TRYNESS TEMBO
Lusaka
THE Centre for Trade Policy and Development (CTPD) has called on Government to address binding risks that threaten to derail the nation’s economic recovery and policy stability.
The think tank identified several binding risks that must be addressed to safeguard Zambia’s economic recovery, prevent policy reversals, and translate macroeconomic stabilisation into durable and inclusive development.
Speaking during a town hall meeting to review the 2021–2025 economic performance, and the outlook for the 2026 budget, CTPD executive director Isaac Mwaipopo stated that the continued high cost of living and businessoperating pressures remain among the most critical risks.
He noted that although inflation has moderated, household purchasing power continues to be strained by high food, energy, housing and transport costs.
Mr Mwaipopo added that Zambia’s debt overhang remains a structural constraint.
While public debt declined sharply to about 91.9 percent of gross domestic product (GDP) in 2025 and is projected to fall to 79 percent in 2026, it remains above sustainability benchmarks.
Mr Mwaipopo stressed that completing the restructuring process ahead of the 2026 general elections is essential to restoring full market access, anchoring fiscal credibility, unlocking concessional financing, and strengthening resilience to external shocks.
He also warned that election-cycle spending poses significant risks to fiscal consolidation.
Mr Mwaipopo noted that the widening of the cash deficit from 3.3 percent of GDP in 2024 to about 5.3 percent in 2025 signals emerging fiscal slippages as the country approaches the 2026 elections.
“Historically, electionrelated pressures through subsidies, transfers, capital projects and public sector hiring have undermined fiscal discipline,” Mr Mwaipopo said.
He stated that without binding expenditure ceilings, stronger treasury single account controls, quarterly cash limits and robust parliamentary oversight, these pressures can reverse hard-won consolidation gains and destabilise inflation and macroeconomic expectations.
Mr Mwaipopo further highlighted persistently high unemployment and underemployment levels, particularly among youth, women and urban informal workers…https://enews.daily-mail.co.zm/welcome/home
