Zambia rising
The land-locked nation has a plan to boost growth and confidence in its commodity-dependent economy to counter the knock it took in 2016
After a year of worrying economic decline, the Zambian government hopes to kick-start 2017 with a recovery plan to stabilise its fragile economy. Its K64.5bn (US$6.43bn) budget for 2017 spells out what is being called "Zambia Plus" — a plan to restore economic stability and "ensure sustained and inclusive growth". In 2016 the country was hit hard by weak commodity prices — particularly of copper, Zambia’s biggest export — as well as electricity shortages, high inflation and government’s failure to fully finance its spending commitments. As a result, Zambia’s debt soared. External debt is now valued at $6.7bn, or 35% of GDP, while domestic debt in the form of government securities was worth 12% of GDP by September. Finance minister Felix Mutati says: "We are walking a tightrope. We therefore have the responsibility to ensure debt sustainability. We must not burden the next generation." Years of fuel and electricity subsidies have also put pressure on the country’s fiscus. Insufficien...
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