By Jane Chanda
Finance minister Dr. Situmbeko Musokotwane has unveiled a K217.1 billion 2025 National budget, which he said is premised on economic recovery and promoting growth to enhance the well-being of citizens.
And the minister has announcement an increase in Constituency Development Funds (CDF) from K30.8million to K36.1million per constituency, despite him acknowledging audits which have cited abuse and illegal allowances in the administration of the fund.
Musokotwane also said the government will increase electricity tariffs (price of electricity) to attract investment in alternative energy
Presenting the 2025 National Budget at Parliament themed “Building Resilience for Inclusive Growth and Improved Livelihoods,” Dr Musokotwane said next year’s budget focus was on strategic investments and policy measures that would drive economic transformation, aligning with the Eight National Development Plan (8NDP).
He said its key objectives included attaining a real Gross Domestic Product (GDP) growth rate, reducing inflation, and maintaining international reserves above 3 months of import cover.
According to Dr Musokotwane, the boost was expected to have an impact on community development projects across Zambia’s 156 constituencies.
He said the CDF had been a game changer for many communities, enabling them to undertake vital projects such as building schools, health clinics, and water supply systems.
The minister said with this increased allocation, communities would have more resources to address their specific needs, promoting economic development and improving living standards.
“The fund’s effectiveness lies in its decentralization, allowing local authorities to identify and implement projects that directly benefit their constituents,” he said.
Dr Musokotwane however, warned council officials managing CDF accounts to eliminate red tape and address abuse, threatening stern action against those found wanting.
The minister also cited slow implementation of CDF due to misuse.
On economic objectives, Dr Musokotwane outlined the government’s economic objectives for 2024, focusing on stimulating growth and improving livelihoods. k
He said the key target was to reduce inflation to 6-8 percent, which was within the medium-term target band.
The minister added that the government aimd to limit borrowing and strengthen reserves to cover at least three months of imports, thereby enhancing economic stability.
He said this move was expected to promote a favorable business environment, attract investment, and support economic transformation.
Dr. Musokotwane said, maintaining international reserves above 3 months of import cover was crucial for Zambia’s economic progress.
He said by achieving these objectives, the government hoped to unlock Zambia’s economic potential and foster growth in various sectors.
The minister also said Zambia’s mining sector was poised for a major comeback.
Dr Musokotwane also said the government would incentivize investments and exploration in the sector, which was great news for major players like Konkola Copper Mines (KCM) and Mopani Copper Mines (MCM).
“We will revive the mining sector to drive economic growth, with investments and exploration incentives,” Dr. Musokotwane said.
He said this renewed focus on mining was expected to boost production at Mopani, which was forecasted to increase from 65,000 metric tonnes to 230,000 metric tonnes.
The minister said the mine’s new strategic equity partner, International Resources Holding (IRH), had already invested K39 billion, making it the country’s first substantial investment.
Dr Musokotwane also said KCM was also poised for growth with Vedanta Resources’ reinstatement and arrangement of USD 250 million funding to pay creditors.
He said with these developments, Zambia’s mining industry was looking to surpass the 1.5 million-tonne mark in the medium term.
In the agriculture sector, the minister said the government would improve the Farmer Input Support Program (FISP) ensure all eligible farmers are included, and migrate all farmers to the program.
He said investing in agriculture and mining would be crucial in driving economic growth and improving livelihoods,” he said. “By supporting these sectors, we can create a resilient economy that benefits all Zambians.”
He added that the government would address electricity deficits by importing power, promoting off-grid solutions, and investing in solar power stations, and support the sector through Multi-Facility Economic Zones due to the energy crisis.
He also said the government would support the sector through Multi-Facility Economic Zones due to energy crisis.
On infrastructure development, Dr Musokotwane said the government would upgrade and construct provincial airports at a cost of K700 million.
He said the government would also complete stalled hostels at UNZA and Copperbelt University at a cost of K3.5 million.
“Our universities will receive significant investments to improve infrastructure and provide quality education,” Dr. Musokotwane said.
The minister also said the government would construct 58 hostel blocks in various universities, creating 9,500 bed spaces.
On recruitment, the minister said the government would recruit 2,000 teachers and 2,000 frontline health workers in addition to those already recruited.
Dr Musokotwane also said the government had proposed to allocate K4.2 billion for pensions.
He said the move was expected to provide financial relief to retirees and pensioners across the country.
“The allocation is part of the government’s efforts to improve the livelihoods of its citizens, particularly those who have served the nation,” he said. “This allocation will ensure that our seniors and pensioners receive the support they deserve, enabling them to live dignified lives.”
Dr Musokotwane also announced plans to introduce 10 percent tax on betting, increase electricity tariffs to attract investment in alternative energy and implement digital medicines inventory system to prevent theft of medicines.
He said the government had allocated K317.2 million for continuous voter registration.
According to Musokotwane, this allocation would ensure that democratic processes were strengthened and that all eligible citizens could exercise their right to vote.
The minister said the total budget allocation of K217.1billion, represented 26 percent of GDP, with K174.2 billion financed by domestic revenue.
He said these measures were aimed at stimulating economic growth, improve livelihoods and enhance national development.
