The 2027 National Budget should prioritise private sector investment, increased production and value addition to support Zambia’s economic growth agenda. The budget should also maintain fiscal discipline and provide a predictable business environment to encourage investment in…

The 2027 National Budget should prioritise private sector investment, increased production and value addition to support Zambia’s economic growth agenda.

The budget should also maintain fiscal discipline and provide a predictable business environment to encourage investment in key sectors such as mining, agriculture, tourism and manufacturing.

In an interview with the media Economist Kelvin Chisanga says tax incentives and some reduction in the tax burden are necessary to stimulate private sector investment and expand production.

Mr Chisanga said Zambia needs to place greater emphasis on value addition, particularly in sectors where the country continues to rely on primary products.

He noted that the energy sector also requires special policy attention to address electricity supply challenges and support productive activities.

Meanwhile, Mr Chisanga observed  there is need for a special budgetary provision to address drought-related challenges through contingency interventions.

He indicated that although the country is in a relatively comfortable position regarding food requirements for the next season due to the Food Reserve Agency’s purchasing efforts, attention should also be given to agricultural inputs and other related costs.

He noted that borrowing from both domestic and external markets should be linked to productive activities that can generate economic growth, and that the budget should build on the economic stability achieved so far, while placing greater emphasis on production, investment and sustainable economic growth.