In an economic state of nation address on 12 February, Zambia’s Minster of Finance Honorable Dr. Bwalya Ng’andu announced the external debt stock as $11.2billion as at December compared with $10.23billion for July 2019. This increase was attributed to increased disbursements in infrastructure projects. The red metal producers external debt level grew $1.15billion in 2019 from levels of $10.05billion at end of the year 2018.
The former central banker also reported the preliminary fiscal deficit number for 2019 at 8.2% on a cash basis exceeding the targeted 6.5% in its earlier projections. This, Dr. Ng’andu attributes to risks to economic growth that materialized raging from climate change effects on power and external debt service pressures.
Zambia targets to reign in on the fiscal deficit to 5.5% for 2020 with cognizance of the uncertainty around the economic environment.
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