In 2024, Zambia faced one of its most challenging years, marked by a severe drought that disrupted key sectors, particularly agriculture and energy. Inflation and the cost of living surged, deepening food insecurity and straining households and industries. Yet, in the face of adversity, Zambia displayed remarkable resilience, supported by disciplined fiscal management, strategic investments, and the resourcefulness of its people. Despite significant challenges, the nation took bold steps to stabilise its economy and lay the foundation for a sustainable and inclusive recovery.
Weathering the Crisis
The challenges of 2024 were immense. Agriculture, the backbone of Zambia’s rural economy, was severely impacted, with nearly half of the country’s cultivated maize area—an estimated 982,765 hectares—destroyed by drought. Food prices soared, with the cost of a 25kg bag of “Breakfast” maize meal rising by 19.5% and a 20-litre tin of maize grain increasing by 27%, pushing millions further into food insecurity. Livestock losses compounded the crisis, further weakening rural livelihoods.
The energy sector also faced significant challenges. Water levels at the Kariba Dam, Zambia’s largest hydropower source, dropped to historic lows, reducing electricity generation to less than 10% of capacity. Widespread blackouts disrupted industries, manufacturing, and daily life, while inflation accelerated as food prices climbed and the kwacha depreciated, further straining household budgets.
Faced with these challenges, the government acted swiftly. The drought was declared a national disaster, and resources were mobilised to mitigate its impact. By mid-year, the United Nations had launched a $228.3 million Drought Response Appeal, while the International Monetary Fund (IMF) approved a $569.6 million disbursement as part of a broader $1.7 billion support package. Government-led initiatives, such as Cash for Work schemes, irrigation projects, and renewable energy investments, provided immediate relief while laying the foundation for long-term resilience.
Despite these hardships, Zambia’s swift and coordinated response demonstrated its ability to adapt and endure in the face of significant adversity.
Resilience in the Face of Adversity
As the year progressed, growth forecasts were revised downward—from an initial 4.8% to 2.3%, and eventually to 1.2%, according to the IMF and the Ministry of Finance and National Planning. Yet, Zambia defied expectations, with the economy growing by 2.2% during the first three quarters of 2024, according to ZamStats figures released in December.
Figure 1: Sectoral contributions to Zambia’s GDP growth, Q1–Q3 2024.

One of the key pillars of Zambia’s recovery was its fiscal achievement. The country recorded a primary budget surplus, where revenues exceeded non-debt-related expenditures. This milestone reflected improved tax collection and disciplined public spending. The surplus allowed the government to prioritise critical investments in infrastructure, social services, and drought relief without resorting to unsustainable borrowing. It also bolstered investor confidence, reinforcing Zambia’s commitment to long-term economic stability.
Public investments, supported by public-private partnerships (PPPs), were instrumental in stabilising the economy. Drought relief efforts—including food aid, clean water provision, and subsidies for agricultural inputs through the enhanced Farmer Input Support Programme—helped mitigate the immediate impact on vulnerable populations. Infrastructure projects, such as the construction of flood-resistant roads, modern storage facilities, and bridges, were advanced through PPPs. Notable collaborations included the commencement of the Lusaka-Ndola dual carriageway project, which is expected to improve transportation links and boost economic connectivity. PPPs also supported renewable energy initiatives, such as solar power projects aimed at addressing persistent electricity shortages, and the construction of new healthcare facilities to expand essential services in underserved regions. These initiatives not only created jobs and strengthened resilience but also showcased the effectiveness of coordinated efforts between the public and private sectors.
Sectors Leading Recovery
Tourism, ICT, construction, and financial services emerged as Zambia’s key growth drivers in 2024, providing a foundation for recovery despite the drought’s impact.
Tourism was a standout sector, with international arrivals increasing by 21% in the first half of the year to 732,732 visitors. This growth was fuelled by aggressive marketing campaigns, expanded flight routes—including new connections to Kasama—and competitive pricing. Local tourism helped sustain the hospitality sector amid ongoing energy shortages, while tourism revenues surged by 46.9%, driven by higher collections from levies and hunting fees. Attractions like Nyambwezu and Chishimba Falls experienced increased footfall, offsetting declines at major sites like Victoria Falls, where reduced water levels impacted visitor numbers.
The ICT sector contributed 1.1 percentage points to the 2.2% GDP growth recorded in the first three quarters of 2024. Investments in digital infrastructure, including the rollout of Starlink to expand high-speed internet in rural areas, played a pivotal role. The National Financial Switch further enhanced electronic payments, increasing financial inclusion and positioning Zambia as a regional leader in digital transformation.
The construction sector added 0.7 percentage points to GDP growth, driven by investments in residential housing, commercial real estate, and public infrastructure such as roads and schools. These projects generated demand for materials, created jobs, and sustained economic momentum during a challenging year.
The financial services sector also showed resilience. Digital banking solutions expanded access to financial services, while the drought prompted a rise in demand for insurance products, particularly agricultural and property coverage. This underscored the sector’s ability to support households and enterprises during periods of economic volatility.
Building for a Stronger Future
Looking ahead, Zambia’s recovery plan is centred on resilience, diversification, and inclusivity, with growth projected to rebound to 6.6% by 2025. Reforms in agriculture aim to empower farmers through drought-resistant seeds, advanced irrigation systems, and climate-smart practices, reducing dependence on erratic rainfall. Energy diversification is accelerating, with significant investments in solar and wind power addressing immediate shortages and building a stable, sustainable energy supply.
The mining sector remains integral to Zambia’s economic strategy, leveraging its vast reserves of copper and other critical minerals essential for the global transition to green energy. By prioritising sustainability and local value addition, mining revenues are being channelled directly into broader economic development.
Economic diversification is advancing, with initiatives to expand agribusiness, manufacturing, and tourism. These efforts are complemented by investments in human capital, equipping Zambia’s workforce with skills in ICT, renewable energy, and technical fields to seize emerging opportunities.
Zambia’s journey through 2024 showcased its capacity to rise above adversity. The combination of bold reforms, strategic investments, and disciplined fiscal management not only helped the country weather the crisis but also positioned it for a stronger, more inclusive future. By integrating fiscal responsibility with sectoral resilience, Zambia demonstrated how targeted investments and sound policies can transform challenges into opportunities. This alignment of short-term relief with long-term sustainability offers a blueprint for lasting change, paving the way for economic stability and growth in the years ahead.