Zambia is banking on its mining sector to drive economic recovery, following a severe slowdown in development this year due to the worst drought in recorded history. According to Zambia's finance minister, Situmbeko Musokotwane, the Southern African country is pinning its economic recovery on its mining industry, with new mines set to launch soon and older mines receiving investments to increase output.

The finance minister expressed optimism about the sector's prospects, stating that "if all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward." This optimism is supported by data from the Zambian government, which shows that copper production increased from 698,000 tons in 2023 to over 770,000 tons last year. The country hopes to increase copper production to around 1 million tons next year and eventually to 3 million tons.

The government's decision to focus on the mining sector comes as the country faces a significant economic slowdown due to the drought's impacts. The government has lowered its 2024 growth projection from 2.3% to 1.2%, according to a presentation given by the finance ministry. Despite this, government officials are hopeful that 2025's economic growth would reach 6.6%.

Zambia is still working towards targeting a budget deficit of 3.1% of GDP this year, which is greater than the most recent estimate of last year's deficit, currently 2.7% of GDP. The country, which was the first African country to default on its sovereign debt during the COVID-19 pandemic, has accepted restructuring conditions for 90% of its foreign debt.

Zambian officials, including the secretary of the Treasury and the governor of the Central Bank, are currently in China to negotiate some of the country's outstanding debt. This move is seen as a crucial step towards addressing the country's economic challenges and paving the way for a stronger economic recovery.

The decision to focus on the mining sector is a strategic one, given the country's rich mineral resources. Zambia's mining industry has the potential to drive economic growth, create jobs, and increase revenue for the government. As the country works towards recovering from the economic slowdown, the mining sector is poised to play a critical role in Zambia's economic future.

In conclusion, Zambia's decision to pin its economic recovery hopes on the mining sector is a crucial step towards addressing the country's economic challenges. With increasing copper production and new investments in the sector, the country is poised to make a strong recovery in the coming years. As the country works towards achieving its economic growth targets, the mining sector is expected to play a critical role in driving Zambia's economic future.