Home » Zambia’s Budget Faces Cuts as Drought Looms Over Food Security

Zambia’s Budget Faces Cuts as Drought Looms Over Food Security

How the government plans to cope with the dry spell and its impact on the economy

by Motoni Olodun

Zambia, one of Africa’s largest copper producers, is facing a severe drought that could threaten its food production and economic stability. The government has announced plans to adjust its national budget to ensure adequate food supplies for its citizens and mitigate the impact of the dry spell on its hydropower generation.

The southern African nation has experienced below-average rainfall in more than half of its 10 provinces, affecting crop yields and water levels in dams that supply most of its electricity. President Hakainde Hichilema said the Food Reserve Agency, a state-owned entity, is prepared to purchase all crops that are produced in the country to ensure food security.

“We are going to adjust the budget to respond to this drought situation,” Hichilema said at a meeting with church leaders in the capital, Lusaka, on Thursday. “We have to make sure that our people have food on the table.”

Zambia is not the only country in the region facing a drought crisis. According to the United Nations, more than 45 million people in southern Africa need urgent food assistance due to poor harvests, rising food prices, and the effects of the COVID-19 pandemic. The World Food Programme has warned that the situation could worsen in the coming months as the lean season approaches.

The drought also poses a risk to Zambia’s energy sector, which relies heavily on hydropower for its electricity needs. The country has suffered from frequent power outages in recent years due to low water levels in the Kariba Dam, which it shares with neighboring Zimbabwe. Hichilema said the government is working on diversifying its energy sources to include solar, wind, and gas.

“We have to move away from depending on rain-fed electricity generation because climate change is real,” he said. “We have to invest in alternative sources of energy that are cheaper, cleaner, and more reliable.”

Hichilema, who took office in August last year after defeating former president Edgar Lungu in a landslide election, has vowed to revive Zambia’s ailing economy, which contracted by 1.9% in 2023 and defaulted on its external debt payments. He has pledged to restore fiscal discipline, curb corruption, and renegotiate the country’s debt with its creditors, including China.

Zambia’s drought situation adds to the challenges facing Hichilema’s administration but also offers an opportunity to implement reforms that could boost the country’s resilience and growth prospects. The government has said it will prioritize agriculture, tourism, and mining as key sectors for economic diversification and job creation.

Zambia has a population of about 18 million people, of whom more than half live in rural areas and depend on agriculture for their livelihoods. The country is also endowed with abundant natural resources, including copper, cobalt, gold, and emeralds. Hichilema said his government is committed to ensuring that the benefits of these resources are shared by all Zambians.

“We have a vision of a united, prosperous and equitable Zambia,” he said. “We are confident that with God’s guidance and your support, we will overcome the challenges we face and achieve our goals.”

Source: Bloomberg

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