Economic analyst Kelvin Chisanga explores the intricacies and implications of Zambia’s economic progress, marked by the recent approval of the second phase of financing amounting to $187 million by the International Monetary Fund (IMF) under the 38-month Extended Credit Facility (ECF) Arrangement.
Despite facing various challenges, Zambia’s economic landscape is evolving, and Mr. Chisanga sheds light on the factors contributing to this transformation.
He acknowledges the multitude of headwinds that Zambia has faced throughout the year, ranging from global market fluctuations to regional conflicts and internal challenges such as cost pressures on key commodities.
Notably, the growth observed in Zambia’s GDP profile for the current year is attributed to the non-mining and non-agriculture sectors, showcasing resilience in the face of various adversities.
Despite challenges, sectors such as tourism, manufacturing, transport, and ICT are contributing positively to Zambia’s economic landscape. However, there is a noticeable lack of significant support on the export side, emphasizing the need for diversified economic strategies.
Addressing the debt situation, he highlights the role of the IMF as a crucial stabilizing factor. The recent approval of $187 million is part of a larger financial package totaling $1.3 billion over 38 months. This commitment by stakeholders aligns with Zambia’s efforts to stabilize the economy and undergo critical reforms in social protection.
Mr. Chisanga emphasizes Zambia’s dedication to economic recovery, citing tight fiscal plans, fair debt treatment strategies, a robust monetary policy, and a focus on social sectors as key pillars for achieving economic stability and fostering inclusive growth.
Despite recurrent external shocks, Zambia’s economic resilience is evident, with a projected growth rate of 4.3% for the current year and an optimistic estimate of 4.7% in 2024.
In conclusion, Mr. Chisanga asserts that Zambia’s commitment to policy measures aimed at economic recovery and stability, coupled with prudent financial planning, will play a pivotal role in championing inclusive growth and ensuring a firm economic foundation for the future.