Friday, 26^th September, 2025

The House met at 1415 hours

[MADAM SPEAKER in the Chair]

NATIONAL ANTHEM

PRAYER

______

BUDGET ADDRESS

BUDGET 2026

The Minister of Finance and National Planning (Dr Musokotwane): Madam Speaker, on behalf of the United Party for National Development (UPND) Government, I have the honour to present the Estimates of Revenue and Expenditure for the period 1^st January, 2026 to 31^st December, 2026. This is pursuant to Article 202 of the Constitution of Zambia (Amendment) Act, 2016. 

Madam Speaker, this is the fifth time that the UPND Government is presenting the National Budget since 2021 when we came into office. The UPND Administration, under the able leadership of Mr Hakainde Hichilema, President of the Republic of Zambia, has continued to score remarkable achievements. Many of them are a result of the pronouncements made during Budget presentations, as I am doing today.

Madam Speaker, during the opening of the Fifth Session of the Thirteenth National Assembly, the President outlined, at great length, some of the achievements scored by the UPND Government. In summary, here are some of the achievements. Economic growth over the past four years averaged 5.2 per cent, in spite of calamities like the Coronavirus Disease 2019 (COVID-19) pandemic and the drought in 2024. Economic growth has created jobs and other benefits. We can compare that to the average growth of only 1.6 per cent for four years prior to 2021.

Madam Speaker, five years ago, Zambia became known for being the first country in the world, post-COVID-19, to default on its external debt because she had borrowed excessively.

Hon. PF Member: Question!

Dr Musokotwane: Today, Zambia is famous for being the first country to successfully restructure her debt under the G20 Common Framework for Debt Relief.

Hon. Government Members: Hear, hear!

 Dr Musokotwane: This has changed our status from being a crisis-prone country to a solution-oriented country. Clearly, we have changed the narrative on our country.

Madam Speaker, Zambia and other countries in the region experienced the worst drought in 2024, never seen in living memory. There was trepidation and fear in the land. In the end, because of the diligence of this Government, people had food and no one died of hunger.

Hon. Government Members: Hear, hear!

Dr Musokotwane: This is because we introduced the Cash-for-Work Programme, enhanced Social Cash Transfer (SCT) Programme and we delivered food for sale near communities.

Madam Speaker, four years ago, children from poor families, along with their relatives, were condemned to poverty without any hope of change in the future. This was because they had no access to education, as they could not afford to pay school fees. With the Free Education Policy introduced by the UPND Government, an initiative that had been considered impossible by others, the sky is now the limit for a poor, but able child.

Madam Speaker, we cannot forget to include the positive effects of the enhanced Constituency Development Fund (CDF). Children who were learning from makeshift structures and sitting on logs of trees previously are now comfortable, sitting in modern classrooms on desks manufactured by local people, thus creating jobs in those areas.

Hon. Government Members: Hear, hear!

Dr Musokotwane: So much can be said about the transformative impact of the CDF. Therefore, let me just say that the CDF is, indeed, a game changer.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, those are just a few examples of the good things that have been happening since 2021. However, it is said that “development has no finish line”. In other words, there can never be a time when a country lays back and stops striving to move forward because it has developed enough. We must always continue to strive forward.

Madam Speaker, certainly, in the case of Zambia, as we celebrate our achievements, we cannot ignore the pending development issues, especially those that lean heavily on the youth and women. Unemployment remains a problem for many of our young people. Poverty is also unacceptably high. Not to be forgotten is the inadequate infrastructure, especially in electricity and roads. Finally, the need to increase productivity cannot be overemphasised. Poverty can only be eliminated when the population increases its ability to produce more. This, therefore, means that much more still needs to be done to push our country to the next level of development. The time for doing so is now, as the Eighth National Development Plan (8NDP) ends and we begin to develop the Ninth National Development Plan (9NDP). In this regard, the theme that the President chose when opening the Fifth Session of the Thirteenth National Assembly of Zambia was appropriate. Thus, the 2026 Budget has adopted the same theme of “Consolidating Economic and Social Gains Towards a Prosperous, Resilient and Equitable Zambia.’’ The Budget provides the fiscal context for this theme. The measures already taken since we came into office and those that will follow are designed to take our economy to a level not experienced in our country before.

Madam Speaker, my address this afternoon is in four parts. In part one, I highlight the macroeconomic developments in 2025. In part two, I present the macroeconomic goals and strategies for 2026. In part three, I provide estimates of revenue and expenditure as well as the borrowing needs. In part four, I will conclude.

MACROECONOMIC DEVELOPMENTS IN 2025

Global Economic Developments

Madam Speaker, trade tensions and heightened geopolitical risks are expected to slow down global growth to 3 per cent this year from 3.2 per cent in 2024. In 2026, a modest pick up to 3.1 per cent is projected.

Madam Speaker, during the first nine months of 2025, copper prices increased to an average of US$9,545 per metric tonne compared to US$8,589 per metric tonne during the corresponding period in 2024. Over the same period, crude oil prices reduced to US$74.8 per barrel from US$82.8 per barrel.

Here in Zambia, Madam Speaker, in 2024, the economy was resilient as it grew by just under 4 per cent, despite the severe drought experienced in the 2023/2024 Rainy Season. Growth is projected to be higher in 2025, at 5.8 per cent, owing to increased mining activity, recovery in agriculture and strong performance of the information and communication technology (ICT) sector.

Madam Speaker, since assuming Government in 2021, we have made many policy changes to improve our economy. A good example of successful reforms is in the mining sector, which is already helping to push overall economic growth. However, most of the impact of the reforms will be felt in 2026 and beyond, when production of copper will go beyond 1 million tonnes per year.

Hon. Government Members: Hear, hear!

Dr Musokotwane:

Inflation

Madam Speaker, a few months ago, rising prices or inflation was a major concern to many in the country. It peaked at 16.7 per cent in December last year. Since then, it has been trending downwards towards the target band of 6 to 8 per cent. Inflation has declined to 12.3 per cent this month. This is largely a reflection of lower food prices due to a better harvest, appreciation of the Kwacha against major currencies, reduced fuel prices and the impact of a tight monetary policy stance. As at yesterday, the Kwacha had appreciated by 14.7 per cent against the United States (US) Dollar due to improved supply of foreign exchange.

Budget Performance

Madam Speaker, this Government has demonstrated incredible discipline in managing public finances, in spite of challenges like COVID-19 and the drought. This is why there has been a significant reduction in the fiscal deficit over the last four years. In 2024, the deficit reduced to 3.5 per cent of the gross domestic product (GDP) from 9 per cent in 2011. The reducing deficits have the effect of sharply reducing the growth of public debt. Fiscal discipline has continued. The budget performance, as at the end of August this year, was broadly on track. Total revenue and grants stood at K119 billion against the target of K126 billion. Expenditure was K138 billion against the target of K152 billion. The deficit for this year is projected to be within the target of 4.6 per cent, which was revised from 3.1 per cent in July. The adjustment was mainly to accommodate the clearance of fuel arrears and the resumption of debt service payments after debt restructuring.

Madam Speaker, regarding the debt, as at the end of June, 2025, the Central Government’s external debt stock, excluding publicly guaranteed external debt, increased by 2.3 per cent to US$15.78 billion from US$15.43 billion as at the end of December, 2024. This was primarily driven by disbursements by multilateral and plurilateral creditors. Publicly guaranteed external debt was, however, unchanged at US$1.36 billion.

Madam, as at the end of August, 2025, the overall stock of treasury bills and government bonds increased to K242 billion from K229 billion as at the end of December, 2024. The outstanding payments to suppliers of goods and services increased by a modest K3.3 billion to K84.1 billion.

Financial Sector Performance

Madam Speaker, the cost of borrowing remains relatively high, which is not good for anyone of us. It is at 29 per cent. That notwithstanding, credit to households and businesses grew by 20.7 per cent during the first half of the year.

Madam Speaker, the overall financial performance and the condition of the banking sector is okay; satisfactory. The banking sector remains profitable, with a relatively low non-performing loan ratio of 3.8 per cent, against the benchmark of 10 per cent, meaning our banking system is solid. This also remains the case with the non-banking financial sector.

Madam Speaker, to safeguard financial stability against the adverse impact of the drought and support economic growth, the Bank of Zambia (BoZ) launched a K5 billion Stability and Resilience Facility (SRF) in December last year. Demand for the facility has been overwhelming, with approximately K4.7 billion approved, most of it to the agricultural, manufacturing and energy sectors.

Hon. Government Members: Hear, hear!

Dr Musokotwane: 

External Sector Performance

Madam Speaker, preliminary data indicates that export earnings during the first eight months of this year were US$8.18 billion, compared to US$7.26 billion during the same period last year. In other words, our export base is rising. The better performance was mainly due to rising copper production and favourable prices. During the same period, imports amounted to US$8.21 billion, representing an increase of 18.8 per cent, with more machinery and other equipment imported into our country, which is something positive for the near future.  

Madam Speaker, over the last four years, non-traditional exports (NTEs) grew by 37.3 per cent and were US$3.54 billion in 2024. This was driven mostly by agriculture and manufacturing. Over the same period, foreign direct investment (FDI) increased by 62.6 per cent and exceeded US$1 billion of investment coming into our country alone. Most of the FDI went into the mining sector.

Madam Speaker, gross international reserves rose; they are just under US$5 billion now.

Hon. Government Members: Hear, hear!

Dr Musokotwane: This was at the end of July, 2025. They rose from US$4.3 billion at the end of December, 2024. In terms of import cover, that is equivalent to 4.8 months.

Hon. Government Members: Hear, hear!

Dr Musokotwane:

MACROECONOMIC OBJECTIVES

Madam Speaker, to consolidate economic and social gains towards a prosperous, resilient and equitable Zambia, the Government has set the following macroeconomic objectives for 2026:

1. attain real GDP growth rate of 6.4 per cent;
2. reduce inflation to the 6 to 8 per cent target band;
3. maintain gross international reserves above four months of import cover;
4. increase domestic revenue to at least 22.3 per cent of GDP;
5. reduce the fiscal deficit to 2.1 per cent of GDP; and
6. limit net domestic borrowing to 2.3 per cent of GDP.

 Policies and Strategies for 2026

Madam Speaker, I will now run through the policies and strategies for 2026. As I do so, I will follow the pillars enshrined in the 8NDP. Those pillars are what we do about economic transformation, job creation and improving human capital. In other words, we are addressing education, health, environmental protection and good governance. That is the format of how I am going to talk about the policies for 2026.

Economic Transformation and Job Creation

Madam Speaker, it is vital that our country experiences strong economic growth year after year. The jobs that we desperately need and the increased revenues we seek to spend on social services and public infrastructure become available only with strong growth. Building on the strong growth of the past four years, we must ensure, as a country, that it is not only sustained, but accelerated.

Madam Speaker, upon assuming office in 2021, we pledged to grow the economy through industrialisation and economic diversification. Over the past four years, the country has attracted significant investments in the mining, manufacturing, tourism, energy and other sectors. Our efforts in revamping and growing the economy are evident.

Madam Speaker, let me now, at this point, go sector by sector regarding what policies will be implemented, so that growth takes place in those sectors to drive the growth of the economy.

Hon. Government Members: Hear, hear!

Dr Musokotwane:

Mining

Madam Speaker, the starting point is mining. The performance of the mining sector has definitely improved, without any doubt.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Copper production increased to 821,000 metric tonnes in 2024 from 737,000 metric tonnes in 2023. In 2025, the target of 1 million metric tonnes of copper production is already in sight, as we continue with the journey towards the 3 million metric tonnes target per annum by 2031. This is a positive performance. In other words, we are making sure that the mines produce more, not closing mines or reducing production. This is what is going to contribute to positive economic growth.

Hon. Government Members: Hear, hear!

Dr Musokotwane: The positive performance, Madam Speaker, is at the back of a stable mining tax and regulatory regime and settling of disputes out of court.

Hon. Government Members: Hear, hear!

Hon. PF Members: Question!

Dr Musokotwane: That has seen the re-opening of some old mines, new investments and revitalisation of activities at existing mines.

Madam Speaker, as the President and the hon. Minister of Mines and Minerals Development said, notable milestones have already been attained towards this goal. Here are a few reminders of what the President and the hon. Minister said. Firstly, we commissioned the First Quantum Minerals (FQM) S3 Expansion Project to enhance annual production to 270,000 metric tonnes. If the UPND Government had not come in, that mine would have closed.

 Hon. Government Members: Hear, hear!

Dr Musokotwane: Now, it is expanding.

Secondly, we are up-scaling production at existing mines, such as Barrick Mining Corporation’s Lumwana Mine Super Pit. Again, if the UPND Government had not been there, that project would not have come on board. 

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, we all know that Konkola Copper Mines (KCM) was closed. Now, it is open and expanding. Lubambe Copper Mine was almost closing. Now, it is expanding. Mopani Copper Mines (MCM) was closed. Now, it is expanding.

Hon. Government Members: Hear, hear!

Hon. PF Members: Question!

Dr Musokotwane: With all those mines operational, combined production will reach just under 600,000 metric tonnes of copper per annum.

Madam Speaker, a new mine is expected to open; that is the Mwekera Copper Mine. A new mine is expected to be opened by Mingomba Mining Limited. A new mine is expected in Mumbwa, of all places, called Kitumba Mine. The combined production capacity of 700,000 metric tonnes is possible from all these mines. With these developments, the Zambian economy, which is already growing, will reach very impressive levels that have never been seen in the history of this country, within the next two years.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, artisanal and small-scale miners have also performed very well during our tenure, with copper production projected at over 80,000 metric tonnes this year, a significant rise from only 13,000 metric tonnes in 2020 from that sector. Both artisanal and small-scale miners are contributing to the production of gemstones, gold and manganese.

Madam Speaker, to formalise artisanal and small-scale mining, 1,498 licences have been issued since 2023. Increased incidences of accidents and deaths due to unsafe mining practices are issues that the hon. Minister of Mines and Minerals Development is addressing. To further support formalisation and improve trading in minerals, the Government is constructing two marketing centres in Mumbwa and Rufunsa Districts, with completion expected at the end of this year.

Hon. Government Members: Hear, hear!

Dr Musokotwane: This initiative will be rolled out to other districts where mining and trading activities are already taking place.

Madam Speaker, –

Interruptions

Madam Speaker: Order!

Hon. Members, please, can we listen to the Budget Address. There is a lot of talking on both sides of the House.

Interruptions

Madam Speaker: Order!

Dr Musokotwane: Madam Speaker, progress to map minerals using a countrywide high resolution aerial geophysical survey is at 34 per cent. It is the first time in the history of this country that this exercise is being done.

Hon. UPND Members: Bola!

Dr Musokotwane: The exercise was launched in July, 2024. So far, the Western Province and parts of the North-Western Province have been covered. In 2026, this work is going to continue, and there will be budgetary provisions to support it.  

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to regulate and monitor the development and management of mineral resources in the country, the Government enacted the Minerals Regulation Commission Act, 2024. The commission will be operational by the end of this year, and it will work hand-in-hand with the Zambia Revenue Authority (ZRA) to adhere to the provided tax laws.

Madam Speaker, the Budget that I shall announce this afternoon contains some investments in the sector to consolidate the economic and social gains we have made so far.

Agriculture, Livestock and Fisheries Sector

Madam Speaker, upon assuming office, we embarked on transforming the agricultural sector by addressing low production and productivity, limited market access, underdeveloped value chains, dependence on rain-fed agriculture and adverse effects of climate change. A maize bumper harvest of 3.7 million metric tonnes was recorded during the 2024/2025 Farming Season. This was due to good rainfall, but also importantly, the timely provision of inputs to our farmers under the enhanced Farmer Input Support Programme (FISP). As I speak, inputs are being distributed and people are already redeeming their vouchers.

Hon. Government Members: Hear, hear!

Dr Musokotwane: In addition, the Sustainable Agriculture Financing Facility (SAFF) was introduced in 2023 to enhance access to agriculture finance and almost 9,000 farmers accessed loans valued at almost K800 million.

Madam Speaker, our objective is to increase maize production to 10 million metric tonnes, wheat production to 1 million metric tonnes and soya beans to 1 million metric tonnes per annum by 2031. These output targets are well in excess of what Zambia can consume. It follows that the surplus must be exported. As a people, we must, therefore, recognise that improving our incomes by producing large surpluses is tied to exporting agricultural surpluses, including maize.

Madam Speaker, to make FISP more cost-effective and efficient, the Government has rolled out the electronic Voucher (e-Voucher) system to seventy-four districts. During the 2025/2026 Farming Season, the e-Voucher system will be rolled out to the remaining forty-two districts.

Madam Speaker, to enhance climate resilience, we will continue to improve and modernise agricultural infrastructure. Since 2022, the Government has constructed six dams, namely, Kapekesa and Kawawa in the Eastern Province, Muyembe in Luapula Province, Shikezhi in the North-Western Province and Chuundwe and Jongolo in the Southern Province.

Hon. Members: Hear, hear!

Dr Musokotwane: These dams are benefiting over 126,000 people and 221,000 livestock. In addition, the Government has rehabilitated ten dams and maintained 791 nationwide, creating over 8,000 jobs. In 2026, we will construct nine dams, complete seven and maintain 300.

Madam Speaker, another measure that has been taken to improve climate resilience is the development of drought-resistant crop varieties for maize, millet, sorghum, cowpea and cassava. In addition, the Government inaugurated the Bayer Itaba Seed Plant in Kabwe, one of the largest seed production plants in Central and Southern Africa. This has contributed to Zambia being one of the largest exporters of seed on the African continent.

Hon. Government Members: Hear, hear!  

Dr Musokotwane: Madam Speaker, to address the unpredictability in agricultural markets and commodity prices, the Government will introduce the Agricultural Marketing Bill and amend the Food Reserve Act, 2020 and the Agricultural Credits Act, 2010. The desired outcome is increased production and productivity and food and nutrition security.

Madam Speaker, in the livestock sub-sector, the Government is aggressively pushing for entry into export markets. To achieve this, five disease-free compartments at Chikankata, Chipata, Chisamba, Mumbwa and Namwala have been established. The compartments are expected to export, at least, 20,000 metric tonnes of beef per annum. In 2026, the Government will establish additional disease-free compartments in Choma, Mazabuka, Mkushi and Sinda. The Government will also support the livestock sector through enhanced disease control and surveillance.

Madam Speaker, to improve disease control and surveillance, the Government has heightened vaccination against diseases of national economic importance. By the end of this year, vaccination coverage will reach 75 per cent of the targeted livestock. The Government will also operationalise regional laboratories in Isoka, Mongu, Ndola and Solwezi Districts to complement the already functional laboratories.

Madam Speaker, the fisheries and aquaculture sector has continued to register steady growth. Domestic fish production increased by 24 per cent in 2024 from 159,000 metric tonnes. This was mainly on account of increased fingerlings production, which rose by 90 per cent to 475 million in 2024. Consequently, the national fish deficit has reduced significantly, positioning the country to achieve the projected fish consumption of 16 kg per person per annum by 2026, from the current 13 kg. This positive performance is attributed to the interventions that the Government implemented through the Zambia Aquaculture Enterprise Development Project (ZAEDP). In 2026, the Government will continue implementing the Genetic Improvement Programme to enhance the performance of local culturable fish species. The Government will also operationalise aquaculture parks in Kabompo, Mungwi, Mushindamo and Samfya.

Madam Speaker, to improve the provision of agricultural extension services, the Government has, since 2021, recruited more than 800 extension officers. Over 600 agricultural camp extension officers have also been trained in climate-smart agriculture.

Energy

Madam Speaker, Zambia, today, faces a serious shortage of energy, almost all caused by the 2024 drought. I repeat: Madam Speaker, Zambia, today, faces a serious energy shortage, almost all caused by the 2024 drought.

Mr Kampyongo: Question!

Dr Musokotwane: The Government sympathises with citizens for the difficulties that this has brought on them. However, the shortage also reflects the underinvestment in the sector since Independence.

Madam Speaker, the current installed capacity for generating electricity could have been adequate with sufficient water in the dams, but, clearly, this is not the case because water is not enough. The rising activities in the mining sector are increasing demand for electricity, which means that even if we have sufficient water, the installed capacity will not be enough.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, over the past four years, the Government has been undertaking reforms in the energy sector. These include diversifying the energy mix, improving the regulatory framework and introducing flexibility in the tariff structures. In particular, the Government has created an environment that enables the private sector to be an active player in the energy sector, from generating to exporting and importing electricity.

Madam Speaker, today, Zambia is considered by its neighbours as one of the leading reformers in the energy sector.

Hon. Government Members: Hear, hear!

Hon. PF Members: Kanona!

Dr Musokotwane: Madam Speaker, the coming on board of the private sector is positive – I want to repeat this because it is very important, and I heard someone say “Kanona”. So, I must explain. The coming on board of the private sector is positive for our local market because it complements the efforts of existing players like ZESCO Limited.

Interruptions

Dr Musokotwane: Madam Speaker, because of the history of ZESCO Limited not being made to pay its bills in the past, it imported electricity from Mozambique and never paid for it.

Hon. Government Members: Hear, hear!

Hon. PF Members: Question!

Dr Musokotwane: So, when ZESCO Limited asks Mozambique or any other place to buy electricity, those selling tell the institution that it does not pay its bills and so will not be given electricity. That was because of the Patriotic Front (PF).

Hon. PF Member: Kanona!

Dr Musokotwane: Madam Speaker, the importance of the private sector is this: Sometimes, there is electricity in the region, but we are not able to acquire it because ZESCO Limited must put money upfront, but it does not have that money. So, private companies with cash buy the electricity and make it available to our country.

Hon. Government Members: Hear, hear!

Hon. PF Members: Kanona!

Dr Musokotwane: Madam Speaker, they are not even middlemen for ZESCO Limited. No! When they buy that electricity, they sell it directly to the mines. So, those who are talking about Kanona and so forth, are talking out of ignorance.

Hon. Government Members: Hear, hear!

Hon. PF Members: Question!

Interruptions

Madam Speaker: Order!

Hon. Members, please, can we have some order.

Dr Musokotwane: Madam Speaker, the innovative reforms in the energy sector are very important, and that is why they have been recognised by the rest of the world, and Zambia is being praised.

Madam Speaker, partly as a result of the reforms, installed electricity generation capacity has increased to 3,886 MW in 2025, from 3,318 MW in 2021. In other words, since this Government came into office, the installed capacity for electricity has increased, and that includes on-grid and off-grid systems. Of that, over 80 per cent is hydropower. Our efforts are now targeted at increasing generation capacity from non-hydropower sources so as to minimise the risk of uncertain weather conditions.

Madam Speaker, to diversify the energy mix and end load shedding, the Government has facilitated the coming on stream of 125 MW of solar energy. Within the next twelve months, another 1,500 MW will come on stream. In addition, 300 MW from the new thermal power plant at Maamba Energy will come on board in 2026. Further, within the next two weeks, the President will officially open another 85 MW thermal power station just outside Lusaka.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Government is also promoting solar installation for public institutions, households and businesses. Our target is to increase the share of non-hydro renewable energy.

Madam Speaker, the energy crisis would have been far worse had Zambia not been connected to the Southern Africa Power Pool (SAPP), from where it can import and export power, depending on the need. Next year, only under the UPND Government, works will start on the interconnector between Zambia and Tanzania. With the interconnector, the energy system in Zambia will be connected not just to Southern Africa but to East African countries like Kenya, Uganda, Ethiopia and Tanzania. Had the interconnector been installed in the previous years, for example, in the last ten years under the PF, the current power crisis would not have materialised because Tanzania had surplus electricity last year, even now, which, however, it was unable to sell to us because there is no connection. Those who failed to install the interconnector must praise us for installing it.

Mr B. Mpundu: Opomwayambila ama praises!

Dr Musokotwane: Madam Speaker, the solution to increase generation capacity, which is necessary and is being implemented, will not be adequate to bring about immediate relief to consumers because it takes time for generating plants to be constructed. However, small businesses, in particular, those with little capacity to adapt, need immediate relief to survive. That is the solution that my colleague, the hon. Minister of Energy, through the Government, is working on, and will announce the details soon.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, works to accelerate rural electrification are ongoing, and the Government has continued to provide a conducive policy environment to adapt progressive reforms that attract the private sector. Next year, the Government will establish an electricity fund that will strengthen our electricity security and ensure a stable supply. The fund is something that I will announce later today. Other key reforms include a multi-year tariff framework, an electricity open access framework, net metering and the single licencing system.

Madam Speaker, as far as the petroleum sub-sector is concerned, the Government has, since 2022, been facilitating private sector participation in fuel procurement. This year, we have implemented the Tanzania Zambia Mafuta (TAZAMA) Pipelines Limited open access framework, which has liberalised petroleum transportation, and the country is already benefiting.

Transport and Logistics

Madam Speaker, over the years, Zambia has been transitioning from being a landlocked to a truly land-linked country. The transformation is being realised through deliberate interventions in the development, modernisation and maintenance of road, rail, air and water transport infrastructure. As we connect with neighbouring countries, in my 2025 Budget Address, I indicated that the 210 km Chinsali/Nakonde Road was at 98 per cent completion. The road has since been completed.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Government is constructing two toll plazas on the road and rehabilitating the 15 km stretch from the Chinsali/Nakonde Road junction to Chinsali Town. We have also completed the Mongu/Limulunga Road and Chibuluma Road, which is the first ever concrete road in Zambia. Further, the rehabilitation and upgrade of the Monze/Niko Road is at 74 per cent –

Interruptions

Madam Speaker: Order!

Hon. Members, can we have some order.

Mr B. Mpundu interjected.

Madam Speaker: Hon. Member for Nkana, please, desist from debating whilst seated.

This is the last warning.

Dr Musokotwane: Madam Speaker, the rehabilitation and upgrading of the Monze/Niko Road is at 74 per cent, and is expected to be completed this year. Rehabilitation of the Lusaka/Mongu Road from Tateyoyo Gate to Katunda is at 24 per cent, and is expected to be completed in 2026.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Further, Madam Speaker, rehabilitation of the Batoka/Maamba Road is at 39 per cent, with works expected to be completed in 2027. Maintenance of the Monze/Mazabuka Road has progressed and stands at 69 per cent. The Government is also currently upgrading the Chipata/Chadiza Road and the Blue Lagoon/Samfya/Lubwe/Kasaba Road. In 2026, the Government will embark on the construction of the Mufulira/Mokambo/Mansa via Chembe Road, the Luansobe/Mpongwe/Machiya Road, including Ngabwe Bridge, the Chipata/Lundazi Road, the Mutanda/Mwinilunga Road, the Livingstone/Kazungula/Sesheke Road …

Hon. Government Members: Hear, hear!

Dr Musokotwane: … and other vital road links.

Hon. Government Members: Repeat!

Dr Musokotwane: Madam Speaker, the Government is currently upgrading the Chipata/Chadiza Road and the Blue Lagoon/ Samfya/Lubwe/Kasaba Road. In 2026, the Government will embark on the construction of the Mufulira/Mokambo/Mansa Road via Chembe Road, …

Hon. Government Members: Hear, hear!

Dr Musokotwane: … the Luansobe/Mpongwe/Machiya Road, including Ngabwe Bridge, the Chipata/Lundazi Road, the Mutanda/Mwinilunga Road and the Livingstone/Kazungula/Sesheke Road.

Hon. Government Members: Hear, hear!

Kwenyu!

Dr Musokotwane: Madam Speaker, since 2022, the Government has signed ten public-private partnership (PPP) agreements in the road sector with an investment of US$1.7 billion, covering over 1,500 km, with more coming on board by the end of this year. That is an unprecedented milestone.

Mr B. Mpundu: Question!

Dr Musokotwane: Madam Speaker, the first PPP project, the Chingola/Kasumbalesa Road, was completed in December 2024. Progress on the construction of the 327 km Lusaka/Ndola Dual Carriageway, a flagship project, stands at 45 per cent. Just to remind the House, this project is expected to be delivered before the official completion date of August 2027. As part of the project, the 45 km Luanshya/Fisenge/Masangano Road was completed this year and is open to traffic.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Lusaka/Ndola Dual Carriageway is the one that was almost going to be –

Madam Speaker, our colleagues had proposed to spend US$2 billion on that road.

Mr Kampyongo: Question!

Dr Musokotwane: Madam Speaker, now, the road will be worked on at just over K600 million.

Hon. Government Members: Hear, hear!

Dr Musokotwane: From US$2 billion to K600 million, Madam Speaker.

Interruptions

Dr Musokotwane: Madam Speaker, construction works on the Ndola/Sakania/Mufulira Road are progressing well, with 17 km leading to Sakania Border completed. Other PPP projects with notable progress include the Kasomeno/Mwenda Road, the border post, the Lumwana/Kambimba and Katete/Chanida roads. Following the signing of the concession agreement for the rehabilitation and upgrading of 371 km of the Mutanda to Kaoma via Kasempa Road, works are expected to commence before the end of this year.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to support rural development and connectivity, the Government has embarked on the rehabilitation and maintenance of feeder roads under the Improved Rural Connectivity Project and, so far, 2,400 km have been rehabilitated and are under maintenance against a target of 4,200 km.

Madam Speaker, to facilitate the movement of goods and services, and to boost economic activities in rural areas, the Government targets to upgrade 808 km of feeder roads to gravel standard. The roads include the Lumpuma Mukutuma/Mukumbo Road in Lufwanyama, the Musele/Wamafwa Road in Kalumbila, the Chilombo/Katoya Road in Kaoma, the Nshindaila/Chungu/Kalaba Road in Lupososhi and Samfya, the Chisanga/Kakonko Road in Ngabwe, the Chinambi/Mbizi Road in Nyimba, Chikowa Turnoff in Kabindwa Village in Mambwe and the Lwimba/ Katoba Road in Chongwe. So far, 300 km have been completed. The remaining works will be completed.

Madam Speaker, in 2026, the Government will commence the construction of the Kalabo/Sikongo/Angola Border Road, the Mpika/Chinsali Road, the Serenje/Mpika Road and the Mwinilunga/Jimbe Road, including the border post at Jimbe.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Government will also commence works to rehabilitate the Mutanda/Kisasa/Mwinilunga/Jimbe Road and the road from Kasempa Turn Off to Kabompo via Mufumbwe.  The roads are a significant part of the Lobito Corridor.

Madam Speaker, the Government is rehabilitating and upgrading urban roads in eight districts, namely Choma, Kitwe, Luanshya, Lusaka, Mazabuka, Ndola, Sinazongwe and Solwezi. Of the 127 km of selected roads being worked on, 50 km will be completed this year and another 50 km in 2026. Further, to enhance connectivity, fifteen acrow bridges will be constructed across the country.

Madam Speaker, on railway system, currently, tripartite negotiations to concession the Tanzania-Zambia Railway Authority (TAZARA) railway system between the China Civil Engineering Construction Corporation and the Government of the United Republic of Tanzania and Zambia have been completed. Before the end of this year, the concession agreement to revamp TAZARA will be signed. Under the concession, railway infrastructure will be rehabilitated to enable efficient transportation of minerals, agricultural products, and other essential goods and passengers. The House may recall that Zambia also signed a concession agreement for the development of the Zambia-Lobito Railway Project, which will provide connectivity to the Lobito Port in Angola.

Further progress made on the project includes the completion of the first draft of the feasibility study. Other important milestones, such as the environmental and social studies, selection of the contractor and raising of capital, are underway. Once the Lobito and TAZARA railway projects are completed, and we know they will be done, Zambia will truly be the hub of the region. For the first time, there will be railway connectivity linking the West coast of Africa to the East coast of Africa. The transport hub is becoming a reality.

Madam Speaker, with regard to air transport, since 2021, the Government has rehabilitated the Kasama and the Chipata airports. The Mongu and Solwezi airports are completed. Further, works have commenced to upgrade the Mansa and Mfuwe airports. In 2026, construction works will start at the Choma, Kasaba Bay and Nakonde airports. Further, land for future development of the Chipata, Solwezi and Mongu airports has been secured.

Madam Speaker, to ease the movement of people and goods, and to facilitate trade, we have been undertaking border infrastructure development, which includes works at the Kazungula, Mwami-Mchinji and Nakonde border posts, which have been turned into one-stop border posts. Further, facilities at the Chirundu One-Stop Border Post will be upgraded. The Katima Mulilo, Kasumbalesa, Chanida, Sakania, Sikongo and Zombe border posts are earmarked to be upgraded and worked on under the PPP model.

Madam Speaker, with regard to water transport sector, the Government has completed the construction of Nchelenge Harbour, while works at Samfya Harbour are at 98 per cent completed. Looking ahead, the Government plans to develop other harbour infrastructure in Siavonga, Chipepo, Sinazongwe and Shangombo in 2026.

Mr Amutike: Quality!

Tourism Sector

Dr Musokotwane: Madam Speaker, tourism is a sector that has seen remarkable progress. In 2022, international arrivals in tourism were at 1.1 million. Last year, 2024, the arrivals doubled to 2.2 million.

Hon. Government Members: Hear, hear!

Mr Amutike: Numbers do not lie!

Dr Musokotwane: Madam Speaker, the improvement reflects the bold measures we took, such as stronger international marketing and visa waivers in the most important markets. I am happy to say that domestic tourism has also flourished. As of the end of 2024, we recorded 530,110 visits to our tourism sites in the country. Further, very interesting statistics again, hotel occupancy has seen a boost, with Livingstone hotels reporting 70 per cent occupancy compared to only 40 per cent in 2023. The average length of stay has also increased to five days from three days in the past, signalling increased interest.

Manufacturing Sector

Madam Speaker, manufacturing is another interesting sector, and also a very important risk. The House should pay attention. I am happy to report that the sector is among those that have attracted huge investments of over US$4 billion.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the multi-facility economic zones (MFEZ) have attracted some of the investment. By the end of 2021, the Lusaka South Multi-Facility Economic Zone had seventeen operational companies with an investment portfolio of US$264 million and over 7,000 jobs. In four years, meaning now, those investments have jumped to US$1.4 billion from twenty companies, with over 31,000 jobs created. There are major investments in the zone. These are verifiable facts. Anyone can visit the MFEZ to check for themselves and see some of the major investments that have happened there, which include ceramic, steel, starch and milk processing, copper rods, electric cables, conductors and pharmaceutical products factories.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the Jiangxi Multifacility Economic Zone in Chibombo has also attracted investment in excess of US$128 million. Batteries are manufactured and recycled, and copper cables are also manufactured at the economic zone, and more than 1,100 jobs have been created.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, there are other MFEZs like the Zambia-China Economic and Trade Co-operation Zone (ZCCZ) in Kalulushi and the Kalumbila Multi-Facility Economic Zone, and we are pushing hard to have investments come in.

Madam Speaker, to attract similar and more investments, the Government has declared new economic zones, which include the Wonderful Group Industrial Park in Chilanga, the Mukuni Multi-Facility Economic Zone in Kazungula District, the Monze Multi-Facility Economic Zone in Monze District, and the Golden Baobab Multi-Facility Economic Zone in Kafue District, with a total investment of US$3 billion, creating over 13,000 jobs.

Madam Speaker, here is another interesting statistic. I am happy to report that all essential machinery for the Zambia-China Mulungushi Textiles has been received and is being installed in readiness for the commencement. Kabwe, here we come.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, as you may recall, the factory is one that had promise after promise, visit after visit and photographic session after photographic session conducted, but nothing was done. Now, it is happening.

Small and Medium Enterprise Development

Madam Speaker, on micro, small and medium enterprises (MSMEs) development, since 2022, the New Dawn Administration has empowered over 103,000 individuals and about 9,800 MSMEs.

In the last four years, the Government, through the Citizens Economic Empowerment Fund, has empowered more than 83,000 beneficiaries under various schemes. The Government has made significant efforts to address the challenges faced by small and medium enterprises (SMEs) and farmers in accessing affordable finance. As of the end of August 2025, 19,000 SMEs had benefited from the Zambia Credit Guarantee Scheme. We are not only empowering our citizens economically, but also building the capacity of local businesses to compete.

Mr Amutike: Hear, hear!

Information and Communication Technology

Dr Musokotwane: Madam Speaker, the Government has prioritised the installation of communication towers in underserved and unserved areas. Going forward, the Government remains committed to ensuring that communication towers are installed to strengthen Electronic Governance (e-Governance) and other digital services. To provide digital services to underserved and unserved areas, the Government has, since 2023, deployed 525 Starlink kits to 230 Government departments, all 156 constituency offices, 109 post offices, twenty-three youth resource centres and other public institutions. Further, to improve public service delivery, the Government continues to roll-out the Government Wide Area Network (GWAN) to public institutions. So far, ninety-three local authorities, seventy district administration offices and twenty-nine schools have been connected. Everything I have said so far is what will push the agenda of job creation and economic growth.

HUMAN AND SOCIAL DEVELOPMENT

Education and Skills Development

Madam Speaker, the Government’s commitment to uplifting education is unquestionable. That is reflected in our commitment to providing free education, providing teaching and learning requisites, recruiting human capital, and developing infrastructure. The introduction of free education in 2022 lifted the burden of school fees from millions of families. We have witnessed an increase of about 2.3 million learners in primary and secondary schools, particularly benefiting girls and vulnerable children. I would like to repeat this point because it is a very important statistic. Since the free education policy was implemented, we have witnessed an increase to about 2.3 million learners in schools. Before the Free Education Policy, the 2.3 million learners were languishing without education. Now they are back in school. To complement the policy, the Government has scaled-up the home-grown school feeding programme, which now reaches 4.6 million learners in 106 districts. So, 4.6 million of the children in school are fed by the Government to ensure that they learn properly. In 2026, the number of districts with the school feeding programme will expand to 116. In other words, to all the districts in the country. The programme has provided every child with an opportunity to access education and remain in school regardless of their background.

Madam Speaker, to improve the quality of education, the Government has, since 2022, recruited 42,000 teachers. This year, 2025, we will recruit an additional 2,000 teachers.

Hon. Government Member: Hear, hear!

Dr Musokotwane: Madam Speaker, next year, just to ensure that we have enough teachers, an additional 3,500 will be recruited. So, 2,000 teachers this year and 3,500 teachers next year. One wonders what the children were learning in school in the absence of teachers before the UPND Government.

Hon. Government Members: Hear, hear!

Hon. PF Members: Question!

Interruptions

Dr Musokotwane: Madam Speaker, in addition, because our children used to sit on the floor, 1.6 million desks were procured across the country, out of which 42 per cent were procured from our own local suppliers using the Constituency Development Fund (CDF).

Madam, in my last address, I informed this House that construction of many high schools was abandoned for ten years all over the country. Now, as we continue to address the problem of abandoned works at high schools, 317 were under construction across the country. I am happy to report that 151 high schools were completed last year and forty-six are scheduled for completion this year. The remaining 120 will be completed in 2026.

Madam Speaker, the schools that were abandoned for ten years –

Interruptions

Dr Musokotwane: Madam Speaker, to improve infrastructure at our universities and to transform the learning environment, the Government will complete the construction of hostel blocks at the Copperbelt University (CBU) and the University of Zambia (UNZA) in 2026.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, works at other public universities are progressing well.

Interruptions

Dr Musokotwane: Madam Speaker, to align the education system –

Interruptions

Madam Speaker: Order, hon. Member for Bahati!

Please, leave the House. Go and laugh, and when you are done, you can come back. You have been laughing through and through.

Interruptions

Mr Chibombwe indicated dissent.

Madam Speaker: It is the hon. Member seated next to the hon. Member for Chilubi.

Hon. Members: Milenge!

Madam Speaker: Yes, the hon. Member for Milenge.

Laughter

Madam Speaker: Please, leave the House. Go and laugh. When you are done, you can come back.

Interruptions

Mr Chonde left the Assembly Chamber.

Interruptions

Dr Musokotwane: Madam, to align the education system with the demands of the labour market, the Government is implementing the 2023 Revised Curriculum. This is being done in a phased approach with full rollout expected in 2029.

Madam, in the area of skills development, the Government has since 2022, provided bursaries to 28,212 students and trained 2,010,000 youths from Technical Education, Vocational and Entrepreneurship Training (TEVET) institutions. In 2026, the Government is going to provide bursaries to 6,000 students and train 100,000 youths in various skills.

Health

Madam Speaker, our focus is on achieving universal health coverage and the provision of quality health services through the recruitment of health personnel, provision of medicines and medical supplies as well as infrastructure development.

Madam Speaker, since 2022, the Government has undertaken a massive recruitment exercise of health personnel with 18,305 hired, and an additional 2,000 health workers to be hired by the end of this year. So, before the end of the year, 2000 additional health workers will be recruited. The increase in the recruitment of health personnel has contributed to improved health service delivery. To consolidate the gains in the health sector, the Government will recruit another 2,500 health personnel in 2026.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, since assuming office, the New Dawn Administration has completed the construction of 282 health facilities nationwide. Of that number, seven are Level-1 hospitals, 111 mini-hospitals, thirty-three health centres and 131 health posts. To further increase access to health services, the Government has commenced, under Phase II, the construction of five Level-1 hospitals in Choma, Kabwe, Monze, Solwezi and Zambezi, and 120 mini-hospitals across the country. In 2026, the Government will continue to construct maternity annexes across the country using the Constituency Development Fund (CDF). 

Hon. UPND Members: Hear, hear!

Dr Musokotwane: Madam Speaker, last year, I informed this august House that the Government would commence the construction of the Ndola Cancer Treatment Centre (NCTC) and modernisation of the Cancer Diseases Hospital (CDH) in Lusaka. I, now wish to report that we have made progress. The NCTC is at 75 per cent completion while the modernisation of the CDH in Lusaka stands at 40 per cent completion.

Madam Speaker, to ensure the availability of medicines and medical supplies in health facilities, the Government has continued to procure essential medicines and medical supplies. As at the end of June 2025, essential drugs availability significantly increased to 90 per cent for health centres compared to 46 per cent in 2021. In 2021, medicine availability was at 46 per cent, but this year, availability is at 90 per cent. In addition, the Government is strengthening measures to eliminate pilferage. Our commitment to the provision of essential drugs and medicines remains strong.

Madam Speaker, to improve patient record management in public health facilities, the Government will continue to implement the SmartCare Pro System. This system has significantly contributed to efficient patient information exchange across public health facilities.

Water and Sanitation

Madam Speaker, since 2021, the Government has drilled more than 2,000 boreholes, rehabilitated 671 nationwide and built 491 piped water schemes benefiting over 687,000 people in rural areas. Further, the number of people served with water supply increased by 517,000, while sanitation services increased by almost 740,000. We are also constructing 168 modern waterborne sanitation facilities in schools, health centres, markets and bus stations. As a result of these interventions, incidences of waterborne diseases, such as cholera, have drastically reduced.

Madam, major water supply projects completed in the past four years include the Kafulafuta Water Supply System (KWSS), benefiting over one million residents on the Copperbelt Province and the Kazungula Water Supply and Sanitation Project (KWSSP), benefiting over 20,000 people.

Madam Speaker, the sector has also made concerted efforts towards improving operational efficiency. I think, this point is important to note. The operational efficiency includes meter installation, replacement of worn out water pipes. These have resulted in a reduction in wastage from 57 per cent to 54 per cent. Further, energy efficiency measures such as the installation of solar-powered pumps have contributed to the reduction in electricity costs. These measures create a strong foundation towards the attainment of universal access to clean water. However, there are challenges, such as the increasing gap between the cost of service provision and the average tariff.

Madam Speaker, the average cost of producing a cubic metre of water currently stands at K18, but when that is sold, it is sold for K7.90.

Hon. Members interjected.

Dr Musokotwane: Therefore, there is a gap between the cost of water production and the revenue that is collected, which is K10.10 per cubic meter or K1.3 billion cumulatively. Clearly, we need to do something on this matter and undertake reforms. Otherwise, there will be no sustainable supply of water.  So, we need to do something, as a country, to eliminate the gap between the cost of supplying water and the revenue.

Madam Speaker, to unlock the potential of the water and sanitation sector and attract the private sector, there is, therefore, a need to undertake structural and fiscal reforms as I have just said.

Social Protection

Madam Speaker, to safeguard the poor and vulnerable, the Government will continue to increase and broaden social security coverage through programmes such as the Social Cash Transfer (SCT), Food Security Pack (FSP) and Girls’ Education and Women’s Empowerment and Livelihoods (GEWEL).

Madam, to support the livelihoods of the vulnerable, the Government has in the past four years increased the number of beneficiary households under the SCT programme to 1.3 million from 895,000 in 2021. In 2026, the Government will further increase the number of beneficiaries to 1.5 million households …

Dr Musokotwane: … impacting over 8.4 million people.

Dr Musokotwane: This is, indeed, a caring Government.

Hon. UPND Members: Hear, hear!

Dr Musokotwane: This money is not stolen. It is delivered to the beneficiaries.

Madam Speaker, to support vulnerable, but viable farmers, the Government will increase the FSP beneficiaries to more than 320,000 from 244,000.

Madam, with regard to the GEWEL Programme, 317,608 girls and women were supported under Phase I. This year, the Government launched Phase II of the programme to benefit 1.5 million vulnerable households.

Madam Speaker, to safeguard our retirees from falling into destitution, the Government has continued to liquidate pension benefits. Over the past four years, more than K8.6 billion has been released, enabling 11,921 retirees to be fully cleared. This intervention reduced the average waiting period for pension payments from over three years to three months in 2023. However, due to resource caused by the impact of drought last year and resumption of external debt servicing, the waiting period has unfortunately risen to an average of one year. Despite these challenges, the Government has continued to release funds, and we hope to get back to three months in the near future.

Madam, our firm commitment is to further enhance pension benefits for public service workers by building a sustainable and resilient pension system. To this end, the Government has embarked on comprehensive pension reforms, which include the introduction of an occupational pension scheme for public service workers. These reforms are designed to resolve financing challenges and ensure that public pension funds are sustainable.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, in 2024, the Government introduced the Cash-for-Work Programme to cushion our citizens from the adverse effects of the drought. Under the programme, over 2.4 million beneficiaries have been recruited and empowered. The programme has provided income-generating opportunities to vulnerable individuals in exchange for cash wages. In 2026, the Government will reform the programme and address some of the challenges experienced and improve targeting. To leave no one in doubt, the Cash-for-Work Programme will continue in 2026.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, the Government is developing a national social registry to streamline social protection and human capital development. The registry will help in the administration and also sometimes in case of avoiding double-dipping by beneficiaries. So, that was the second pillar of the Eighth National Development Plan (8NDP). We have done economic growth and job creation, and we have just finished social development. We now go to the third pillar under Environmental Sustainability, thinking of what we are going ot do next year.

Environmental Sustainability

Madam Speaker, over the past four years, the Government has been promoting sustainable development and environmental protection by enhancing the regulatory framework, advancing green financing and investing in weather and climate services. This has made the country attractive in the global carbon market.

Madam, following the development of the Forest Carbon Regulations and Green Bond Guidelines, K1.5 million has been raised through the issuance of green bonds. These funds have been invested in solar projects in Riverside and Itimpi in Kitwe, resulting in the generation of 34 MW and 60 MW, respectively. The Government has also been implementing the Emission Reduction Programme (ERP), a mechanism through which participating groups and communities are provided with monetary rewards for conserving natural resources. So far, fifty-six chiefdoms in the Eastern Province are participating in the programme. Further, 359 community forest groups across the country have been designated over 10 million ha as forest management areas. To strengthen our national capacity for climate resilience, the Government has installed 250 automatic weather stations and 300 rainfall stations within agricultural camps across the country. These facilities transmit real-time data to enable timely and accurate monitoring of weather.

Madam Speaker, environmental pollution remains one of the most pressing challenges of our time. In particular, the indiscriminate disposal of plastics has become a major source of land and water contamination, threatening ecosystems and health systems. To address this, I will be announcing fiscal measures to discourage excessive use of plastics …

Hon. Government Members: Hear, hear!

Dr Musokotwane: … so that environmentally friendly alternatives are used.

Madam, equally, the unregulated use of mercury and other hazardous chemicals in mining activities poses danger, poisoning rivers, soils and affecting communities. To stop this, it includes strengthening enforcement against illegal mining, promoting mercury-free gold processing technologies and enhancing awareness campaigns on the dangers.

Good Governance Environment

Madam Speaker, let me move on to good governance, the last pillar of the 8NDP.

Madam Speaker, the Government has been strengthening the policy, legal and institutional framework for good governance, as well as enhancing the rule of law, human rights, constitutionalism, and the fight against corruption. This is being achieved through reforms such as fiscal consolidation and debt management.

Fiscal Policy

Madam Speaker, as far as the fiscal consolidation is concerned, what we have achieved in the last four years is a result of the significant legislative and administrative reforms we have implemented.

Madam Speaker, the contraction of debt is now required to be approved by Parliament, and financing of infrastructure projects is mostly through public-private partnerships (PPPs). With regards to the administrative reforms, we have rolled out the Information and Financial Management System (IFMS) across the Government, implemented the Smart Invoicing System (SIS), expanded the Government Service Bus (GSB), implemented the State-Owned Enterprise Policy (SOEP) and introduced the Fiscal Risk Management Framework (FRMF). To further reduce Budget deficits and consolidate fiscal sustainability, revenue mobilisation will be strengthened and the resources channelled to areas with maximum impact. 

Madam Speaker, to address prevailing gaps in the tax system, the Government will formulate the Medium-Term Revenue Strategy (MTRS) in 2026. The objective is to broaden the tax base and strengthen compliance. To simplify and harmonise tax administration procedures, the Government will, in this Session, present the Tax Administration Bill.

Madam Speaker, to improve the performance of SOEs, the Government revised the State-Owned Enterprises Policy. The policy aims at strengthening good corporate governance as well as enhancing fiscal performance. Furthermore, the Government is developing the State-Owned Enterprises Bill, which will be presented to the House in this Session. Regarding the fight against corruption, the Government is amending the Anti-Corruption Act. This is aimed at strengthening the independence of the Anti-Corruption Commission (ACC) …

Hon. Government Members: Hear, hear!

Dr Musokotwane: … and enhance anti-corruption enforcement. To increase transparency, the Government will amend the Companies Act to strengthen provisions on beneficial ownership by requiring the disclosure of ultimate owners of companies.

Debt Management

Madam Speaker, on assuming office, the New Dawn Administration made a commitment to restructure external debt and chart a path to debt sustainability. We are delivering on this commitment. So, far, we have reached an agreement on debt treatment for approximately 94 per cent of the debt within the restructuring perimeter. This is a demonstration of our commitment to restoring public debt sustainability to various challenges that this process has faced. In this regard, I wish to, once again, thank the creditors for being strong partners in the restructuring process.

Madam, the Government is current, in other words, the Government is now servicing payment on all restructured debt obligations, including the Eurobond. The debt distress and restructuring process has taught us a bitter lesson. To ensure that we do not repeat the mistakes of the past, we have amended the law to improve parliamentary oversight on public borrowing. We have established the Debt Management Office (DMO) responsible for annual debt sustainability analysis, medium-term debt strategies and credit risk analysis.

Madam, to strengthen risk mitigation in our public debt management, we will take a proactive market-based approach. This will involve various debt management operations aimed at optimising our debt portfolio as well as supporting the development of our domestic market using market-based solutions.

Constituency Development Fund

Madam Speaker, on assuming office in 2021, we made a bold decision to enhance the Constituency Development Fund (CDF). Since then, the programme has become one of the most powerful tools for delivering equitable, inclusive and sustainable development to our people. Communities all over the country love the CDF for obvious reasons; it is delivering development, which they have never seen since independence.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam, we must congratulate ourselves, as Zambians, for coming up with this noble idea of the CDF …

Dr Musokotwane: … on our own, which is having so much impact.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, since 2022, through the CDF, we have built 2,800 classroom blocks, rehabilitated 422 classroom blocks and procured 670,000 desks. To improve access to healthcare services, we constructed 131 health posts, 195 new maternity annexes, and to provide access to clean water and sanitation, we have drilled 1,941 boreholes, installed 531 water schemes and built 228 ablution blocks.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to enhance access to education and skills development through the CDF, 82,652 secondary school learners have been granted boarding bursaries and 151,518 youths have been enrolled in various skills training courses. All this is happening because the CDF has been decentralised to every corner of the country. If these monies were disbursed in Lusaka, a person in Liuwa, Sikongo, Katete or other villages would have had little chance. So, the money has now been taken to where the people are. Let us congratulate ourselves on this innovative idea.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam, these achievements are more than just numbers on a page. They represent lives that have been changed for the better.

Monetary Policy

Madam Speaker, the monetary policy will continue to play a critical role in fostering price stability by steering inflation back to the target band of 6 per cent to 8 per cent for the medium-term. We will also continue to strengthen the monetary policy framework, including reinforcing the use of the Kwacha in domestic transactions. The Bank of Zambia (BoZ) has conducted extensive consultation with stakeholders and will issue regulations by the end of this year. The regulations will outline exemptions and will be accompanied by detailed guidelines.

Financial Sector Policy

Madam Speaker, on the financial sector, the goal is to make the law responsive to developments in both the domestic and global financial landscape. This will be done by the revision of the Banking and Financial Services Act. This Bill will be tabled before this House during the current Session. To enhance the financial sector safety, the House will recall that when a bank closes, there is always turmoil among the depositors. To address that, I will table a Deposit Protection Scheme Bill before this House during the current Session. Further, the BoZ will issue the Banking and Financial Services (Deposit Protection) Rules by the end of this year. Under these rules, a fund will be established to pay out deposits up to a specified amount in the event of a bank closing.

Madam Speaker, to unlock access to affordable credit, the Government will continue supporting the de-risking of lending to Small and Medium Enterprises (SMEs) through the Zambia Credit Guarantee Scheme (ZCGS). In addition, the BoZ has made strides toward operationalising a K5 billion fund to support small businesses. Further, the credit guarantee scheme through commercial banks will continue.

External Sector Policy

Madam Speaker, the Government will continue to maintain a flexible exchange rate regime, build international reserves and provide market support to mitigate excessive exchange rate volatility. To support international reserves, the BoZ has so far purchased refined gold worth US$322.6 million as at end of August, 2025. To boost foreign exchange earnings, the Government will continue with its efforts to diversify exports.

PART THREE

The 2026 Budget

Madam Speaker, let me now move on to Part III of the Budget Speech, which is the 2026 Budget.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, I now present the 2026 National Budget whose allocations are in line with the priority programmes in the 8NDP. The allocations also support the theme that was in the President’s Speech regarding “Consolidating our socio-economic gains.”

Madam, I propose to spend K253.1 billion …

Hon. Members: Hear, hear!

Dr Musokotwane: … or 27 per cent of the gross domestic product (GDP). This will be financed from domestic revenues of K206.5 billion. In other words, almost 82 per cent of the Budget will be financed by our own efforts.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, grants from co-operating partners will be K12.1 billion or 4.8 per cent of the total Budget, and the balance of K34.5 billion or 3.7 per cent of the GDP will be financed through domestic and external borrowing. Domestic borrowing is projected at almost K22 billion or 2.3 per cent of GDP while external borrowing is K12.9 billion or 1.4 per cent of GDP.

2026 EXPENDITURE BY FUNCTIONS OF GOVERNMENT

General Public Services

Madam Speaker, I now present the 2026 Budget by functions of the Government.

Madam Speaker, I propose to spend K92.6 billion or 36.6 per cent of the Budget on General Public Services. Significant outlays under this category include K52 billion and K22 billion for domestic and external debt services, respectively. So, the payment of domestic debt is K52 billion and foreign debt is K21.7 billion.

Madam, you may wish to note that the burden of servicing domestic debt at K52 billion is now much higher compared to that of external debt at K21.7 billion. This has risen because between 2015 and 2021, there was an aggressive domestic borrowing programme through the issuance of Treasury Bills and Government Bonds. The bonds are now maturing, starting next year. So, these instruments are maturing and hence the big jump in domestic debt servicing particularly in 2026. After that, it will slow down. It is clear, therefore, that the effects of excessive borrowing during those days are still with us.

Madam Speaker, I have also allocated K1.2 billion for costs relating to the conduct of the 2026 General Elections, including other election-related activities.

Madam Speaker, to continue empowering our local authorities and ensure equitable distribution of resources, I have allocated K1.4 billion to the Local Government Equalisation Fund (LGEF). Further, K810.2 million has been allocated to the Compensation Fund to facilitate payments for court cases won against the Government. K4.7 billion has been allocated towards the dismantling of arrears to suppliers of goods and services.

Economic Affairs

Madam Speaker, expenditure proposals under the economic affairs, I propose to spend K58.6 billion or 23.2 per cent of the Budget on economic affairs. Of this amount, K15.5 billion will be for the agriculture, fisheries and livestock sectors. This includes the K15.5 billion; K9.2 billion is for the Farmer Input Support Programme (FISP), K2.1 billion for maintaining strategic food reserves and K764.7 million for animal health services including what I said earlier on the implementation of the Zambia Beef Export Programme (ZBEP). So, K764.7 million for animal health and also to support the Zambia Beef Export project.

Dr Musokotwane drank water.

Hon. Members: Hear, hear!

Mr Kambita: Hammer!

Dr Musokotwane: Madam, I propose to allocate K14.5 billion for the construction, rehabilitation and maintenance of roads, including urban and feeder roads.

Madam Speaker, although I know that this is not adequate, in the meantime, the Government will continue to construct roads using the PPP Model so that the cash saved may be deployed on roads that cannot attract PPP funding.

Madam Speaker, I propose to increase spending on mining-related activities to K1.2 billion. Of this amount, K542 million is to continue with the aerial, geological and geophysical mapping, while almost K500 million is allocated to support artisanal and small-scale mining …

Hon. Members: Hear, hear!

Dr Musokotwane: … mainly for the construction of mineral processing hubs and marketing centres. To operationalise the Mineral Regulation Commission (MRC), I have allocated almost K76 million.

Madam, this expenditure is an important investment that will open new doors for yet more mining in our country. In this regard, Zambia is, indeed, in the next few years, destined to be an even stronger mining country with an equally strong economy.

Madam Speaker, I propose to spend K1.5 billion in the tourism sector to improve infrastructure, support wildlife conservation and tourism marketing, among others.

Madam, to continue supporting development at the local level, I propose to increase the allocation to the CDF to K6.2 billion. This translates to K40 million per constituency from K36.1 million. .

Hon. Members: Hear, hear!

Dr Musokotwane: Madam, …

Interruptions

Madam Speaker: Order, hon. Members!

Hon. Minister, there is a request to repeat that statement.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, to continue supporting development at the local level, I propose to increase the allocation to the CDF to K6.2 billion. This translates to at the constituency level, a rise from K36.1 million to K40 million per constituency.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, I propose to allocate K1.1 billion for developing provincial airports to enhance air connectivity and position Zambia as a regional hub.

Madam, K851.7 million has been allocated to the Zambia Credit Guarantee Scheme (ZCGS), which includes resources for the Sustainable Agriculture Financing Facility (SAFF). I, further propose to increase the allocation for empowerment funds to K588.5 million from K391 million this year.

Madam Speaker, as I said earlier, I propose to allocate K500.0 million for the establishment of the Electricity Fund.

Education

Madam Speaker, I propose to spend K33 billion or 13 per cent of the total Budget on education. Of this amount, K2.4 billion is set for free education and K2.3 billion for the completion and rehabilitation of school and university infrastructure across the country. Once approved, these expenditure proposals will consolidate the gains made in the socio-economic sphere.

Madam Speaker, to enable more students benefit from the loan scheme and access tertiary education, I have allocated K1.4 billion to the Higher Education Loans and Scholarship Board (HELSB). This will ensure that students from poor families can be supported. It is at these universities and colleges where the future of our country lies. This is where we produce the engineers, technicians and accountants who will drive the strong growth of our economy now and in future. You will be pleased to note that some companies in Zambia have already foreseen a shortage of engineering skills, because they are planning ahead. Therefore, they have started to sponsor engineering students. I have allocated K300 million to the revised national education curriculum to equip learners to be more relevant to the demands of the labour market.

Hon. Members: Hear, hear!

Health

Dr Musokotwane: Madam Speaker, I propose to spend K26.2 billion or 10.3 per cent of the total Budget to support the health sector. Out of this amount, K6.4 billion is apportioned to the procurement of drugs and medical supplies. The expenditure on the procurement of drugs and medical supplies has increased by 30 per cent from this year’s allocation. The increase is to cover the gap that has emerged following the withdrawal of some external support.

Madam Speaker, I am happy to hear from colleagues in the health sector that the availability of drugs and medicines has improved, as I said earlier. I have also allocated K953.5 million for the maintenance and procurement of essential medical equipment.

Madam Speaker, I have allocated K1.7 billion toward health infrastructure development to expand access to healthcare nationwide. Of this amount, almost K250 million will be for the on-going construction of mini-hospitals under Phase II of the project.

Housing and Community Amenities

Madam Speaker, I propose to spend K3.2 billion on housing and community amenities. Out of which, K1.8 billion is to improve access to safe drinking water, particularly in rural and peri-urban areas.

Public Order and Safety

Madam Speaker, I propose to spend K9.6 billion to maintain public order and safety. Key interventions will include modernisation of our security wings and improvement of infrastructure. This will ensure that Zambia continues to remain a peaceful country where no one fears being harmed by either criminals or political thugs.

Madam Speaker, to reinforce our fight against corruption, I propose to increase the allocation to law enforcement agencies by 18 per cent to K940.7 million. I also propose to spend K217.8 million to support the implementation of the Integrated National Registration Information System (INRIS).

Social Protection

Madam Speaker, to support our vulnerable people, I propose to spend K15.7 billion on social protection programmes. Significant provisions include K7.6 billion for the SCT programme and K4.9 billion for pension payments to our retirees.

Madam Speaker, I propose to increase the allocation for the Food Security Pack to K1.5 billion from K1.2 billion to include more beneficiaries.

Other Functions

Madam Speaker, I propose to allocate K14.1 billion to the remaining functions of defence, environmental protection, as well as recreation, culture and religion. Of this amount, K200.6 million is for chiefs’ affairs, which has been increased by 25 per cent to improve the welfare of our traditional leaders.

Hon. Members: Hear, hear!

Revenue Measures

Dr Musokotwane: Madam Speaker, before I present revenue measures, let me remind the nation that it is the responsibility of everyone to contribute money to the Treasury through taxation and payment of fees. It is everyone’s responsibility and no one else. Unfortunately, many of our colleagues, especially in the informal sector, do not want to pay taxes, yet they speak the loudest when it comes to demanding public services. We cannot keep increasing taxes on the same people in the formal sector. We cannot keep taxing teachers, doctors, clerks, and accountants when others in the informal sector, who are making money, are not paying anything, but make the loudest noise when demanding public services. Some of the tax proposals I will present today are, therefore, intended to claw some money from those who hide from paying taxes.

Madam Speaker, to enhance domestic resource mobilisation and provide targeted relief to spur growth, allow me to propose the revenue measures.

Madam Speaker, to stimulate local manufacturing and value addition, I propose to revise the selected goods surtax and customs duty on imported steel products, pasta, processed meat and edible offal, carbon dioxide, flexible polyvinyl chloride (PVC) pipes, polyester fibre, and float glass. This means that all the mentioned items will become more expensive when imported because there are local alternatives available that we must support.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, in addition, I propose to remove customs duty on complete knock-down components for the assembly of motor vehicles, including tipper trucks, electric vehicles, tricycles, motorcycles, truck trailers, and tractors.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, watch the space. We are taking such measures so that the named items can be manufactured locally in Zambia.

Hon. Members: Hear, hear!

Hon. Government Members: Repeat!

Dr Musokotwane: Okay, I will repeat.

Madam Speaker, I propose to remove customs duty on complete knock-down components used for the assembly of motor vehicles, including tipper trucks, electric vehicles, tricycles, motorcycles, truck trailers, and tractors so that they get made in Zambia.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, Micro, Small and Medium Enterprises (MSMEs) must grow. For this to happen, they need our support. I, therefore, propose to provide tax relief as follows:

1. increase the tax-exempt threshold for turnover tax and rental income tax to K2,500 from K1,000 per month;

 

This means that, previously, if one earned a turnover and rental income of K1,000 per month, one was liable for tax.  The K1,000 threshold has now been shifted to K2,500, so that is when one will have to pay tax. So, it is a relief.

 

1. increase the turnover tax threshold for artisanal and small-scale mining to K5 million from K800,000, for the same reason as highlighted in part (a); and
2. reduce the penalty for late turnover tax payment to 0.5 per cent from 5 per cent.

 Madam Speaker, I said earlier on that we need to attract investment in the electricity subsector to deal with the problem of lack of power. Electrical equipment already has significant tax incentives, but what remained was the transportation of generated electricity from the generation to the point where it is needed. So, the relief being provided is on how to transport electricity from the generating point to the market. To achieve that, I propose to do the following:

1. provide duty relief for machinery and equipment required for transmission and distribution of electricity; and
2.  increase the period to ten years from seven years, in which a business in hydroelectricity generation can claim a refund on Value Added Tax (VAT) incurred on eligible goods before the commencement of commercial operations.

 

Madam Speaker, with that initiative, the chain is now complete. There are incentives for generating and transporting electricity from the point of generation to the market.

Madam Speaker, to promote investment and value addition in the livestock and dairy subsectors, I propose to do the following:

1. increase customs duty on powdered milk imported for resale and for further processing to 40 per cent and 25 per cent from 25 per cent and 15 per cent, respectively;
2. harmonise, at 10 per cent, the selected goods surtax on imported milk, cheese and yoghurt;
3.  increase customs duty on cheese, yoghurt and long-life milk to 40 per cent from 25 per cent;
4.  remove the 15 per cent customs duty on milk pasteurisation machinery; and
5.  extend the 2 per cent local content allowance to income earned from value addition to milk, raw hides and skins.

Madam Speaker, to support climate resilience and the reduction of greenhouse gas emissions, I propose the following:

1. reduce excise duty to 15 per cent from 30 per cent on selected new hybrid vehicles. We had a situation whereby hybrid vehicles were taxed like regular vehicles;
2.  change the valuation of duty for used hybrid motor vehicles to specific rates; and
3. increase the excise duty to 100 per cent from 30 per cent on single-use plastics. This will be done in several stages, beginning in 2026, to address the issue, which hon. Members cheered on, on the plastics.

 

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, in the following year, 2027, the excise duty will again be increased so that the cost of using plastics increases. In the third year, the production of such items will be completely banned. Three years is enough time for people to make adjustments.

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, I propose the following additional tax measures:

1. harmonise the customs duty on firearms (guns) upwards at 25 per cent;
2.  introduce a 30 per cent excise duty on firearms and ammunition;
3.  exclude buses with a seating capacity of fifty and above from presumptive tax, and register them under turnover tax or Corporate Income Tax (CIT);
4.  zero-rate the supply of mains (piped) water for VAT purposes. This is to address the gap I spoke about between the cost of producing water and the price at which it is sold;
5.  remove the five-year carry-forward limitation period of disallowed interest;
6. increase the allowable income tax deduction for companies employing persons with disabilities to K2,500 from K2,000; and
7.  extend the charge of advance income tax to all remittances. In other words, for people who remit funds without paying tax, we have put a tax on remittances unless there is proof that they have been taxed. Others avoided using banks and instead used other mechanisms. So, the tax will now be extended to all other mechanisms where funds can be transmitted without paying tax.

Madam Speaker, I propose to adjust upwards citizenship fees. You have heard that in certain places, people are required to pay hundreds or thousands of dollars to obtain citizenship.  Clearly, those who want to come to Zambia, we believe, must have a strong will to come because they have seen some milk and honey here. Therefore, we will increase the fees.

Hon. Members: Hear, hear!

 Dr Musokotwane: Of course, we welcome them, but this is what we are talking about. So, I propose to adjust upwards citizenship fees, visa fees for countries whose nationals are required to obtain a visa, firearm license fees, and mobile money levy rates. Please, understand me. The track fees on mobile money are not a tax on mobile money companies, but on those who do not want to pay tax, yet often send multiple amounts, such as K5,000, K10,000, or K15,000 somewhere. Clearly, it means they have money. Is it not so? So, why should they not pay anything, but a teacher and a nurse must pay tax? So, the fees are not for mobile money companies. These are fees targeted at those who make transactions.

Further, Madam Speaker, I propose to adjust toll fees upwards on all motor vehicles except small and light vehicles and buses.

Housekeeping Measures

Madam Speaker, I also propose to amend the Income Tax Act, the Customs and Excise Act, the Value Added Tax Act, the Zambia Revenue Authority Act and other relevant laws. This is aimed at updating, strengthening and removing ambiguities in certain provisions of the laws and making revenue administration more effective.

 PART FOUR

Conclusion

Madam Speaker, the past four years have been momentous. The United Party for National Development (UPND) took over the administration of our country at a time when there were serious challenges. Lawlessness reigned as political cadres terrorised citizens …

Hon. Government Members: Hear, hear!

Dr Musokotwane:  … and became the law unto themselves to the extent that they would even raid police stations and police officers would scamper. Elections became rivers of blood. Economic governance was also seriously challenged. Our country was heaped with unsustainable debt against the advice of both local and foreign experts. Utilisation of public resources became questionable, …

Mr Kampyongo: Question!

Hon. Government Members: Hear, hear!

Dr Musokotwane: … in some cases, leading to revelations later through investigations and court judgements of massive corruption.

Madam Speaker, where governance has broken down, good economic performance is unlikely, and this was the case in our country. Combined with challenges of the Coronavirus Disease (COVID-19) pandemic, we saw our mining industry collapsing, and so did many other industries. Citizens, especially the weak and those in rural areas, paid a heavy price for the declining economy. That is why the UPND or the New Dawn Administration upon taking over Government, committed itself to fixing the economy and bettering the livelihoods of our people.

Hon. Government Members: Hear, hear!

Dr Musokotwane: This is what we have been doing since 2021:  fixing the economy, fixing the country.

Mr Kampyongo: Question!

Hon. Government Member: Ah, Kampyongo!

Madam Speaker: Order, hon. Members!

Sound interference

Madam Speaker: Order, hon. Members!

Did somebody say something?

Hon. Members: No.

Madam Speaker: Okay, thank you.

Let us put our mobile phones on silent if they are on, please.

Dr Musokotwane: Madam Speaker, many of the decisions the Government made to fix the economy were taken in this House as we deliberated together to improve our economy and push more resources towards the poor.

Madam Speaker, I stand before you today, filled with pride to report that we have now fundamentally transformed the economy in readiness for further economic expansion and greater opportunities for our citizens. The debt burden, which had crippled the economy, has been eased as we have reached debt restructuring agreements with most of our creditors. New investments in various sectors have been attracted as investors who once looked away are now choosing Zambia as a land of opportunity.

Madam Speaker, five years ago, who would have imagined that Zambia would be a major exporter of fertilisers when the country was a big importer of the same commodity? Or that this country would have a big steel industry? Or that Mulungushi Textiles in Kabwe, which was almost turned into a shopping mall, would truly come back to life as a factory producing textiles? Or that Tanzania-Zambia Railway Authority (TAZARA) would come back to life? Or indeed that mines like Konkola Copper Mines (KCM), Mopani Copper Mines, Kalengwa Copper Mine, and others would come back to life and brand-new ones like KoBold Metals and Kitumba Mine would emerge?

Hon. Members: Hear, hear!

Dr Musokotwane: Madam Speaker, farmers are now producing more because of the interventions the Government has put in place, such as the enhanced Electronic Voucher (e-Voucher) System and access to affordable loans.

Madam Speaker, our children, who are the future leaders, now have the opportunity to not only go to school but also sit in proper classrooms with good desks. An unprecedented number of teachers, many of whom after training stayed home for ten years waiting for jobs, have been hired to teach our children. Youths are being provided with bursaries. This Government is not taking away meal allowances from the students. It is adding more to the student’s meal allowances.

Hon. Government Members: Hear, hear!

Dr Musokotwane: The quality of education is being improved.

Mr Sampa: Question!

Dr Musokotwane: Madam Speaker, we have transformed the health sector through the construction of new hospitals and maternity annexes. Distances to health facilities have reduced because in many constituencies, wherever there is a school, there is also a newly constructed health facility. So, where there is a school, there is also a clinic.

Hon. Government Member: And water!

Dr Musokotwane: Yes, and water. That is what is happening in our country today.  Our mothers in remote areas can now deliver in decent maternity wards. We have improved the stock of medicines, and for those who steal medicine, we will go after them.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, we have recruited thousands of health personnel. The quality of our health services has improved. We are improving the basic necessities of life.

Madam Speaker, this transformation is not the achievement of the Government alone. This is a testament to the sacrifice of every citizen who worked hard in the markets, in the shops, on the farms, in the mines, in the classrooms, in the hospitals and in many other fields of work.

Madam Speaker, the work of the Government is far from over. Challenges such as youth unemployment and poverty cannot be totally eliminated in four years. Before jobs are created, the SCT and Cash-for-Work programmes are available to support those who have no jobs at the moment.

Hon. Government Members: Hear, hear!

Dr Musokotwane: However, what is clear is that the decline of the past has been arrested and the country is now headed in the right direction.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, the commitment and competence demonstrated by the Government thus far to reverse a terrible situation to one of hope should give everyone hope that the outstanding challenges will be resolved in a similar manner. These achievements are just a stepping stone towards improving the livelihoods of our people.

Madam Speaker, I thank the people of Zambia for their support. I thank the President and Cabinet for their support and, above all, good leadership.

Hon. Government Members: Hear, hear!

Dr Musokotwane: Madam Speaker, lastly, …

Hon. Opposition Member: What about us!

Dr Musokotwane: … I thank you, and all the hon. Members of Parliament in this House …

Hon. Members: Hear, hear!

Dr Musokotwane: … for standing together to do the good things for our people. It is this House that made vital changes like eliminating subsidies on fuel and cutting out other less critical expenditures so that the money saved can be utilised to introduce free education, increase the CDF, increase the SCT, and introduce the Cash-for-Work programme. That is leadership. I thank all the hon. Members of Parliament for such solidarity. Together, we are, indeed, consolidating economic and social gains towards a prosperous, resilient, and equitable Zambia.

Madam Speaker, I thank you.

Hon. Members: Hear, hear!

Madam Speaker: Order, hon. Members!

Have you noticed something different about the hon. Minister of Finance and National Planning? He does not need spectacles anymore. He read without spectacles.

Hon. Members: Hear, hear!

Interruptions

Madam Speaker: Order, hon. Members!

Mr Mushanga: Proceed, Madam Speaker.

Laughter

Hon. Government Member: Order!

Madam Speaker: Hon. Members, in line with Order No.166(2) of the National Assembly of Zambia Standing Orders, 2024, the Estimates stand referred to respective Committees for detailed consideration. In that regard, the Expanded Planning and Budgeting Committee is expected to submit its report on the Estimates to the House by Tuesday, 28^th October, 2025. However, following a resolution by the House Business Committee at its meeting held on 24^th September, 2025, the House will reconvene for one day on Thursday, 2^nd October, 2025, to enable it deal with urgent business in line with Standing Order No.166(4).

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MOTION

ADJOURNMENT

The Vice-President (Dr Nalumango): Madam Speaker, I beg to move that the House do now adjourn.

Question put and agreed to.

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The House adjourned at 1647 hours until 1430 hours on Thursday, 2^nd October, 2025.

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