CABINET has approved a comprehensive set of economic policies aimed at boosting employment, fostering economic growth, and ensuring fiscal sustainability, according to a “Green Paper” released by Chief Government Spokesperson Cornelius Mweetwa.
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The decisions were made during a special Cabinet meeting convened by President Hakainde Hichilema last Friday.
A key focus of the new policy framework is the creation of new job opportunities across various sectors to tackle unemployment and accelerate social and economic development.
Therefore, in order to maintain fiscal sustainability, Cabinet set a target to limit the Public Sector Wage Bill to no more than 35 percent of domestic revenues over the medium term.
To achieve this, the government plans to implement targeted recruitment and leverage existing personnel to address skill gaps within the public service.
Mweetwa explained that this strategy is intended to keep government spending within sustainable limits while continuing to provide essential services to citizens.
The minister also highlighted the ambitious macroeconomic objectives and fiscal policies set forth by cabinet, signaling a clear direction for the country’s economic trajectory over the medium term.
“The objectives approved by the cabinet include an impressive annual economic growth of at least 6 percent, inflation rate reduction to a single digit by 2028, increased domestic revenue of over 22 percent annually, net domestic borrowing limited to no more than 1.7 percent per year by 2028, and foreign exchange reserves of at least three months of import cover,” Mweetwa disclosed.
He stated that cabinet, in its policy review, focused extensively on the taxation regime, aiming to improve revenue collection, enhance tax administration, and promote fairness.
“On property taxation, cabinet agreed to streamline property records, enhance valuation procedures, and reduce property rates to address tax avoidance and optimize collection.”
“The decision also involved extensive consultations and engagement with stakeholders, including the community, to ensure the revised policies are well-received,” he said .
On corporate tax rates, cabinet decided to harmonise multiple rates and promote a unified and competitive structure which would attract investment, enhance equity, and ensure fairness in taxation.
Furthermore, in prioritising social welfare and safety nets, cabinet agreed to safeguard social spending and protect vulnerable groups through interventions like social cash transfers and cash-for-work programmes.
In the context of debt restructuring, cabinet ensured sufficient budget provisions over the medium term to avoid default and maintain the nation’s financial reputation.
Regarding national food security, cabinet agreed to enhance strategic food reserves to mitigate price fluctuations and assure a steady food supply over the medium term.
By Sharon Zulu
Kalemba July 15, 2025
