Zambia: Selected Issues

IMF Staff Country Reports, July 13, 2023

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Zambia: Selected Issues

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Bibliographic details

• Published: July 13, 2023
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9798400249839.002

Overview

• Focus: boosting sustainable growth in Zambia.
• Key context: Zambia’s economy is highly dependent on mining and agriculture; growth has been insufficient to lift its young and growing population from poverty.
• Governance and macroeconomic stability are presented as prerequisites for sustainable growth.

Macroeconomic strategy and credibility

• The new government (came into power in 2021) adopted a growth approach that focuses first on restoring macroeconomic stability as the precondition to sustainable growth.
• Restoring macroeconomic stability and credibility is identified as the best way to attract new investment.

Debt restructuring and investment climate

• Prompt and clear resolution of the debt restructuring removes the largest obstacle to economic recovery.
• Expected effects of resolving debt restructuring:
  • Lower uncertainty for foreign and domestic investors.
  • Boost the impact of the government’s program to restore macroeconomic stability and fiscal sustainability.

Business environment, rule of law, and governance

• Rule of law and fighting corruption are highlighted as key to improving the business environment.
• Policy measures emphasized:
  • Reducing corruption.
  • Streamlining bureaucratic procedures.
  • Easing the business environment to attract investment.

Human capital and long-term growth

• The report supports a focus on education and health.
• A simulation of the impact of improved education and health indicators (because of the government’s investment in health and education) shows a significant increase in long-term growth rates.

Subject areas and keywords (as listed)

• Subject: Agricultural sector, Commercial banks, Economic sectors, Financial institutions, Financial sector policy and analysis, Financial sector stability, Health, International organization, Monetary policy, Systemic risk
• Keywords: Africa, Agricultural sector, agriculture sector, agriculture sector contribution, Commercial banks, Financial sector stability, G. agriculture policy, Global, Growth dividend, growth potential, Sub-Saharan Africa, Systemic risk

Content in this bundle

• Zambia: Selected Issues; IMF Country Report No. 23/257; June 30, 2023
  • Zambia: Selected Issues; IMF Country Report No. 23/257; June 30, 2023 (Markdown version)
  • Zambia: Selected Issues; IMF Country Report No. 23/257; June 30, 2023 (PDF)