The Zambian government has expressed optimism about an impending economic rebound, attributing the current economic slowdown to temporary factors. Minister of Finance and National Planning, Situmbeko Musokotwane, conveyed this positive outlook during a meeting hosted by the Zambia Association of Manufacturers on Wednesday.
Musokotwane emphasised that the Zambian economy is poised for recovery due to expansions and increasing investments across various sectors, particularly the mining industry. Despite this confidence, he noted that the economic growth forecast for this year has been revised downwards to 2.7 percent from an earlier projection of 4.7 percent. This adjustment is due to several challenges, including unstable foreign exchange rates and a drought exacerbated by climate change.
The government is actively implementing strategic measures to restore macroeconomic stability, enhance economic efficiency, and foster private sector-led growth through increased investments. “I wish to reiterate the government’s unwavering commitment to supporting and collaborating with the private sector. Your growth and ability to capitalise on upcoming investment opportunities are cardinal to Zambia’s prosperity,” Musokotwane stated.
A key aspect of the government’s plan involves concluding the debt restructuring process by the end of this year. Musokotwane confirmed that bondholders have agreed to extend the debt repayment period, and discussions with commercial creditors are ongoing.
During the same meeting, Ashu Sagar, President of the Zambia Association of Manufacturers, called on the government to address specific issues hindering the growth of the manufacturing sector. He highlighted the need for timely remittance of value-added tax refunds and a reconsideration of the manufacturing corporate tax rate, which currently stands at 30 percent.
The government remains confident that these initiatives and collaborations will stimulate economic growth and ensure Zambia’s economic resilience and prosperity in the near future.
