According to Zambia’s finance minister, Situmbeko Musokotwane, the Southern African country is banking on its mining industry for an economic recovery, following a severe slowdown in development this year due to the worst drought in recorded history.
He made this known on Tuesday, during an event on the economic outlook, noting that new mines are launching soon, and older mines are set to receive investments to increase output.
“If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward,” he said.
According to data from the Zambian government, copper production increased from 698,000 tons in 2023 to over 770,000 tons last year.
Next year Zambia hopes to increase copper production to around 1 million tons, and eventually, to 3 million tons.
Based on a presentation given by the finance ministry at the event, government officials were hopeful that 2025’s economic growth would reach 6.6%.
Due to the drought’s impacts, the government has lowered its 2024 growth projection from the 2.3% prediction issued in September to 1.2%, according to the presentation.
The Southern African country is still en route to target a budget deficit of 3.1% of GDP this year, which is greater than the most recent estimate of last year’s deficit, currently 2.7% of GDP, as seen on Reuters.
Zambia which was the first African country to default on its sovereign debt during the COVID-19 pandemic, has accepted restructuring conditions for 90% of its foreign debt, according to the presentation.
The finance minister relayed that Zambian officials, including the secretary of the Treasury and the governor of the Central Bank, are in China to negotiate some of the country’s outstanding debt.
