Economy

IMF Says Impact Of COVID-19 On Zambia’s Economy Will Be Heavy

The International Monetary Fund (IMF) staff team has held virtual meetings to discuss the Government of Zambia’s request for emergency support under the Rapid Credit Facility.

The IMF staff team was led by Dhaneshwar Ghura during the virtual meeting from June 22 to July 10.

The discussions covered the authorities’ response to the COVID-19 pandemic, recent economic developments, the economic outlook and policies for 2020 and the medium-term.

“The social and macroeconomic impact of the COVID-19 shock, on top of a severe drought last year, will be heavy. Growth is forecast at around ‑5 percent in 2020, substantially lower than envisaged at the beginning of the year, and the number of people living in extreme poverty is expected to increase. Fiscal pressures in 2020 have increased due to significantly lower revenue collections and higher spending needs. Zambia has requested support under the G20 Debt Service Standstill Initiative, which would provide temporary fiscal space this year,” Ghura said in a statement issued at the end of IMF virtual consultative meeting with Zambia.

“Discussions covered both near- and medium-term policies to address these challenges and the underlying macroeconomic vulnerabilities, including the main elements of the revised 2020 Budget with a focus on spending for the COVID-19 health, social and economic response. Discussions will continue as the authorities determine their policies and priorities in the formulation of the revised 2020 Budget, as well as the medium-term fiscal stance needed to restore debt sustainability, revive growth and lower poverty.”

The IMF has thanked the Zambian authorities for the constructive discussion.

“Staff express their gratitude to the Zambian authorities for the constructive discussions that were held and look forward to continuing discussions,” the IMF stated.

IMF staff held meetings with Finance Minister Bwalya Ng’andu, Bank of Zambia Governor Denny Kalyalya, senior Government and Bank of Zambia officials and the private sector.

5 Comments

  1. Razor

    No money still from IMF until you convince them that you will not steal.

    • Kwezawo

      There is money in Zambia. We are rich in many resources including hard working and entrepreneurial skills.

  2. Dorfrlyn Sojin

    e you proven that you will not steal the money? The whole world knows how Zambian government misuse funds. Do you have the capacity to pay it back it’s our burden as tax payers?

  3. Kay Lee

    If our Fathers/Our Leaders could have some sympathy to some degree “awe sure” we would not be degraded in this way as Humans and being unproudly Zambian.The IMF believes any help rendered as in debt form would ease the pains of hardship we citizens are going through but at the sametime they are certain that the halnding of the financies by our Leaders has zero guarantee of reaching the intended reciepients.THEFT is a norm around here…sad.POLICIES are DICTATES and RULES from the IMF on how Our Govt of Zambia should TAX our Asses until we PAY BACK the very last dime they STOLE themselves.Slavery goes on.MASTER -SLAVE scenario.Bible> “A borrower is a slave to a lender and he who recieves is a slave to the one who gives”. Let’s set ourselves free by NOT borrowing at all! If we can…PLEASE BA BOMA! STOP STEALING! We are HUNGRY AND ANGRY PEOPLE AT THE SAME TIME. Oh God!

  4. James

    Do unto other’s as you want others to do unto you,
    People can talk, people can cry…
    But as Zambian men,women,boys and girls…
    We all have a role to play, one may be dependant on the other but the other always need’s one…
    To set all matter’s straight , where would anyone be without God… The true God
    His name is Jehovah by the way.
    My name is James and my only please is that people who have money, grow up and learn how to use it not mis-use it.

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