ZAMBIA: THE CASE OF AN ILLUSIVE ECONOMIC RECOVERY FORMULA
Zambia’s economy was ranked among the ten fastest growing economies in the world and among the first four in Sub Saharan Africa in very recent times. Zambia’s economic growth has now plunged to its lowest point in over a decade now staggering around 3% from a previous average growth rate of 6.9%. Zambia’s international reserves, have substantially declined from US$3.9 billion in July 2015 to US$2.3 billion at present. The much-needed foreign exchange is flowing out of the country. Zambia is importing far more than it is exporting. Government blames the loss of foreign exchange on existing commitments, particularly those relating to subsidies on fuel that have an external component. The government has since moved swiftly to increase the fuel pump price by a staggering 38% leaving market players in shock and civil society warming that the move will adversely hurt the poor. Zambia’s new Minister of Finance Felix Mutati recently attempted to outline an economic recovery plan, which ...