The Economic Association of Zambia says Zambia’s macroeconomic fundamentals remain bullish and solid despite structural issues on account of balance sheet vulnerabilities as a consequence of debt sustainability concerns.
This was disclosed during a meeting in Lusaka between the association and Standard Chartered Bank Chief Economist for Africa and Middle East Global Research – Razia Khan and UK’s Federated Investors where they were discussing the economic outlook for Zambia.
The EAZ was represented by its President Dr. Lubinda Haabazoka, National Secretary – Mutisunge Zulu, Executive Director – Mirriam Nachilima and ZIPAR Senior Research Fellow – Caesar Cheelo.
EAZ National Secretary Mutisunge Zulu has re-iterated positive economic outlook for the copper producer, giving assurance to the Federated Investors whose fund comprises of emerging market fixed income assets to include Zambia’s foreign currency denominated (Eurobonds) and kwacha assets, that Zambia will not default on its obligations whatsoever when they fall due.
Mr. Zulu says infrastructure spend has been cited as the major contributor to the current debt position which Zambia is addressing through its medium term expenditure framework (MTEF) as the Ministry of Finance seeks to restore the nation to fiscal fitness.
“Zambia has continued to be an attractive investment hub as evidenced by an influx of investment projects post successful hosting of investment expos aimed at achieving the requisite visibility for opportunities,” he said.
Mr. Zulu adds that it is of the view that Zambia needs to get onto an IMF program, aligned with the nation’s economic stabilisation and growth initiatives which would then boost both local and foreign investor confidence.
“The first ever economic summit will be held in Livingstone mid-year of 2019 at which various economists and related fields would be expected to convene to present papers that would provide solutions to the current macroeconomic challenges facing the copper producer,” he has advised.