THE Minister of Finance and National Planning, Situmbeko Musokotwane, has described 2024 as one of the most challenging years for Zambians due to the severe drought, famine, and the effects of the unsustainable debt the country has experienced.
Mr Musokotwane noted that life has not been easy for citizens as two of the country’s major mines, Konkola Copper Mine and Mopani, were struggling.
He stated that the Government needed to build a resilient economy as a solution to these challenges.
Speaking during the Town Hall Forum on the 2024 Budget and Economic Performance, and the 2025 Economic Outlook at the Mulungushi International Conference Centre, Mr Musokotwane added that preventing famine was one of the key challenges, as maize production had dropped by about 55% to 1.5 million tonnes from 3.3 million tonnes in the 2022/23 farming season.
He said the Government had implemented interventions, including increasing the coverage of the social cash transfer program, raising the amounts received by eligible persons from K400 to K800 every two months, and providing cash-for-work programs, among others.
Additionally, Mr Musokotwane disclosed that more money would be allocated towards the Sustainable Agriculture Financing Facility (SAFF), which is intended to assist farmers beyond fertilizer support by including other activities like irrigation.
At the same event, the Zambia Revenue Authority (ZRA) unveiled its annual revenue performance for 2024 and the administrative reforms planned for 2025.
Speaking on the report, ZRA Commissioner General Dingani Banda revealed that in 2024, the ZRA collected ZMW 148.5 billion in gross revenue, falling short of the ZMW 155 billion target.
Mr. Banda emphasized that the contribution of tax revenue to the national budget has steadily increased, rising from 55.7% in 2020 to a projected 71.7% in 2025.
He added that the tax-to-Gross Domestic Product (GDP) ratio in 2024 is estimated at 19.5%, marking a steady improvement from the 18.3% average over the past five years.
Mr Banda stated that the ZRA has set a tax revenue target of ZMW 155.7 billion for 2025, representing a nominal annual increase of 21.3%.
He explained that administrative reforms, including enhanced digital tax systems and stronger enforcement mechanisms, aim to sustain growth and improve compliance.
Mr Banda further noted that the 2025 strategy aligns with the government’s broader economic goals, ensuring sustainable revenue growth while expanding the tax base.
He expressed confidence that these reforms would address existing challenges and capitalize on new opportunities.
