Zambia August Elections: Investor Outlook and Policies

Zambia will hold its elections on August 13, 2026, where the vote will determine the new government in charge. Zambia August Elections, However, from the perspective of business and investors, there are many issues that they would like to see how the vote would turn out and what implications this would have on the economy.

Opinion polls show that President Hichilema is the favorite to win in the upcoming election race ahead of Brian Mundubile’s fragmented opposition. But then for the businesses and investors, the question remains how the Hichilema administration will continue the country’s macroeconomic turnaround after debt restructuring.

Expectations of a New IMF Program

Among the key issues for investors is Zambia’s next deal with the IMF.

The last US$1.7 billion IMF program, which aided Zambia in restructuring its debt after default, ended in January 2026.

Financial markets have been keeping their eyes on negotiations concerning a new program, and there are two major issues in focus:

How soon the new program could be concluded.
Whether future reforms will move away from crisis management to fostering economic growth in the long run.

It is believed that any new program by the International Monetary Fund should involve fiscal discipline as well as create preconditions for more private investments and jobs.

Copper Sector: Major Driver of the Economy

Copper continues to lead the Zambian economy, being responsible for 70% of exports and providing employment, taxes, and investments.

The following companies have expressed their intentions to expand their businesses in Zambia:

There is a goal set by the Zambian government of increasing copper production threefold during the next few years, from one million tons produced per year.

Minerals Taxation Law Under Scrutiny

Despite the statement from the government that it has no intention of revising mining tax rates, there is great attention being paid to the implementation of a new law for local content.

The law suggests increasing the portion of local goods and services used by the mining sector from 20% to 40% over the next three to four years.

The positive aspect of the bill is seen in the strengthening of the country’s industries; however, the negative aspects include:

supply chains,
financing issues for local suppliers,
costs associated with compliance with the new law,
possible delays in projects.

The way these reforms will be implemented may affect the decision of investors concerning future investment in Zambia.

Other Economic Reforms in Addition to Mining

Despite the importance of mining in the economy, there is an opinion that broader reforms are also essential for the country.

Grain Market Reform

While there is a record maize production forecast for 2026, there is a worry that the purchasing of surplus grain by the government might pose an extra financial burden on the country.

There are some calls from economists for increased private sector involvement in grain trading to lessen the fiscal burden and increase efficiency.

Zambia’s fiscal deficit is predicted to be around 5% of GDP, which will surpass the target set by the government.

Reliable Power Supply Still Important

The provision of power has become yet another issue.

The drought periods revealed the vulnerabilities of Zambia’s hydro-powered electricity system, and there has been a shortage of power and even load shedding.

Though investments in solar power are being increased, mining firms and manufacturing industries still point out the significance of reliable power for further growth.

It is assumed that power security is one of the key issues regardless of the election results.

Investors Risks

Apart from economic policy, investors are concerned about the upcoming elections as well.

Election observers draw attention to such risks as:

Vote buying.
Voter card confiscation.

Localised unrest in certain regions of the Copperbelt and northern province.

Environmental risks.

Vulnerability to drought still exists for Zambia due to Zambia’s reliance on hydro-electric power and agriculture that is dependent on rainfall. Poor rains during the next season may impact the generation of electricity, production, and the overall growth of the economy.

Conclusion – Zambia August Elections

Elections to be held in August will define the economic trajectory that Zambia will pursue in the future, as the country seeks to restore confidence of investors after going through tough times financially.

Political stability, further economic reforms, and negotiations with the IMF may put Zambia in a good place amongst Africa’s leading countries for investments, especially in the mining sector.

However, it will all come down to the implementation of policies, fiscal discipline, and infrastructure improvement.