Zambia’s economy is looking bright after the recent IMF visit to the country to further discussions on the 2017 Article IV consultation. The country has grown in foreign investors towards Zambia’s government securities market and also a good climatic condition – marked by moderate rainfall to support the agricultural sector. The country has also requested for an IMF-Supported program. According to the IMF team, the Zambian economy has witnessed a positive growth which could possibly allow the country to be supported by IMF’s Extended Credit Facility (ECF). The ECF provides financial assistance to countries with protracted balance of payments problems. As it stands now, the IMF seeks to reach more understanding of the country and based on that grant Zambia’s ECF request.
In a statement by Tsidi Tsikata, who led the IMF team, he mentioned that weaknesses in the management of public finances and public investment in Zambia pose significant risks to the 2017 budget objectives of “restoring fiscal fitness for sustained inclusive growth and development.” He continued to say that a bumper harvest and increased hydroelectricity generation are expected to promote economic activity than expected. IMF also made predictions on Zambia’s real GDP growth and inflation rate. IMF predicts a 4 per cent growth in real GDP in 2017 and also expects inflation rate to remain a single digit regardless of increasing electricity charges.