IMF Staff Completes Virtual Mission to Zambia

IMF News, July 15, 2020

Source details

Press Release No. 20/260
Date: July 15, 2020
IMF staff team led by Dhaneshwar Ghura held virtual meetings during June 22–July 10.
Purpose: To discuss the Government of Zambia’s request for emergency support under the Rapid Credit Facility to address the social and macroeconomic impact of the COVID-19 pandemic.

Growth is forecast at around ‑5 percent in 2020.
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.
The COVID-19 shock, on top of a severe drought last year, will be heavy.
Zambia has requested support under the G20 Debt Service Standstill Initiative, which would provide temporary fiscal space this year.

Discussions focused on the economic policies needed to respond to the fallout from the COVID-19 pandemic.
Near- and medium-term policies were covered to address the COVID-19 shock and underlying macroeconomic vulnerabilities.
Discussions included 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.

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.
Staff expressed gratitude to the Zambian authorities for the constructive discussions and look forward to continuing discussions.

Source: IMF Press Release No. 20/260, July 15, 2020.