World Bank upgrades Zambia's growth outlook as reforms pay off

The World Bank has upgraded Zambia's economic growth forecast, saying years of reform and better economic management are starting to pay off.

In its latest Africa economic update, released on Tuesday, the World Bank named Zambia alongside Nigeria, Ethiopia and Angola as countries whose growth outlook has improved. It credited the gains to reforms in recent years and stronger management of their economies.

The upgrade comes as the World Bank raised its overall growth forecast for Sub-Saharan Africa in 2026 to 4.3%, up from the 4.1% it projected in April. Forecasts were raised for nearly three-quarters of countries in the region, despite a tough global environment and higher energy prices driven by conflict in the Middle East.

"Economic activity in Sub-Saharan Africa continues to demonstrate remarkable resilience," said Andrew Dabalen, the World Bank's Chief Economist for Africa.

The report also noted that debt levels across the region have stabilised, with the average debt-to-GDP ratio at around 57%.

Looking ahead, Dabalen said the next challenge is turning growth into more jobs and better opportunities. He urged governments to invest in practical, low-cost uses of artificial intelligence, such as tools that support student learning, help farmers manage livestock disease and automate accounting for small businesses.

The upgrade comes as President Hakainde Hichilema's government continues to implement its economic reform programme under the Grow Zambia agenda.