Zambia will aim to keep economic growth around 5% in 2027 while halving the budget deficit, which swelled this year on fuel tax cuts and higher-than-projected spending, its finance minister said on Friday.

Minister Situmbeko Musokotwane's budget speech said government will aim to reduce the fiscal deficit to not more than 3.0% of gross domestic product from 5.9% this year.

This year's deficit ballooned because of fuel tax cuts to cushion the impact of the Iran war on households and businesses, as well as spending on maize purchases for the country's food reserves.

2026 economic growth was projected at 5.3% last month.

Zambia emerged from a prolonged debt crisis after becoming Africa's first Covid-era sovereign default in 2020.

In October it secured staff-level backing from the International Monetary Fund for a new $1.5-billion programme.

Musokotwane said Zambia's copper output was projected at 930 000 metric tons this year, up from roughly 890 000 tons in 2025, and that there would be a stable and predictable fiscal regime for mining companies.

Zambia aims to more than triple copper output to 3-million tons by 2031.