Ministry of Information and Media - Zambia

06/09/2026

SUGAR WILL TRANSFORM ZAMBIA’S ECONOMY

Sugar is the latest industry to be added to Zambia’s Grow Zambia agenda, with a target of producing 1 million metric tonnes by 2031 alongside maize, soya beans, wheat, copper, electricity, tourism and beef.

The timing is significant because President Hakainde Hichilema has already demonstrated a clear understanding of how the sugar industry can contribute to the wider economy.

At the inaugural Invest in Zambia Conference in Lusaka, President Hichilema pointed to the restructuring of Zambia Sugar and the changes it was bringing to the business.

Six months later, the company reached a market capitalisation of more than US$1 billion on the Lusaka Securities Exchange.
In January 2026, Zambia Sugar crossed the US$1 billion market capitalisation mark on the Lusaka Securities Exchange. It became only the third company listed on the exchange to reach that level at the time, after Copperbelt Energy Corporation and ZCCM Investments Holdings. Airtel Zambia later became the fourth.

That milestone matters. Zambia Sugar became the first company outside the mining and energy sectors to reach a billion-dollar valuation on the local stock exchange, showing the scale that can be achieved through agriculture and agro-processing.

It provides a real reference point for the President’s ambition to more than double the size of Zambia’s economy.

The sugar industry is also growing beyond one company. Outgrower schemes have expanded opportunities for farmers to participate in the value chain, while investments at Kawambwa Sugar and Mansa Sugar are creating additional production capacity in other parts of the country.

This is why sugar has a much bigger place in the Grow Zambia agenda than the one-million-tonne figure suggests.

Of the eight targets, four are directly tied to agriculture: maize, soya beans, wheat and now sugar. That reflects the scale of the opportunity in a sector that can connect farmers, processing industries, manufacturers, transporters, workers and exporters to economic growth.

The country already has the foundation. The task now is to take that foundation to a much higher level.

Sugar provides a practical example of what that could look like: an agricultural industry capable of supporting regional economies, attracting investment, creating value beyond the farm and producing companies that can reach billion-dollar valuations.

The one-million-tonne target is therefore part of a much bigger ambition — to make agriculture one of the engines of Zambia’s economic diversification and a major contributor to the President’s goal of building a larger, more productive economy.

06/09/2026

K16.1 BILLION FOR PUBLIC SERVICES, DEBT SERVICE AND SOCIAL PROGRAMMES

The Government of the Republic of Zambia released K16.1 billion in August 2026 to finance public service delivery, meet debt and other financial obligations, sustain social protection programs, and support ongoing infrastructure development.

At his inauguration on Tuesday, 1st September, 2026, PRESIDENT HAKAINDE HICHILEMA outlined the Government’s direction, which is, to consolidate the gains from economic stabilization and propel Zambia into a stronger phase of growth, investment, economic expansion, and opportunity.

As the country advances through this phase, sustained will remain fundamental to preserving stability, strengthening confidence, and supporting durable, inclusive growth.

Accordingly, the Government will remain committed to ensuring that debt sustainability and prudent management of public resources go hand in hand with protecting essential services, supporting vulnerable households, strengthening productive infrastructure, and creating conditions for private investment and enterprise development.

The August budget releases therefore reflect continued implementation of the 2026 National Budget within a framework that balances fiscal stability with the Government’s broader objective of translating macroeconomic progress into tangible improvements in household welfare, public services and economic opportunity.

This approach is consistent with the Government’s medium-term direction under the , which seeks to build on the economic stabilization platform through expansion, productive investment, employment creation and stronger domestic capacity to finance national development.

August Budget Releases

Of the K16.1 billion released during the month, K7.6 billion was directed toward debt service and the dismantling of domestic arrears, while K4.1 billion financed the Public Service wage bill and related obligations.

A further K1.8 billion supported Government programs and general operations, K1.7 billion was released for transfers, subsidies and social benefits, and K896.4 million financed capital expenditure.

Debt Service and Arrears–The Government released K7.6 billion toward debt and other liabilities as part of its continuing commitment to meeting financial obligations and reducing indebtedness, of which, K6.5 billion was allocated to domestic debt service, K253 million to external debt service and K814 million toward the dismantling of domestic arrears.

The Treasury asserts that timely debt service and the clearance of verified arrears remain important to strengthening fiscal credibility, supporting confidence in the management of public resources, and improving liquidity conditions for businesses and other entities owed money by the Government.

Social Protection, Health and Grant-Aided Institutions–The Government released K1.7 billion for transfers, subsidies and social benefits. Among the notable recipient-programmes was the Social Cash Transfer, which provides income support to vulnerable households, and grant-aided institutions such as hospitals.

The releases to this component demonstrate the Government’s continued commitment to protecting critical social expenditure while maintaining fiscal discipline, particularly in areas directly affecting household welfare and access to essential services.

The allocations are also consistent with the Government’s medium-term objective of ensuring that economic stabilization and growth translate into improved living conditions, stronger social protection and greater access to essential public services.

Government Programs and Operations–A further K1.8 billion was released to facilitate implementation of Government programs and general operations.

This included K249.8 million for the Electoral Commission of Zambia to support the conduct of the 2026 General Elections, K200 million for compensation and awards, and K130 million for the procurement of drugs and medical equipment.

The releases helped sustain core Government functions while providing resources for important health and institutional obligations.

Infrastructure Investment–The Government also released K896.4 million for capital expenditure and other ongoing infrastructure programs.

Of this amount, K598.4 million was directed toward road infrastructure, while K298 million was allocated to finance ongoing infrastructure projects across the country. Consistent with the ongoing transformation of the economy, the Government is determined to sustain investment in productive infrastructure as a key pillar of the transition from stabilization to growth.

A cardinal factor is, improving connectivity and creating the foundations for increased productivity, investment, and economic activity by the private sector.

Public Service Wage Bill–A total of K4.1 billion was released for Personal Emoluments and allowances for diplomatic staff serving in Zambia’s missions abroad.

The allocation supported the continued payment of salaries and related obligations across the Public Service, enabling Government institutions to maintain the delivery of essential services to citizens.

Timely releases to this component over the last five years demonstrate the Government’s commitment to building an effective, efficient and delivery-oriented Public Service while strengthening accountability and ensuring that public resources are managed prudently and applied for the benefit of citizens.

Conclusion

The Treasury will continue to manage budget ex*****on prudently, safeguard fiscal sustainability and direct available resources toward public services, vulnerable households, Government operations and productive infrastructure as Zambia advances from economic stabilization to stronger, more inclusive and sustainable growth.

Key to sustaining this transition is the 2027–2031 Medium-Term Revenue Strategy. The Government therefore urges businesses, professional bodies, civil society, development partners and citizens to actively participate in shaping the Strategy by submitting evidence on untapped revenue potential, identifying barriers to compliance and investment, and proposing practical reforms that can broaden the revenue base without undermining growth.

The ongoing consultations are an opportunity to help build a fairer, more predictable and growth-supportive revenue system that strengthens compliance, improves public trust and expands Zambia’s capacity to finance national development from domestic resources.

No doubt, a stronger revenue framework will help finance infrastructure, human development and social protection while reducing the risk of renewed dependence on unsustainable borrowing.

Prudent expenditure, stronger domestic revenue mobilisation, and sustained growth must therefore reinforce each other to enable the country to facilitate its own development agenda.

//Ends

05/09/2026

PRESS STATEMENT
For Immediate Release

UNITED STATES EXIM BANK RE-OPENS COMMERCIAL CREDIT LINES TO ZAMBIA’S PRIVATE SECTOR AS PRESIDENT TRUMP SIGNS AGOA EXTENSION THROUGH 2028

WASHINGTON, D.C., September 5th, 2026 –

The Embassy of the Republic of Zambia in Washington, D.C., wishes to announce a monumental double-victory for Zambia's private sector and export economy, following a formal policy revision by the United States government.

The U.S. Export-Import (EXIM) Bank has officially amended its Country Limitation Schedule (CLS) to re-open credit and insurance facilities for short-term trade transactions within Zambia’s private sector. This long-awaited update follows closely on the heels of the U.S. Congress passing and President Donald J. Trump assenting to the AGOA Extension Act, legally protecting Zambia's duty-free market access to the United States through December 2028.

A decisive Vote of Confidence commenting on these developments, Zambia’s Ambassador to the United States, His Excellency Ambassador Chibamba Kanyama, stated that the policy synchronization represents an unmistakable validation of Zambia’s ongoing macroeconomic adjustments and structural stability.

"This is a powerful vote of confidence from Washington," Amb. Kanyama noted.

"By re-opening short-term commercial financing lines and guaranteeing tariff-free market entry via AGOA, the United States is moving beyond the optics of development aid into a framework of deep, production-driven commercial partnership. Our local businesses now possess a direct financial runway to scale up operations."

The Embassy wishes to highlight the operational mechanics of these policy shifts for the benefit of the Zambian business community:
• Empowering Local Importers: Zambian private enterprises seeking to import specialized equipment, heavy agricultural machinery, medical technology, or raw industrial materials from the United States can now do so with competitive payment terms, as American exporters can fully secure U.S. federal trade insurance to back their contracts.
• The Short-Term Africa Initiative (Note ): Zambia’s inclusion under this specialized U.S. treasury initiative ensures that bilateral trade applications are fast-tracked under optimized regional risk parameters designed to aggressively expand sub-Saharan economic corridors.
• Prudent Oversight (Note #1): In line with global practices regarding newly re-opened financing markets, the U.S. EXIM Bank will process applications under initial case-by-case reviews (Note #1) rather than blanket automatic credit approvals. This ensures a transparent, secure, and structured credit portfolio as commercial ties expand.
• The AGOA Industrial Blueprint: With President Trump’s sign-off ensuring tariff-free entry for over 1,800 local commodities through December 2028, Zambian manufacturers are urged to use newly accessible EXIM credit machinery to boost local production capabilities and expand volume output destined for high-value American consumer markets.

Strategic Sectors and Immediate Action Plan, the Embassy projects that the immediate beneficiaries of these coupled credit frameworks will span critical sectors including agriculture, value-added agro-processing, advanced manufacturing, healthcare logistics, and technical infrastructure.

To ensure that local commerce capitalizes on these updates immediately, the Embassy in Washington, D.C., is initiating a coordinated deployment strategy alongside the Zambia Chamber of Commerce and Industry (ZACCI) and local commercial banking institutions. The Embassy will host targeted technical brief sessions to guide Zambian entrepreneurs through the exact regulatory blueprints necessary to structure credit applications.

The Embassy remains resolutely committed to ensuring that these administrative policy victories translate directly into domestic industrial expansion, technology transfer, and job creation for the citizens of Zambia.

Issued by
Charles Tembo
First Secretary – Press and Public Relations
Embassy of the Republic of Zambia, Washington, D.C.

05/09/2026

ZAMBIA’S BILLION-DOLLAR AGRICULTURAL EXPORT OPPORTUNITY

Government is looking to grow Zambia’s economy beyond maize, wheat and soya in the agricultural sector.

Deputy Secretary to the Cabinet for Finance and Economic Development, Siazongo Siakalenge, visited Khal Amazi in Chongwe to see what horticulture can add to President Hakainde Hichilema’s Grow Zambia agenda.
Khal Amazi is one of Southern Africa’s largest rose producers of its kind. Established in 1996, it now has 64 hectares of export roses going to European markets, about 162 million stems a year, and plans to raise that to 200 million. At its peak, the industry earned close to US$75 million a year. In 2025, Zambia’s agricultural exports crossed US$1.1 billion for the first time in a decade.

A new blueberry farm planned for a new area starts at 100 hectares and could grow towards 600. On just 7 hectares, current blueberry exports are already about US$1 million a year.

The flower industry employs about 1,000 people at the farm.

Grow Zambia is not limited to the eight pillars already named. Those targets set the scale. The work is also to unlock existing sub-sectors that are already producing, employing and exporting.
The President’s argument is clear: Zambia does not first need to open new land. It must remove the barriers that stop existing farms from reaching their full potential — power, finance, VAT refunds, labour compliance and market access.

Government’s role is to create that environment. The private sector’s role is to produce.

Chongwe already has a working export business. The visit was about protecting it, expanding it, and making that kind of success more common across Zambia.

05/09/2026

04/09/2026

MORE ELECTRICITY BEING ADDED TO ZAMBIA’S GRID

More electricity is being added to Zambia’s national grid as Government and private investors expand generation capacity to meet the demands of a growing economy.

In the last five years, Zambia’s installed electricity generation capacity has increased from about 3,100 megawatts in 2021 to 4,576 megawatts in 2026. That is an increase of about 1,476 megawatts.

The expansion is changing the way Zambia is approaching electricity. Power is no longer being treated simply as something the country needs to keep households connected. It is increasingly being treated as an economic resource that will support mining, agriculture, manufacturing, irrigation, agro-processing and other productive activities as the country works to grow its economy.

Government has taken note of continued concerns over water levels at Kariba, particularly because Zambia has historically depended heavily on hydropower. But the response has been to learn from that experience and build a more diversified electricity system.

One of the clearest signs of that change is the growth of solar power. Solar generation capacity has increased from about 88 megawatts in 2021 to about 841 megawatts in 2026. Government’s target is to add enough solar capacity to reach 1,000 megawatts by the end of 2026.

This means the expansion of electricity is no longer dependent on one source. Zambia is adding solar while continuing to develop hydro, thermal, wind, geothermal and other forms of generation. Independent power producers are also investing in new projects, increasing the amount of private capital going into the electricity sector.

In Southern Province, several major projects illustrate the scale of this expansion.

Ezra Energy is constructing a 400-megawatt thermal power project in Sinazongwe. The project will add significant baseload generation and reduce the country’s exposure to the effects of drought on hydropower.

In Livingstone, the first phase of the 135-megawatt Gouli Energy project is expected to undergo technical commissioning in October, with the second phase expected around the middle of next year. Once both phases are completed, the project will add 270 megawatts to the electricity supply.

Sinazongwe is also becoming a major centre of new electricity generation. Maamba Energy is expanding its thermal generation capacity while also developing a 100-megawatt solar project. A further 600-megawatt power project is also being developed in the area as part of the wider expansion of generation capacity.

These projects show why the discussion around electricity is changing. The question is no longer only whether Zambia has enough power for today’s consumption. The bigger question is how much electricity the country will need to support the expansion of production.

A larger economy will require more electricity.

If Zambia is going to produce more maize and soya beans, there must be power for irrigation, milling, storage and processing. If the country is going to increase copper production, mines and mineral processing facilities will require reliable electricity. Manufacturing, tourism, construction, cold storage, water supply and new businesses will all add to electricity demand.

This is why Government’s electricity strategy is being built around expansion rather than simply managing shortages.

The Presidential Constituency Energy Initiative is another part of that effort. Under the programme, 2 megawatts of solar generation is planned for each of the country’s 156 constituencies, giving a potential 312 megawatts of additional generation. The intention is to support local electricity supply and productive activities within communities.

The wider objective is to ensure that electricity reaches places where it can support economic activity. That means power for irrigation schemes, agro-processing, milling, refrigeration, workshops, small businesses and other enterprises that can create jobs and generate income.

The progress in solar is particularly important because it demonstrates that Zambia’s electricity system is changing from the model people became accustomed to, where hydropower carried much of the burden and low water levels could quickly translate into a national electricity problem.

That lesson has already been learned.

The answer is diversification.

It is also investment. Government is creating the policy and regulatory environment for independent power producers to enter the market and develop generation projects. The private sector is responding with projects across the country, while Government continues to invest in public infrastructure and grid expansion.

The goal is to move electricity from being viewed mainly through the experience of load shedding to being understood as one of the foundations of Zambia’s growth.

For the Grow Zambia agenda to succeed, the country will need more power than it has today. The economy cannot expand significantly while electricity generation remains tied to the limitations of a single major source.

Zambia therefore has to build ahead of demand.

The 1,000-megawatt solar target for the end of 2026, the increase in installed generation from 3,100 megawatts to 4,576 megawatts over the last five years, and the major projects under construction across Southern Province are part of that shift.

The focus is increasingly on what electricity can produce, how much economic activity it can support and, ultimately, how much value Zambia can create from having more power available.

Load shedding belongs to the lessons that shaped this new approach.

The bigger task now is to build an electricity system capable of powering the Zambia that Government wants to create.

04/09/2026

ZAMBIA REAFFIRMS ITS COMMITMENT TO HUMAN RIGHTS, THE RULE OF LAW AND CONSTITUTIONAL SOVEREIGNTY

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