President Hakainde Hichilema has highlighted significant progress in Zambia’s economic recovery, pointing to stability in the kwacha, a decline in inflation, and the successful completion of the IMF’s Extended Credit Facility Programme. In January 2026, inflation eased to 9.4 percent, down from 11.2 percent in December 2025, marking the first time since August 2023 that inflation has returned to single digits. This improvement signals reduced pressure on household budgets and growing confidence in the country’s economic management.
The President praised Zambians for their patience and resilience throughout the recovery process. He emphasized that these results are the outcome of prudent fiscal management and structural reforms now recognised by the IMF. “In 2021, our country was in default. Today, we are on the path to prosperity,” he stated, noting that four years of reforms have laid the foundation for sustainable growth. The IMF has confirmed Zambia’s positive economic trajectory, projecting real GDP growth at 5.8 percent in 2026, while public debt has fallen from 112 percent of GDP in 2021 to a projected 78 percent this year.
President Hichilema highlighted the social benefits of improved fiscal health, including increased investment in programmes such as FISP, free education, expanded CDF allocations, and reintroduced university bursaries. Lower debt and interest payments free resources for clinics, schools, and infrastructure, creating opportunities for families and communities.
While acknowledging that more work remains, the President expressed optimism that Zambia is now well-positioned to accelerate job creation, ensure reliable energy, and unlock opportunities for youth. He called on citizens to continue working together to “bring in the harvest” of reforms, translating economic stability into tangible improvements in living standards nationwide.