Following the 12 August presidential election in which opposition leader Hakainde Hichilema defeated incumbent President Edgar Lungo, Zambia’s macroeconomic situation has become clearer thanks to progress towards strengthening relations with the IMF with a long-awaited loan agreement on a financing programme in the coming months. External liquidity has increased with the new allocation of Special Drawing Rights (SDRs) on 23 August 2021. The allocation amounts to USD 1 [...]
Zambian finances are under stress due to the important fiscal imbalance and heavy debt burden. The country asked for an IMF package aid but the lack of progress on fiscal consolidation is putting the deal at risk. Monetary tightening enabled to combat inflationary pressure and stabilize the exchange rate. Massive increases in lending to the government have been the major reason for the contraction in private sector credit across 2017 [...]
