Zambia Marks Legislative Centenary Amid Drought Crisis and Economic Challenges

In a pivotal address to Parliament, President Hakainde Hichilema officially opened the fourth session of the Thirteenth National Assembly, marking the 100th anniversary of the nation’s legislative body. During his speech, the President highlighted the ongoing El Niño-induced drought, its severe impact on the country, and the government’s response to the crisis.

President Hichilema celebrated the centenary anniversary of Zambia’s legislative body, emphasizing its pivotal role in advancing democracy and national development. “We extend our congratulations to the House on this significant milestone and recognize the National Assembly’s invaluable contributions to our nation’s progress,” he stated.

Drought Impact and National Response

The President addressed the pressing challenges posed by the ongoing drought, which has devastated agriculture, energy, and water security across Zambia and the Southern African sub-region. The drought has led to widespread food shortages and power outages, severely impacting livelihoods.

“The drought has deeply impacted our nation’s ability to produce food and generate power, leading to shortages that affect millions,” President Hichilema said. He outlined a government response plan, allocating K41.9 billion to critical areas, including immediate relief efforts, debt servicing, and fuel arrears.

Despite these challenges, Zambia has maintained economic resilience, with a three-year average GDP growth rate of 5.3%. However, the forecast for 2024 has been revised down to 2.3% due to the drought’s impact.

Economic Reforms and Agricultural Sector

Addressing the broader economic challenges faced by Zambia, President Hichilema outlined the government’s macroeconomic reforms aimed at stabilizing the economy amidst global inflation, high interest rates, and currency depreciation. The reforms include resuming external debt servicing, which is crucial for improving Zambia’s international financial position and restoring investor confidence. The President also highlighted the government’s efforts to support the agricultural sector, which has faced significant setbacks due to the drought.

The agricultural sector’s performance was notably impacted, with maize cultivation reaching 2.2 million hectares, but only 1.5 million tonnes harvested. To address the maize deficit, the government has initiated maize imports and secured contracts with farmers for early maize production, expected to start by April 2025. The President announced a substantial increase in agricultural financing, with K1.2 billion allocated to support irrigation and mechanization, aiming to boost productivity and resilience in the sector.

Mining Sector Investments and New Initiatives

In his speech, President Hichilema also focused on the mining sector, which plays a pivotal role in Zambia’s economy. He highlighted significant investments in major mining operations, including:

Mopani Copper Mines: An investment of US$1.1 billion.
Konkola Copper Mines: An investment of US$1.2 billion.
Luanshya Copper Mines: An investment of US$500 million.
Lubambe Copper Mines: An investment of US$300 million.
Additionally, President Hichilema announced new mining projects that are set to further enhance the sector:

Kitumba Mining Project: An investment of US$600 million.
Mingomba Mine Project: An investment of US$2 billion.
To further stimulate the mining sector, the President revealed plans for a high-resolution aerial geophysical survey to explore Zambia’s mineral and groundwater resources. This initiative aims to uncover the market value of these resources, reduce exploration costs, and attract additional investment. “Our goal is to uncover the true value of our resources while reducing exploration costs and attracting further investment,” he explained.

President Hichilema also addressed the issue of illegal mining, which has been a growing concern. He pledged to combat illegal mining by issuing mining licenses to Zambians and providing credit for safety compliance. This move is expected to regulate the sector and promote responsible mining practices.

Tourism Sector Growth and Government Initiatives

Tourism has emerged as a crucial economic driver for Zambia, and President Hichilema underscored its growing importance in his address. He noted a significant increase in international tourist arrivals during the first half of 2024 compared to the same period in 2023. The government is actively working to enhance local tourism by collaborating with tourism establishments to create attractive packages and expanding promotional activities. This includes marketing traditional ceremonies and developing new tourism products in partnership with the private sector.

The President emphasized the government’s commitment to positioning Zambia as a premier tourist destination. “Tourism is a vital part of our economic recovery and growth strategy,” he said, highlighting efforts to develop tourism infrastructure and collaborate with regional partners to boost Zambia’s visibility on the international stage.

Energy Sector Challenges and Solutions

The energy sector has been significantly impacted by the drought, particularly affecting hydroelectric power generation due to low water levels. To address this challenge, President Hichilema outlined several initiatives aimed at diversifying Zambia’s energy sources and ensuring a stable supply of electricity. Key projects include:

300-Megawatt Thermal Power Plant: Under construction in Maamba, with operations expected to commence by mid-2026.
Solar Electricity Projects: Development of solar energy projects to supplement the national grid.
In addition to these projects, the President introduced the Electricity (Net Metering) Regulations of 2024. This new regulation encourages citizens to produce and share their own electricity with the national grid, promoting energy independence and sustainability. “Diversifying our energy sources is crucial for ensuring stability and sustainability,” he emphasized.

Infrastructure, Manufacturing, and Economic Empowerment

President Hichilema’s address also covered strategic efforts to enhance infrastructure, manufacturing, and economic empowerment. He highlighted several key infrastructure projects, including:

Chingola to Kasumbalesa Road: A 35-kilometer project aimed at improving transport links.
Lusaka to Ndola Dual Carriageway: A 327-kilometer project expected to be completed within 36 months, with an investment of US$650 million.
Transport Corridors for Economic Resilience Project: An investment of US$270 million to rehabilitate key roads and upgrade border posts.
Feeder Roads Maintenance: Over 2,980 kilometers of feeder roads maintained to improve accessibility.
In the manufacturing sector, the President discussed the expansion of incentives for existing projects and the development of Special Economic Zones, such as Lusaka South and Jiangxi in Chibombo, to attract investments and promote value addition. He also emphasized the promotion of locally produced goods through the “Proudly Zambian” campaign and increased economic diplomacy to enhance Zambia’s export markets.

Support for Micro, Small, and Medium Enterprises (MSMEs) has been bolstered with revised policies and financial backing, including K189.2 million in loans from the Citizens Economic Empowerment Commission (CEEC) and expanded financing under the Zambia Credit Guarantee Scheme.

Strengthening Infrastructure and Education

President Hichilema’s address also highlighted key initiatives in aviation, ICT, and education:

Aviation Infrastructure Development: Construction of a second runway at Kenneth Kaunda International Airport to improve efficiency and safety. The upgrade of Kasama Airport is complete, with ongoing work at Mansa, Nakonde, and Chinsali airports to enhance connectivity.

ICT Enhancements: Investment in ICT infrastructure with 202 new communication towers being constructed nationwide, complemented by 212 additional towers from the private sector. The “Smart Village” concept, exemplified by the Muchila Smart Village in Namwala District, integrates solar-powered electricity and ICT services to uplift rural communities.

Education Sector Expansion: Significant efforts to expand and improve the education system, including the construction of 1,551 new classroom blocks, the rehabilitation of 332 existing ones, and the extension of the school feeding program to cover all 116 districts by 2025. The government has also increased teacher recruitment and emphasized vocational training, with the completion of Lundazi and Mporokoso Trade Training Institutes and the rehabilitation of 16 out of 23 youth resource centers.
Healthcare, Nutrition, and Environmental Resilience

President Hichilema highlighted the importance of healthcare and nutrition in fostering economic growth. The government has focused on enhancing healthcare access through the completion of seven Level 1 hospitals and 111 mini-hospitals, with plans to build an additional 120 mini-hospitals by 2027. Over 3,500 health workers were recruited in 2023, with an additional 4,000 planned for this year. The government has also improved public health safety with local cholera vaccine manufacturing and increased stock availability of essential medicines.

To address mental health and nutrition challenges, the government is distributing high-energy supplements to pregnant and breastfeeding mothers and children. The National Water Policy is being revised to improve water resource management and accelerate water supply infrastructure projects. Social protection programs, including the Social Cash Transfer and Food Security Pack programs, have been expanded to support vulnerable populations and mitigate the effects of the drought.

Advancing Environmental Sustainability and Community Resilience

Environmental sustainability and community resilience were key themes in President Hichilema’s address. He emphasized the government’s commitment to forest conservation and sustainable land management practices through initiatives such as the Zambia Integrated Forest Landscape Project and the Transforming Livelihoods for Resilience and Development Project. The establishment of Community Forest Management Groups and the management of 7.6 million hectares of forests under sustainable forestry management were highlighted as critical efforts to protect the environment.

The President also called for collaboration to combat harmful practices like bush burning and to promote environmental conservation.

Celebrating Sports Achievements and Embracing Future Challenges

In closing, President Hichilema celebrated Zambia’s sports achievements, particularly noting successes from the Paris Olympic Games 2024. He commended the women’s football team and highlighted Muzala Samukonga’s bronze medal. The President acknowledged the unifying power of sports and its role in providing employment opportunities and showcasing national determination and perseverance