Minister of Finance Felix Mutati says the improving complementarity of foreign and domestic capital flows into Zambia is a demonstration that the all-inclusive economic stabilisation and growth measures which the government is undertaking are bearing fruit.
“The recent participation of a huge number of foreign investors on the local bond market whereby US$ 52 million was raised in a single day is testimony to the rising confidence of the global community in the measures taken by the Zambian Government to stabilize and grow the economy in an inclusive manner,” he said.
The Minister said a key target is to implement structural reforms and release resources locked in subsidies “in order to restore fiscal fitness and attain macro-economic stability through implementation of economic diversification programs in the agriculture and infrastructure sectors among others.”
“In tax administration, we are going beyond enforcement and compliance by offering amnesty and addressing structural issues in order to create efficiency in domestic resource mobilisation,” said Mr. Mutati.
The Minister was speaking in Livingstone today when he officially opened the IMF organized High-Level Conference on Managing Capital Flows in Developing Economies.
He said government is also looking at legislative reviews to enforce fiscal discipline and establish a fiscal policy environment that is consonant and supportive of monetary policy.
“This action will help us to move in the right direction and facilitate injection of cost-manageable liquidity in the economy so as to accelerate private sector growth and make Zambian businesses more resilient and competitive in the grand scheme of the global economic landscape,” said Mr. Mutati.
And speaking at the one day conference at Avani Hotel in Livingstone, IMF Deputy Managing Director David Lipton has said the global economy is at a challenging time.
He also stated that, “hosting the conference in Zambia is a great opportunity to exchange experiences among developing economies with regard to raising and dealing with capital flows.”
Meanwhile IMF Deputy Director for Research Jonathan Ostry has said the current lean times of the global economy are offering an opportunity to developing economies to test the robustness of their policies.
He added that, “delegates to the High-Level Conference on Managing Capital Flows in Developing Economies have an opportunity to engage in peer learning from IMF member countries and the speakers who have been drawn from a wide spectrum of competencies across globe.”
“As an outcome of our engagement, we will take advantage and offer specialized advice based on the circumstances of each country,” he said.
Contributing to the topic for the day, Mr. Mutati reiterated that Zambia had developed a home-grown economic stabilisation and growth programme which will be implemented in partnership with the IMF and other development partners.
‘We are glad that Zambia has become a point of focus for the international financial and monetary community due to the positive demonstration effect which the active participation of country has had in international events such as the recently held IMF/World Bank Spring Meetings,” the Minister stated, he also added that, “this event is a confirmation that Zambia has not only become the preferred destination for corporate tourism, but also a point of positive demonstration for the international financial and monetary community.”
This is contained in a statement signed by the ministry of finance Public Relations Officer Chileshe Kandeta, this evening.