• Zambia can use this status of a lower income country to its advantage.
• It gives an opportunity to receive aid and also receive finance that can help with the debt restructuring process.
• It is also a wakeup call on the new administration not to relax on its measures to improve people’s welfare.

An Economist says Zambia’s reclassification to low income status from lower middle income for the 2023 financial year by the World Bank, gives the country an opportunity to receive aid and finance that can help with the debt restructuring process.
Speaking in an interview with Money FM News, Emmanuel Zulu noted that the country is on the right trajectory with regards to getting back on the lower middle income status as government has put in place strict financial management measures.
Mr. Zulu said every citizen has a duty to help government achieve its objectives which are meant to improve the livelihood of people.
“We are grappling with a huge debt burden and this status of a lower income country, we can use it to our advantage because it gives an opportunity for us to receive aid and also receive finance that actually help us with the debt restructuring process, and also helping the economy get back on track.”
“In 2022 we have seen positive strides with regards financial prudence and strict financial management measures that have been in put in place by the new government,” Mr. Zulu stated.
He added that it is also a wakeup call on the new administration not to relax on its measures to improve people’s welfare.
“So we expect that this will send a strong message to the government that they need to ensure that their growth objectives are achieved without fail for us to get back on the lower middle income status, but for now I think it works to our advantage.”
“We do not want to be perpetual beggars but looking at the debt burden that we have, this will give us room to receive the financial support from these countries and also receive aid that is very much needed especially with regards social support systems,” he said.
And Mr. Zulu stated although the low income status has a bearing on investment confidence in the economy, it can help the Creditors write off the country’s huge debt.
“We should not look at it with just one negative eye, of course it has a bearing on investment confidence in the economy, but on the other hand we have this huge debt that we need to get rid of and this can help the Creditors also write off our debt if we are in this status and we can also receive other support especially with donor institutions.”
“So it is a two sided coin which needs to be accepted because it reflects what is happening on the ground regarding our economy but going forward, I think we are on the right trajectory with regards to getting back on the lower middle income status,” Mr. Zulu added.
On Friday, the World Bank reclassified Zambia to low income status from lower middle income, for the 2023 financial year following the deterioration of Gross National Income per capita estimates recorded in 2021.