Zambia holds election amid debt restructuring, inflation and copper revenue concerns

The National Assembly is set to vote on a comprehensive debt‑restructuring package that will also address rising inflation and the country’s copper‑revenue outlook. The proposal, drafted by the Ministry of Finance, seeks to extend the maturity of the nation’s sovereign debt, reduce interest costs, and create a more predictable fiscal framework for the next decade.

Inflation has climbed to 7.2 % over the past year, eroding purchasing power and tightening the central bank’s policy stance. Meanwhile, copper exports – which account for roughly 40 % of export earnings – have experienced a 12 % decline in revenue due to lower global prices and a slowdown in demand from major buyers. The vote will determine whether the government can secure more favorable debt terms while simultaneously tightening fiscal discipline to curb inflationary pressures.

If approved, the restructuring plan would free up an estimated 3 % of the annual budget for social spending and infrastructure investment, while the accompanying inflation‑targeting measures could help stabilize prices. The outcome is expected to shape the country’s economic trajectory for the next several years, balancing debt sustainability with the need to support growth in the copper sector.