The Zambian government will take out an additional loan of over $620 million on the domestic market before the end of this year to cover a budget deficit that exceeds initial projections. The announcement was made on Thursday (26th) in Lusaka by Finance Minister Situmbeko Musokotwane, according to a report by Bloomberg.
According to the minister, the move is aimed at addressing additional financing needs within the current budget. “Zambia will take out an additional loan of more than $620 million from the domestic market to cover a deficit greater than what was forecast for the year,” he stated.
In addition to domestic borrowing, the government plans to boost tax revenue collection in 2025. Musokotwane said the country expects over $208.3 million in additional revenue from taxes.
Most of this revenue is expected to come from “unspecified new revenue measures,” the minister noted, though he did not provide details on the type of measures or a timeline for their implementation.
Zambia — a copper-rich country in Southern Africa — is facing fiscal challenges that demand greater revenue generation and tighter public spending. The increase in borrowing and tax revenues reflects the government’s efforts to address these issues. The minister’s remarks, delivered in Parliament, underscore the government’s commitment to realigning the budget to meet current fiscal demands.
Zambia hopes these steps will help stabilize public finances and reduce the fiscal deficit.
Source: DE
