ActionAid Zambia says it agrees with some stakeholders that Zambia’s economy is likely to grow at a slower pace next year.
The International Monetary Fund has projected that Zambia’s economic growth will fall to 2.9 percent next year from the 3.1 targeted for this year.
In its annual World Economic Report released on Tuesday at the just ended Springs Meeting in Washington D.C, the Fund also see higher inflation above 10 percent by end of 2019.
The Fund projects that inflation will jump to 12.0 percent in 2020 after closing at 10.7 this year.
ActionAid Zambia Country Director Nalucha Ziba tells Money FM News that one of the challenge that will contribute to a slower economic growth is the dry spells that the country has witnessed in some parts of the country.
Ms Ziba says this will ultimately affect production in the agriculture sector and subsequently affect forex earnings.
She said another challenge worth looking at is the increased debt service payment.
The ActionAid Country Director said the country has also witnessed late payments to contractors who supplied various services as well as late payment of salaries.