On Tuesday, Zambia’s Finance Minister, Situmbeko Musokotwane, disclosed that the country will lose approximately $200 million in revenue following the suspension of selected fuel taxes aimed at easing the burden on households and businesses.
The measures, introduced last month and effective for three months from April 1, include the zero-rating of Value Added Tax and the suspension of excise duties on petrol and diesel imports. These interventions are designed to cushion the impact of rising global energy prices linked to the ongoing conflict in the Middle East.
Speaking at the International Monetary Fund–World Bank Spring Meetings in Washington, Musokotwane cautioned that an energy crisis poses a significant risk to African economies over the next 12 months. He noted that the conflict could heighten inflationary pressures, increase production costs, and further strain already fragile fiscal positions across the continent.
While acknowledging the importance of international support, the minister emphasized the need for domestic reforms to enhance economic resilience and improve public expenditure efficiency. Zambia remains among the African countries most affected by escalating global energy costs.