Why Zambia’s Economic Freedom Depends on Health and Digital Connectivity – African Business Innovation

By Mainza Katongo

Zambia boasts roughly $4.5 billion in foreign reserves, a figure often cited by policymakers as evidence of growing economic stability [1]. Yet for many ordinary citizens, the idea of “economic freedom” still feels distant — something discussed in speeches and policy debates in Lusaka, but rarely experienced in everyday life.

A nation, however, is only as strong as the well-being of its people. While Zambia has taken steps to decentralize development through the Constituency Development Fund (CDF) — increasing allocations to K40 million per constituency [2] — the promise of local empowerment means little if citizens cannot fully participate in the economy because of poor health services or limited access to digital tools. Economic freedom without these foundations risks becoming an empty slogan.

At its core, Zambia’s future prosperity rests on a simple truth: without a healthy and digitally connected workforce, the ability to innovate and compete in a modern economy remains limited.

Progress and the Opportunity of the “Intelligent Age”

Zambia has achieved important milestones in recent years. The expansion of the CDF has aimed to give local communities more control over development priorities. The country has also taken steps to improve energy capacity through new solar projects while expanding access to free education, a policy designed to improve opportunities for young people.

These achievements represent an important foundation for long-term economic transformation. However, translating these gains into sustainable prosperity requires more than education and infrastructure alone. It also demands stronger investment in healthcare and digital connectivity — two pillars that underpin modern productivity and innovation.

In his vision of the “Intelligent Age,” Klaus Schwab argues that societies must avoid complacency during periods of technological transformation [3]. Educating young people without ensuring their health and access to digital tools risks preparing them for stagnation rather than progress.

The Health Investment Gap

Healthcare remains one of the most critical areas requiring attention. In the 2026 national budget, Zambia allocates approximately 10.3% of public spending to healthcare, slightly lower than the 10.7% allocated in 2025 [2]. While this still represents a substantial commitment, it remains below the 15% target established by the Abuja Declaration, in which African governments committed to prioritizing healthcare investment [4].

Adequate healthcare funding is not merely a social issue — it is an economic one. A workforce struggling with untreated illnesses or limited access to medical services cannot sustain long-term productivity or innovation.

This challenge becomes particularly visible in rural areas, where healthcare facilities may exist but often face shortages of medical staff, equipment, or essential medicines. When such gaps persist, citizens may be forced to travel long distances for treatment or delay seeking care altogether.

Over time, these systemic pressures weaken both individual well-being and national economic capacity.

The Growing Threat of Antimicrobial Resistance

Another emerging concern is the rise of antimicrobial resistance (AMR), which occurs when bacteria and other pathogens evolve resistance to existing medicines.

In many communities where access to healthcare is limited, residents sometimes turn to self-medication or incomplete antibiotic treatments. While understandable, these practices can accelerate the development of drug-resistant infections.

Health experts increasingly warn that antimicrobial resistance represents a “silent pandemic” with significant economic implications [5]. Drug-resistant infections can increase healthcare costs, prolong illness, and reduce workforce productivity.

For developing economies, where healthcare systems are already under strain, the impact could be particularly severe.

Rethinking the Constituency Development Fund

One of Zambia’s most promising policy tools for addressing these challenges is the Constituency Development Fund. Originally designed to empower local communities, the CDF could also serve as a platform for investing in human capital and innovation.

A potential strategy would involve allocating a small percentage — for example, 5% — of each constituency’s CDF resources toward establishing local technology and innovation hubs.

Such hubs could provide internet connectivity, digital training, and workspace infrastructure for young entrepreneurs and students. By enabling rural communities to access global digital markets, these hubs could help ensure that education translates into real economic opportunity.

In addition, digital infrastructure could support telemedicine, allowing medical specialists in urban centers to consult with patients in remote areas. Telemedicine systems have already demonstrated their ability to expand healthcare access while reducing costs associated with travel and hospital congestion [6].

Transparency and Digital Governance

To maximize the effectiveness of CDF investments, transparency and accountability remain essential. One possible approach would involve implementing public digital dashboards that track development spending at the constituency level.

Such tools would allow citizens to monitor how public funds are used and encourage more efficient allocation of resources. Greater transparency not only improves governance but also builds trust between communities and public institutions.

In a rapidly digitizing world, digital governance systems can play a crucial role in ensuring that development funds reach their intended beneficiaries.

Empowering the Next Generation

Finally, closing the digital divide must remain a priority, particularly for students in rural areas. Access to education alone is no longer sufficient in a knowledge-driven economy; students also require reliable internet access and digital devices to participate in modern learning and employment opportunities.

Providing digital connectivity to high-performing students in underserved communities could significantly expand their ability to engage with global educational platforms, remote work opportunities, and emerging technology sectors.

In practical terms, economic freedom cannot exist if a student receives a scholarship but lacks the internet access needed to use it.

Toward Genuine Economic Freedom

Zambia’s economic future will not be determined solely by foreign reserves or fiscal indicators. Instead, it will depend on the strength, health, and capabilities of its people.

By strengthening healthcare investment, addressing antimicrobial resistance, and using decentralized funding mechanisms like the CDF to expand digital infrastructure, Zambia has an opportunity to build a more inclusive and resilient economy.

Ultimately, economic freedom must be measured not only in financial statistics but in the real ability of citizens to work, innovate, and participate in the global economy.

After all, even the most ambitious development budgets mean little if the people they are meant to empower are too unwell to work or too disconnected to take part in the opportunities of the digital age.

Mainza Katongo is a research fellow at the Impact Center for Policy Research and a participant of the Policy Reform Colloquium. He is also a medical student at the Copperbelt University in Zambia.

Sources

[1] Bank of Zambia. Monetary Policy Report and Foreign Reserves Data, 2025–2026.

[2] Ministry of Finance and National Planning of Zambia. 2026 National Budget Speech and Economic Report.

[3] Klaus Schwab. The Fourth Industrial Revolution and the Intelligent Age. World Economic Forum publications.

[4] African Union. Abuja Declaration on HIV/AIDS, Tuberculosis and Other Related Infectious Diseases, 2001.

[5] World Health Organization. Global Antimicrobial Resistance and Use Surveillance System (GLASS) Report.

[6] World Health Organization. Digital Health and Telemedicine: Opportunities for Expanding Healthcare Access in Developing Countries.