ZIPAR and UNICEF Highlight Need to Sustain Investment in Children as Zambia’s Economy Stabilizes

Lusaka, 26 August 2026 – Zambia has made encouraging progress in strengthening economic stability, creating an important opportunity to continue advancing national development priorities. Against this backdrop, UNICEF and the Zambia Institute for Policy Analysis and Research (ZIPAR) today launched the Mid-Year Budget Analysis Report and the policy brief Turning Debt Relief into Investment for the Next Generation. The two reports highlight that sustaining this progress will depend, in part, on ensuring that planned investments in key social sectors are implemented effectively and reach children, families and communities.

As Zambia manages new and ongoing fiscal pressures, including debt repayments, fuel price dynamics, climate-related shocks and global economic uncertainty, the two institutions encourage continued attention to financing and delivery of essential services such as health, education, social protection, nutrition, water and sanitation. Strengthening these services will help ensure that Zambia’s economic gains contribute to better outcomes for children and support the country’s long-term social and economic development.

“The Government welcome such reports as they represent feedback and enhance greater accountability and good governance, which are essential ingredients for effective public service delivery,” said the Permanent Secretary Budget and Economic Affairs, Ministry of Finance and National Planning, Ms Mwaka Mukubesa, who added that as we formulate the 9^th National Development Plan, Government priorities include ensuring that macroeconomic and other development milestones achieved are sustained and translate into better service delivery, stronger human capital and tangible improvements in the lives of Zambians.

The launch brought together government representatives, policymakers, development partners, civil society, academia, media and other stakeholders to discuss Zambia’s fiscal performance, social sector spending trends, and the implications of global economic shocks for children, vulnerable households, public services and national development priorities.

The 2026 Mid-Year Budget Analysis Report finds that Zambia maintained progress in macroeconomic stability during the first half of 2026, supported by lower inflation, exchange rate stability and continued implementation of economic reforms. However, revenue collection fell below target despite strong mining tax receipts supported by higher copper prices, while spending performance varied across sectors and spending categories.

The policy brief, Turning Debt Relief into Investment for the Next Generation, highlights the importance of ensuring that gains from economic recovery and debt restructuring translate into sustained investment in health, education, social protection, nutrition, water and sanitation services that are critical to children’s well-being and Zambia’s long-term development.

“The recommendations presented today provide a practical roadmap. They encourage stronger prioritization of social spending, better budget execution, greater efficiency, stronger accountability and closer monitoring of results. These are not simply technical recommendations; they are investments in Zambia’s human capital. Every kwacha invested in children strengthens the country’s future workforce, builds resilience and supports inclusive economic growth. As we move forward, let us keep one principle firmly in mind: recovery is successful only when children benefit from it,” said Dr. Saja Farooq Abdullah, UNICEF Zambia Representative.

ZIPAR and UNICEF encourage policymakers to:

• Protect investment in health, education, nutrition, social protection and WASH as fiscal pressures increase, to safeguard gains in human development.
• Strengthen financing for frontline services so that budget allocations translate into better results for children and communities.
• Use the fiscal space created through debt restructuring to increase investment in children and build the human capital needed for long-term economic growth.
• Improve the efficiency and effectiveness of public spending to maximize the impact of every kwacha spent.
• Ensure future borrowing and fiscal policy decisions support sustainable development and deliver benefits for both current and future generations.

“Zambia has successfully restored macroeconomic stability and fiscal prudence, but stability and discipline are the foundation, not the finished house. The task before us now – for Government, development partners, and civil society alike – is to convert macro stabilization into resilient human capital,” said Mr. Zali Bryson Chikuba, ZIPAR Executive Director.

The two reports contribute to ongoing policy dialogue on how Zambia can build on recent macroeconomic gains, strengthen investment in people, and ensure that the benefits of economic recovery and debt restructuring contribute to improved outcomes for current and future generations.

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Note to Editors:

The Mid-Year Budget Analysis: The Mid-Year Budget Analysis is an annual evidence product jointly produced by UNICEF Zambia and the Zambia Institute for Policy Analysis and Research (ZIPAR). It provides an independent assessment of Zambia’s mid-year budget performance, with a focus on budget execution, revenue and spending trends, and the extent to which public resources support national development priorities, including investment in children and key social sectors.

Link: Key Photos of Launch