Zambia’s economy has shown stability in various […]

Zambia’s economy has shown stability in various economic indicators, with inflation remaining within the single digit, the exchange rate currently standing at K18/ US dollar and international reverse reported to be above $6 billion. However, major questions around these economic gains are whether the gains are translating down to ordinary Zambians or not?

 Economic Expert Trevor Hambayi has noted that the macroeconomic indicators are reflecting the stability that the country needs to be able to drive economic growth. Speaking in an interview with Zambian Business Times-ZBT Hambayi noted the stability of the country’s economy especially around inflation given business and advantage to plan their operations.

“Basically around the inflation rate when it comes to the single digit, is that you are able to predict what the cost of doing business is going to be during the year because businesses are able to understand exactly where the internet rate stands, which is a similar case with the exchange rate, He added that the country has seen a certain degree of growth in the economy which can be measured using the country’s GDP which currently stands around 7.7% in the first quarter of 2026.

 Hambayi noted that for the country to be able to reduce the cost of living the growth of the country’s Gross Domestic Product needs to be growing faster than the population. “What we do have currently is 6% inflation, the rate at which the prices of goods are still going up by 6% but it is lower than the way it was previously when the price of goods was going up at a rate of 23% because of inflation and at the moment we don’t have an immediate benefit to an ordinary person in terms of reduction in the cost of living because the cost is still going up but only by 6%, “said Hambayi.

 He added that the only factor that can be able to contribute towards reduced cost of living is the positives around GDP growth which should consistently be above 6%. “Until we manage to have a GDP growth which is above 6 % the country won’t see direct benefits reflecting to ordinary Zambian’s, because for the benefits to be seen the GDP has to remain constantly above 6% for the period of at least 2-3 years of growth to be able to see the much need positive impact around income, “ said Hambayi.

Article by Justine Phiri