Africa’s second largest copper producer, Zambia, is targeting to conclude a financial assistance deal with the Washington based lender, the International Monetary Fund by June. This was contained in the Ministry of Finance Heads presentation on first quarter performance of the Zambian economy.
“We have crossed the Staff Level Agreement milestone sometime last year and what we await is an IMF deal which we target a formal agreement by mid – year,” Musokotwane said in his speech. The Finance Minister highlighted the room for concessionary borrowing that the copper producer will have after a formal agreement is concluded that will help propel growth.
Zambia is currently in the labyrinth of a debt restructure and awaits an IMF deal which serves as key precursor. The red metal producer remains exposed to a myriad of economic hurdles induced by a pandemic and effects of geopolitics globally scaling energy and food prices.
In the interim, the Southern African nation has completed its 8th National Development Plan that awaits parliaments ratification and has in the pipeline private sector – government working group symposium that will allow for deeper engagement at sector level to solution for economic challenges.
DEBT CONTRACTION LEGISLATION ON THE CARDS
Musokotwane informed the audience in his presentation of some key developments such as the private public partnership and the Loans Guarantees and Authorization Act in addition to the Bank of Zambia bill which form part of reforms that will support economic reforms. The Loan Guarantees Authorization legislation will provide stronger oversight over debt contraction to keep the authorities and policy makers in check.
The Minister bemoaned the stunted growth in the mining sector over the last decade with no new mine but remains optimistic on a production ramp up to 3 million metric tons.
The Kwacha Arbitrageur