Finance and National Planning Minister Situmbeko Musokotwane has described the classification of Zambia to the lower Middle Income status country by the World Bank as a clear manifestation that government’s economic policies are materializing.
Speaking to Journalists in Lusaka this morning, Dr. Musokotwane said this classification means a reduction in donor Aid to Zambia and increased foreign investment.
Dr. Musokotwane says Zambia will now be able to access non concession loans adding that previously the country had been constrained by concession financing which is limited.
The minister has further explained that the country now lies in the range of 1,600 to 3,975 dollars per capita income adding that the target for government is to reach up to over 1,200 dollars per capita income which is for a high income status country.
And Dr. Musokotwane has said the economic reform process has not been easy for government and that this achievement is as a result of political will towards driving the country to economic prosperity.
On whether Zambia’s classification translates into poverty reduction in the country, the minister says the effects on the average household will slowly manifest adding that even in the High Income status countries, problems of the effect are there.