The Zambian cabinet has endorsed a bold three-year economic blueprint aimed at achieving annual growth of at least six percent, curbing inflation and reforming the country’s tax regime to boost domestic revenue and fiscal sustainability.
The 2026–2028 macroeconomic plan sets out targets to reduce inflation to single digits by 2028, raise domestic revenues above 22 percent of GDP annually and cap net domestic borrowing at 1.7 percent.
The plan also aims to maintain foreign exchange reserves at a minimum of three months of import cover.
Key fiscal reforms include a comprehensive review of tax incentives and exemptions, with the goal of developing a streamlined incentive framework that supports both economic expansion and a broader tax base.
The cabinet also approved fast-tracked reforms to Zambia’s property taxation system, including updates to cadastral records, improved valuation methods and fairer assessments to reduce tax avoidance and enhance collection efficiency.
The reforms would be accompanied by wide-ranging stakeholder consultations, including community engagement, to build public trust and ensure smooth implementation.
JN/APA