 2021, the nation’s public debt inherited from the PF regime had escalated to an unsustainable US$14.67 billion.

Upon taking office, President Hichilema appointed Dr Musokotwane to head the Ministry of Finance and National Planning, placing him in direct charge of resolving the crisis.

Turning the economy around immediately became one of the minister’s defining missions.

Dr Musokotwane spearheaded complex negotiations through the G20 Common Framework for Debt Treatment to bring traditional Western creditors and non-traditional lenders like China to a common agreement.

His diplomatic efforts bore fruit in June 2023 when official bilateral creditors agreed to restructure US$6.3 billion in debt.

He maintained this momentum into March 2024, reaching a breakthrough deal with commercial Eurobond holders to restructure US$3 billion in international bonds, which culminated in a formal bond exchange in June 2024.

Parallel to these negotiations, Dr Musokotwane anchored the national recovery to an Extended Credit Facility with the International Monetary Fund.

Spanning from September 2022 to its successful conclusion in January 2026, his programme of strict fiscal management, subsidy rationalisation, and enhanced domestic revenue generation unlocked an expanded US$1.7 billion package.

These interventions successfully reversed the default era, restoring international market confidence and prompting rating agencies to upgrade Zambia’s sovereign status out of default territory.

Most importantly, Dr Musokotwane’s strategy reduced the nation’s annual external debt servicing burden from US$2.3 billion down to US$900 million, unlocking vital treasury funds for essential public services and social development.

New expectations

Commenting on Dr Musokotwane’s track record and reappointment, renowned economist Lubinda Haabazoka noted that his disciplined macroeconomic management was central to restoring stability during his initial tenure.

Professor Haabazoka noted that the UPND administration successfully brought annual inflation down from double digits of 24 percent to a single digit, reaching six percent in 2026.

He added that the Ministry of Finance and National Planning successfully contained exchange rate volatility, moving the Kwacha from peak levels near K28 down to under K18 per US$ dollar, and addressed the severe sovereign debt overhang.

Furthermore, he noted that the New Dawn administration initiated proactive debt servicing prior to maturity, citing payments toward Eurobond obligations as a key example.

“His performance was excellent in the first term. His fiscal discipline is going to be needed going forward as the government implements the Grow Zambia Agenda,” Dr Haabazoka said.

Having navigated debt restructuring and restored international credibility, Dr Musokotwane faces a new priority.

The focus now turns to translating macroeconomic stability into tangible economic opportunities and improved livelihoods for ordinary Zambians. https://enews.daily-mail.co.zm/welcome/home