Musokotwane Helped Turn Zambia’s Economy Around. But Where Are the Jobs?

President Hakainde Hichilema has retained Dr Situmbeko Musokotwane as Minister of Finance and National Planning, keeping one of the central figures behind Zambia’s economic turnaround in charge for another term.

When Musokotwane took over in 2021, Zambia was dealing with a sovereign debt default, high inflation, a struggling kwacha and weak investor confidence. Five years later, the picture has changed considerably.

Much of Zambia’s targeted external debt has been restructured, inflation has fallen sharply, foreign exchange reserves have strengthened and the kwacha has staged a strong recovery. The IMF has described Zambia’s recent macroeconomic stabilisation as “hard-won.”

But Musokotwane’s second term could bring an even bigger test. Having helped stabilise the economy, the challenge now is turning those improving numbers into jobs, stronger businesses, higher household incomes and better living standards.

Government is betting heavily on increased copper production, agriculture, manufacturing and investment, while electricity shortages and Zambia’s continued vulnerability to climate shocks remain significant risks.

Musokotwane will also have to maintain fiscal discipline while the Government responds to growing expectations from Zambians who want the economic recovery to be felt beyond statistics.

In the first term, the task was largely about stopping the fall and restoring credibility. In the second, it will be about converting that recovery into growth people can actually feel.

With Hichilema placing his confidence in him once again, the spotlight remains firmly on Musokotwane.