IMF Staff Concludes visit to Zambia

IMF News, November 20, 2019

Source details

Press Release No. 19/426
Date: November 20, 2019
An IMF staff team led by Dhaneshwar Ghura visited Lusaka during November 13–19, 2019 to discuss recent economic developments and the economic outlook for 2020 and the medium term.
End-of-Mission press releases convey preliminary findings after a visit; the views expressed are those of IMF staff and do not necessarily represent the views of the IMF’s Executive Board. This mission will not result in a Board discussion.

Macroeconomic outcomes have weakened as a difficult fiscal position combined with a severe drought.
Projected growth slowed to below 2 percent.
There is an increased risk of food insecurity.

Discussions covered both near and medium-term policy options to address the challenges, including the main elements of the draft 2020 budget being currently debated in Parliament.
In line with the 2019 Article IV consultation, IMF staff stressed the need for:
- a large, front-loaded and sustained fiscal adjustment that would help set debt on a downward path and reduce domestic arrears; and
- prioritization of spending commitments in order to meet key development priorities including supporting vulnerable populations.

The IMF staff met with:
- H.E. President Lungu
- Minister of Finance Bwalya Ng’andu
- Bank of Zambia Governor Denny Kalyalya
- other senior government and Bank of Zambia officials
- representatives of the private sector, civil society organizations, and Zambia’s development partners
The staff “wishes to express its gratitude to the Zambian authorities and the various stakeholders for the constructive spirit in which all discussions were held.”

Source: IMF Staff Concludes visit to Zambia, Press Release No. 19/426 (November 20, 2019).