Zambia’s Economy Turns a Corner: Inflation Hits Two-Year Low”

In August 2025, Zambia achieved a significant economic milestone, reporting its lowest annual inflation rate in over two years at 12.6%, down from July’s 13%. Both food and non-food inflation eased, with food prices dropping to 14.9% from 15.3%, and non-food inflation slipping to 9.3% from 9.7%, marking a welcome reprieve for consumers coping with rising costs.

Key drivers behind this improvement include a stronger Zambian kwacha and elevated copper prices, which are easing price pressures and stabilizing the economy . In fact, Zambia’s economy is projected to expand by at least 6% in 2025, its strongest growth since 2021, fueled by surging copper output and a rebound in rainfall that’s boosting both mining and agriculture.

Looking ahead, the Bank of Zambia aims to bring inflation within its 6–8% target range by early 2026, with an expected average of around 13.3% for 2025 . Meanwhile, the country’s economic outlook continues to brighten: growth is expected to accelerate to 6.4% in 2026, backed by investments in copper production and efforts to diversify energy sources,  especially solar, to bolster resilience against drought-related hydropower challenges

Ethiopia & Dangote Strike Deal: $2.5B Fertiliser Plant to Power Food Security

Ethiopia has inked a major deal with Nigeria’s Dangote Group to build a massive $2.5 billion fertiliser plant in Gode, its first of such scale. With Ethiopian Investment Holdings taking a 40% stake and Dangote controlling 60%, the partnership signals a bold move toward agricultural independence.

The Gode facility will produce 3 million metric tons of fertiliser annually, making it one of the world’s largest single-site urea production complexes. This will dramatically reduce Ethiopia’s reliance on expensive imports and ensure reliable fertilizer supply for farmers.

The plant, strategically located near the Ethiopia–Djibouti corridor, will streamline logistics for raw materials and exports. Dangote calls it a “shared vision to industrialise Africa and achieve food security”, a move aligned with Ethiopia’s ambitions to modernize agriculture and anchor industrial growth in underserved regions. Hashtags:

#Ethiopia #Dangote #Fertiliser #FoodSecurity #Agriculture #AfricaIndustrialization

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