2027 budget targets production, infrastructure growth
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BusinessMinister of Finance and National Planning Situmbeko Musokotwane has unveiled an ambitious production and infrastructure expansion programme under the 2027 national budget, targeting increased electricity generation, agricultural output, mining production and tourism arrivals as…
Minister of Finance and National Planning Situmbeko Musokotwane has unveiled an ambitious production and infrastructure expansion programme under the 2027 national budget, targeting increased electricity generation, agricultural output, mining production and tourism arrivals as Government shifts its focus from economic stabilisation to accelerated growth.
Presenting the K284.8 billion 2027 Budget to Parliament themed ‘Grow Zambia: From Stabilisation to Unlocking Opportunities, Creating Jobs and Improving Livelihoods for All, Dr Musokotwane said Government plans to add more than 1,400 megawatts of electricity to the national grid in 2027, largely from non-hydropower sources.
He said Government would continue implementing cost-reflective electricity tariffs, strengthen Zesco’s operational and financial performance and expand investment in solar, thermal and other alternative energy sources.
The programme will also include transmission projects linking Zambia with Tanzania, Malawi and the Democratic Republic of Congo, while K391.3 million has been allocated to the Grid Resilience Programme to modernise electricity distribution infrastructure and improve power reliability.
Agriculture and livestock have been identified as major drivers of the growth agenda, accounting for five of its eight production targets.
These include producing 10 million tonnes of maize, three million tonnes of soya beans, one million tonnes each of wheat and sugar, and generating US$1 billion annually from beef exports.
To support the targets, Government has allocated K22.7 billion towards agriculture, fisheries and livestock interventions, including K9.1 billion for the Farmer Input Support Programme.
Dr Musokotwane announced plans to establish a Farm Block Development Agency to coordinate infrastructure development, attract private investment and promote productive utilisation of agricultural land.
He further said Government will also transition the Farmer Input Support Programme towards an agricultural loan scheme beginning in 2027, while expanding irrigation, mechanisation, access to affordable financing and out-grower arrangements.
In livestock, K100 million has been allocated for the establishment of beef compartments, alongside interventions in animal disease control, improved breeding, abattoir facilities and access to international markets.
Moreover, In the mining sector, Dr Musokotwane said the target would be supported by expansion programmes at major mines, including First Quantum Minerals, Barrick Lumwana, Konkola Copper Mines and Mopani Copper Mines, as well as the development of new projects such as Kitumba and KoBold.
The Minister has allocated K1.2 billion to mining-related activities, including K467.2 million for geological mapping and K450.7 million to support artisanal and small-scale miners.
Government will also establish a gold trading agency to formalise gold transactions and reduce mineral royalty from six percent to three percent for artisanal and small-scale miners selling through Government-approved aggregators.
Tourism is expected to benefit from measures aimed at increasing international arrivals to five million from 2.3 million recorded in 2025.
Dr Musokotwane said Government would work with the private sector to improve access to tourism destinations, strengthen destination marketing, diversify tourism products and attract international conferences, meetings and exhibitions.
The strategy will also involve packaging multiple tourism destinations into combined travel experiences, upgrading access roads and airports, and strengthening local supply chains for food, furniture, linen and crafts.
He noted that to encourage investment and reduce operating costs, Government has proposed suspending customs duty on safari vehicles, hospitality equipment and communications infrastructure used in tourism operations.
The Minister has allocated K1.4 billion to tourism programmes, with additional infrastructure investment expected to improve connectivity to major tourism destinations.
On infrastructure and aviation, Government plans to construct, upgrade and rehabilitate 787 kilometres of roads across the country in 2027, with priority projects including Kazungula-Sesheke, Kisasa-Mwinilunga and Chipata-Lundazi.
Construction of the Lobito railway line is expected to begin in the fourth quarter of 2027, while the rehabilitation of TAZARA will be accompanied by the development of a dry port at Kapiri Mposhi.
Government has allocated K18.1 billion towards road infrastructure and K2.4 billion for provincial airport development.
Mansa and Mfuwe airports are expected to be completed in 2027, while construction works at Nakonde will continue.
Construction of Choma Airport and upgrades at Chipata, Mongu and Solwezi airports are also expected to commence next year.
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