The Editor Zambia
Even critics can now attest and accept that President Hakainde Hichilema’s key policy transformation has started to bear fruit, and Zambia will never be the same.
The Zambian economy is back on track, and this isn’t just a mere statement – it’s the reality, with all economic fundamentals pointing towards a growth trajectory 
Upon his election in 2021, President Hichilema inherited a struggling economy, but he swiftly tackled corruption and prioritised economic diversification, anchored on accountability and transparency.
The 5th Best Performing President on the globe has once again delivered.
The Central Bank’s latest move to cut the Monetary Policy Rate to 13.5 percent, marking the second straight rate reduction, marks another key millstone in Zambia’s economic transformation agenda.
A few weeks ago, inflation fell to 9.4 percent in January, supported by a bumper maize harvest and a stronger Kwacha.
Zambia has delivered a second straight interest rate cut as the Bank of Zambia signals stronger confidence in the country’s improving economic outlook.
The Monetary Policy Committee (MPC) reduced the benchmark lending rate by 75 basis points to 13.5 percent at its February 9–10, 2026 meeting.
In arriving at the decision, the Committee took into account the further decline in inflation in Q4 of 2025, the projected fall of inflation into the 6-8 percent target band at a faster pace than was forecast, and the need to maintain an appropriate monetary policy stance.
Zambia’s Central Bank has cut the Monetary Policy Rate to 13.5 percent, marking the second straight rate reduction. This move will help stimulate economic activity.
According to the Central Bank, it expects inflation to reach the 6–8 percent target band by Q2 2026 driven by stronger investor sentiment, rising copper prices, and forex inflows continue to support economic stability.
This move is expected to increase borrowing, stimulate economic growth, and potentially lower inflation. In simpler terms, the Bank of Zambia is making it cheaper for banks to borrow money so they can lend more to individuals and businesses, boosting economic activities.
Therefore, banks are expected to also reduce the cost of lending. This means borrowing money may become cheaper, so people and businesses can grow and spend more.
This development comes as the country continues working to stabilise its public finances from the dead economy left by the Patriotic Front (PF).
Although the debt-restructuring process has moved slower than expected, easing inflation pressures give room to support economic activity with a more accommodative stance.
With two consecutive rate cuts and inflation projected to keep falling, Zambia is positioning itself for lower borrowing costs, improved investor confidence, and a steadier economic path in 2026.
President Hichilema has positioned Zambia for lower borrowing costs, improved investor confidence, and a steadier economic path in 2026.
The economic recovery programme by President Hichilema was a tough and not overnight process but had to take time, and results are here for everyone to see.
President Hichilema’s economic policies are achieving results with precision as Monetary Policy Rate reduction, currency appreciation, and price reductions, among others.
The immediate benefits of this achievement include macroeconomic stability and confidence for both domestic consumers and international investors.
The economic fundamental gains will slowly start passing the benefits to the ordinary Zambian through reduced commodity prices, reduced cost of doing business, and more liquidity in the market.
This development by the Bank of Zambia means lower interest rates on the way. This translates to lower commercial lending rates and a reduced cost of doing business.
Small and Medium Enterprises (SMEs) will now have access to cheaper funding to expand their business, which lead to the creation of jobs in the economy. This means lower interest rates, cheaper borrowing, and more cash flowing around.
