President Hakainde Hichilema’s first term may be remembered as one of the most aggressive economic stabilization periods in Zambia’s recent history.
When he took office in 2021:
• Zambia was in debt default,
• inflation was high,
• investor confidence had collapsed,
• and the Kwacha was under severe pressure.
Instead of relying on populist spending, the government focused on:
✓ IMF-backed reforms,
✓ debt restructuring,
✓ fiscal discipline,
✓ rebuilding foreign exchange reserves,
✓ stabilizing the exchange rate,
✓ and restoring investor confidence.
Key statistics and outcomes:
• Zambia secured a US$1.3 billion IMF programme.
• Foreign exchange reserves grew to approximately US$6.5 billion, the strongest reserve positions Zambia has recorded..
• Over 90% of external debt restructuring commitments had reportedly been addressed by 2025/26.
• GDP growth recovered toward the 5–6% range.
• Copper production targets were raised toward 3 million tonnes long term.
• Major mining expansions included Lumwana and Kansanshi.
• Free education and CDF expansion became major social protection tools.
The administration’s strategy was simple:
“Fix the macro-economy first, then growth and jobs will follow.”
Its major economic pillars included:
• Debt restructuring,
• Fiscal discipline,
• Mining-led growth,
• Reserve accumulation,
• Exchange rate stabilization,
• Free education,
• Social cash transfers,
• and public sector recruitment.
President Hakainde Hichilema did not pursue a conventional populist first term. Instead, he pursued a technocratic stabilization programme rooted in debt restructuring, fiscal consolidation, IMF credibility, and investor confidence restoration. This is risky, but that’s how it is done. The economy knows no quick fixes.
In many respects, his government’s economic “trick” was to prioritize macroeconomic repair first, while betting that visible growth and improved stability would arrive before the electorate votes in 2026.
The voter therefore has to ask themselves a question – Protect the gains or wear makeup?
