Zambian President Hakainde Hichilema has reappointed Situmbeko Musokotwane as Minister of Finance and National Planning, signalling a commitment to continuity as the country navigates the final stages of its debt restructuring and negotiates a new programme with the International Monetary Fund.
Musokotwane took the oath of office on Monday during the swearing-in ceremony for members of Hichilema’s new cabinet, following the President’s re-election in August. The reappointment was confirmed in a statement from the Zambian Cabinet Office .
The retention of Musokotwane, who has served as Finance Minister since 2021, reflects the government’s desire to maintain stability in economic policy as Zambia seeks to conclude a successor arrangement with the IMF by the end of the year .
THE “DEBT SURGEON” WHO STEADIED A COLLAPSING ECONOMY
Musokotwane, a former deputy governor of the Bank of Zambia who has also worked at the IMF and World Bank, was first appointed to the finance portfolio in August 2021, just weeks after Hichilema’s first election victory. At that time, Zambia had become the first African nation to default on its sovereign debt during the COVID-19 pandemic.
Five years later, the same architect has been handed the keys to the Treasury to complete the transformation. Musokotwane can claim a significant achievement: the restructuring of approximately $13 billion in external debt, negotiated with official creditors under the G20 Common Framework .
The results are beginning to show. Zambia’s annual external debt-service payments are projected to fall to about $900 million from 2026, down significantly from the estimated $2.6 billion per year the country would have been required to pay without the restructuring .
Before the debt restructuring, nearly K70 out of every K100 collected in domestic revenue was required for external debt service. That figure has now fallen to approximately K15 out of every K100, allowing government to channel more resources towards education, health, agriculture, social protection and infrastructure .
ECONOMIC INDICATORS SHOW STRONG RECOVERY
The macroeconomic picture has improved markedly under Musokotwane’s stewardship. Inflation eased to 6.2 percent in August 2026 from 6.5 percent in July, placing price growth firmly within the Bank of Zambia’s 6-to-8 percent target range. This is a dramatic improvement from the 24.4 percent recorded in August 2021 .
International reserves have been rebuilt from about $3 billion in 2021 to $6.5 billion by June 2026, providing a buffer of approximately 4.4 months of prospective imports . The kwacha has strengthened by nearly 20 percent since January, and the fiscal deficit has declined from nine percent in 2021 to 3.8 percent in 2025 .
Copper production reached 890,346 metric tons in 2025, about 8 percent higher than the previous year, though still short of the government’s one-million-tonne target. Copper generates roughly 70 percent of Zambia’s export earnings and accounted for about 22 percent of net tax revenue in 2025 .
CHALLENGES REMAIN
Despite the progress, Musokotwane’s second term opens under considerable pressure. Four key challenges loom large:
New IMF Programme: Zambia is seeking to conclude a successor arrangement with the IMF before the end of the year. A previous $1.7 billion Extended Credit Facility programme expired in January 2026 and served as the backbone for the debt restructuring .
Fiscal Pressures: The IMF has twice revised its 2026 growth forecast downward to 4.3 percent, citing agricultural normalisation after the 2025 harvest, energy constraints, and the impact of Middle East conflict on fuel prices. Public debt, which exceeded 124 percent of GDP at the end of 2024, remains under close watch .
Energy Security: The 2024 drought crippled hydroelectric output, forcing power cuts of up to 21 hours per day and strangling industry. Mining already accounts for roughly half of Zambia’s total electricity consumption, and at least 2,000 megawatts of additional generation capacity would be needed to sustain the copper expansion target .
Cost of Living and Youth Employment: These social pressures crystallised during the August election campaign in a country whose population has grown sevenfold since independence in 1964 .
THE ROAD AHEAD
In a July interview with Reuters, Musokotwane summarised his approach: generating more tax revenue “not by imposing new taxes, but by improving the efficiency of collection,” reforming the grain market, and strengthening the role of the private sector in mining, energy and agriculture .
President Hichilema, addressing the newly appointed ministers at State House, tasked them with delivering the “Grow Zambia” agenda, which he said is intended to drive economic expansion, create jobs and unlock opportunities for citizens. He warned that corruption would not be condoned and urged ministers to serve with integrity .
The President also appointed Mulambo Haimbe as Minister of Foreign Affairs and International Cooperation, Dr. Gilbert Siame as Minister of Green Economy and Environment, and Professor Roma Chilengi as Minister of Health .