ZAMBIA 'S ECONOMIC STABILITY HINGES ON REAL-SECTOR INVESTMENT 

By Daily News Reporter 

Zambia Institute For Policy Analysis and Research (ZIPAR) Interim Executive Director Mr. Zali Chikuba stated that Zambia's economy is facing challenges with exchange rate volatility, impacting food prices, fuel costs, and export competitiveness. 

Speaking during at the Launch of Role of Real Investments in Stabilising the Exchange Rate in Zambia Report in Lusaka Mr Chikuba stated that the highlights the need for diversification, citing investments in manufacturing, agriculture, and energy as key to stabilizing the economy.

He also said that they is need to reduce dependence on single commodities which can mitigate external shocks and Some initiatives have failed due to lack of backing Small scale Mining like Zambia face hurdles in a volatile economy.

Ministry of Commerce and trade industry Permanent secretary Mr Crusivia Hichikumba stated that This dependence on a single commodity goes to underscore the importance of broadening the productive space, thereby strengthening resilience against external shocks. Recent economic developments have underscored a key lesson.

Mr Hichikumba stated that sustainable exchange stability cannot be achieved through monetary and fiscal policy measures alone. It must be supported by a productive, diversified and export-oriented real economy. 

"It is for this reason that the government continues to prioritize investment in key productive sectors including mining, manufacturing, tourism," Mr Hichikumba added.

He also said that The Ministry of Commerce, Trade and Industry is facilitating investments in all sectors of the economy through a number of initiatives and measures. These include in the area of policy,

The Ministry has developed various policies such as the National Industrial Policy and Trade Policy which have guided our economic policy interventions in the past and they continue to do so and has paid particular attention on foreign domestic investments into Zambia.

 In terms of regulatory frameworks, the Ministry enacted the Investment, Trade and Business Development Act.

"With regard to local manufacturing, the Ministry has been implementing Statutory Instrument No. 110 of 2020, which provides for the suspension of customs duty on imported raw materials which are not available in Zambia. The objective is to boost local manufacturing, create employment opportunities and lower product costs by making inputs cheaper for manufacturers". Mr Hichikumba said 

He further stated that government has developed the statutory instrument number 45 of 2025 in the brackets preference and reservation schemes which is targeting the key areas including manufacturing . 

And ZIPAR RESEARCH TEAM led by Dr. Joseph Phiri Acting Deputy Director - Fiscal, Monetary, Financial and External Sector and Ms Margaret Mbewe Mwanza Research Fellow presented the Report on which they recommended that they is need to secure Energy supply and improve efficiency by ensuring they is reliable and diversified energy supply which is critical for production and foreign -exchange generation. 

And that government should accelerate renewable energy investments via public - private Partnerships and power purchase agreements, reduce resilience hydropower, and encourage domestic biofuel production.

 They also urged the  Government to enhance trade integration and export diversification through a proactive trade policy that strengthen exports competiveness and diversifies foreign exchange sources.