LUSAKA (The Business Telegraph):- Cabinet in Africa’s copper producer Zambia on the 21 September approved an Economic Recovery Plan – ERP starting 2021 which will set the tone for the Medium Term Expenditure Framework replacing them Economic Growth Stabilization Program – EGSP of 2017-2019.
Cabinet also approved the 2021 budget to be presented by the Minister of Finance on Friday 25 September.
The Zambian authorities will seek to restore the budget; enhance domestic resource mobilization; improving economic and fiscal governance, ensure greater economic stability, growth and job creation; and scale up social protection programs, the memo carried.
Zambia’s 2021 budget has key stakeholders seeking to gauge how the copper producer will navigate the disease pandemic stormy waters to claw back eroded growth while maintaining fiscal discipline as the Southern African nation seeks a Rapid Credit Facility – RCF and is also in talks for economic bailout with the Washington based lender. Growth forecast for Zambia is expected in the negatives at 4.2% as COVID continues to weigh business fabric.
The red metal producer has less than a year exactly to the polls which is believed to be an expenditure driver which weights fiscal consolidation efforts that multilaterals are closely watching for. The private sector will seek for clues on growth opportunity to recoup growth while citizens will be keen on knowing how the budget will better their lives as the cost of living has widened significantly. Notwithstanding all the stimulus efforts, Zambia will still have to set aside resources to fund its debt obligations as it simultaneously awaits any progress on Lazard’s liability restructure exercise.
President Lungu in his parliamentary opening address assured the nation that the country would be on a growth rebound in 2021.
The Kwacha Arbitrageur.