Progress towards an IMF programme for Zambia remains slow and may be further delayed by domestic political events, Fitch Ratings says.
The rating agency says its expectation of an IMF programme is a key support to Zambia’s ‘B’/Negative sovereign rating.

The IMF’s most recent mission to Zambia, which concluded last month, resulted in the Zambian authorities agreeing with the IMF on the “remaining actions needed to reach staff-level agreement”.
A request to the IMF Executive Board could be made in August if the two sides can “reach understandings in the coming weeks”.

But the IMF’s end-of-mission statement suggests that recent progress has been slower than expected, and that there are still obstacles to reaching a deal.
It noted continuing revenue shortfalls and the possible emergence of new arrears, and highlighted the need for improved fiscal discipline.
In May, Finance Minister Felix Mutati said a deal for as much as USD1.6 billion would be concluded by the end of June.

Domestic political pressures could distract the authorities’ focus from the economy.
On 12 July, the Zambian Parliament approved the “enhanced security measures” that President Edgar Lungu instituted earlier in the month after a fire destroyed the country’s biggest market.
Tensions have been increasing since the main opposition leader Hakainde Hichilema was arrested and charged with treason in April, for supposedly obstructing President Lungu’s motorcade.
The opposition’s legislators boycotted the vote on the security measures.
Mr. Hichilema lost the August 2016 presidential election to Lungu, but claims that the result was fraudulent.

It said political stability has been a rating strength for Zambia, which has experienced less political violence or election-related instability than many ‘B’ and ‘BB’ category sovereigns.
Fitch Ratings said the key rating drivers continue to be fiscal and external deficits and their effect on public sector debt and the economy’s vulnerability to shocks.
It added that the key risk stemming from domestic political tension or uncertainty would be if it escalated to a point which jeopardised the IMF’s and other lenders’ willingness to provide Zambia with external financing.
Talks with the IMF began last year after falling copper prices and large fiscal deficits had seen the kwacha fall to record lows against the dollar.
An IMF programme would help support the balance of payments, provide a policy anchor for fiscal and economic reforms, and unlock additional sources of external financing from multilateral and bilateral lenders.

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47 COMMENTS

  1. Nothing to worry here.

    Delay is NOT refusal.

    Mutati has this covered.

    I have a PhD

    Thanks

    BB2014,2016

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    • The only “PhD” that you “Mushota” have is in STUUPIDITY!

      If you are too brainless to understand what this article is saying, better just be quiet and not display your moronic ignorance in public.

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    • FITCH CAN GO AND JUMP IN LAKE KARIBA.
      WHERE WERE THEY WHEN hh WAS MISBEHAVING
      AND NOW WHEN ZAMBIA NEEDS TRUE FRIENDS WHEN hh’s ZEALOTS ARE TORCHING INFRASTRUCTURE THEY ISSUE SARCASTIC COMMMENTS ON OUR ECONOMY.
      LAST TIME I CHECKED THE KWACHA WAS GETTING STRONGER AGAINST THE DOLLAR WITHOUT THE IMF SO-CALLED ASSISTANCE.

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    • NO 1 PATRIOT —– Yeah, right! I’m sure you are a better economist than IMF and Fitch experts combined. They don’t care how much you hate HH or love ECL….they are telling you the truth about YOUR economy. Kwacha strengthening is nothing if your GDP is shrinking and your arrears on loan repayments are growing. By the way, you are even saying the last time you checked the Kwacha was getting stronger….don’t make me laugh, Kwacha getting stronger against WHICH CURRENCY??? Isn’t it against the US DOLLAR – which is THEIR currency, and they know their currency better!!! Think before you open your mouth.

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    • We all love Zambia and call for smart decisions. Herein is my consistent Personal opinion as a Zambian patriot, Ba Mutati “we don’t need these highly toxic IMF loans to unlock our economic fate” now or tomorrow unless IMF changes in a Greater deal. Their loans are toxic waste to the core in design and enforcement anywhere in LDCs. They come with zero intrinsic value for LDCs and expecting economic turn around is a dangerous fallacy. Appreciate that the spirit is to economically subjudicate us to perennial beggars. IMF only promotes a momentum of ravaging LDCs economies Period. Obsession for these toxic waste in loans must stop.

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    • IMF loans will adversely choke our economy. We don’t need toxic debts with almost all national assets already in debt stocks and lost economic leverage. National development is not contigent on subscribing to the IMF. Let’s build internal capacity. We have assets of national peace, natural resources and human capital of a highly educated population with quality earned from industrialized educational systems. To all these, we’re strategically located to regional markets. What is the matter mama Zambia?

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  2. But somebody who resides along Independence av mentioned that they can hang these Imperialists!

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    • “since the main opposition leader Hakainde Hichilema was arrested and charged with treason in April, for supposedly obstructing President Lungu’s motorcade.” Interesting, but noted.

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  3. we don’t need the deal. we can manage by tightening our belts. lets not be lazy that we have to borrow every time. Toll fees will help us survive.

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    • Double electricity and food maybe we will cut down trees for malasha and use GMOs for more food…

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    • Toll gates you say …do even know what a toll road is? Its an alternative shortcut…you are paying road tax and then some roads are blocked by these things esentially you are paying twice.
      Tighten your belts when already you have decided to blow $40m on State House and New City Market. I wonder how much rent will be in a market costing $20m.

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  4. more delay until the petition is heard and HH is released from the prison otherwise the funds will be used to persecute the opposition and for enjoying Jameson at state house…lol

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  5. I hope soon our leaders will soon realise that we can take help from outside, especially money, without becoming the dogs to the foreginers. Its ok to work with them, yes we need to be fair but we need to keep their investments here if we are to save our beautiful country that our good and mercyful God gave to us. Please Mr.President, keep the foreigners happy so we keep their tax dollars.

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  6. The Evil Malawian Moslem Dictator said IMF can hang. Just bcoz copper prices have gone up & the Chinese have promised to pump in $8-Billion.

    But we all know Chinese investment is like a loud FART. The road contracts will be given to Chinese companies & the equipt will be imported from China.

    Then the quarries supplying crushed stone & other materials will be Chinese owned.

    They then import Chinese prisoners as labourers in containers.

    The money does not even touch Zambian bank accounts.

    No benefit to the country except for poor quality roads & a HUUUUUGE DEBT & an influx of millions of tu ma Choncho-lee illegal immigrants.

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    • It has really pained you UPND zealots that Zambia will not kneel down to IMF… Zambia will be developed by Zambians and not zealots like you…

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    • @Zakeyo Going to IMF is an admission of failure by PF to develop.

      Even after sinking the country into an external debt of $17 Billion, they’ve failed to fix the economy. You think they can fix the economy with $1.6 Billion they are begging from IMF? We haven’t even touched Govt Internal Debt.

      Things are bad in the country. The Evil Malawian Moslem Dictator does not hear the cries of the masses. The problems caused by PF failures is causing loss of lives at hospitals, less food, illiteracy, more dunderheads like you as all revenue is being diverted to debt servicing. Eurobond will soon mature & BoZ has no capacity to honour payments.

      Something for you to…

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  7. Why does IMF want to impose itself on Zambia when the President has already told them that if they want they can keep their money…why should IMF issue this empty statement which by the way is not solicitated by the Zambian Government…

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    • Then why is Mutati arse licking in western capitals? Instead of crapping, learn to use chopsticks as new colonial power will “help” with finances to pay Chinese contractors

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  8. It’s not free money. My sherlock lends me money whether I’ve been fighting with my or not. It’s not free money.

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  9. The fact is that IMF needs Zambia more than Zambia needs IMF. We can do without them, but they can’t do without Africa and the developing World because they make money by lending it out.

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    • @ LOMBE (MA) — Really? Remember IMF didn’t come to Zambia, it is Zambia that went to IMF – to beg. On the bigger scheme of things, IMF DOESN’T NEED ZAMBIA. Zambia is such a tiny economy they don’t need it. There are countries where IMF makes money from, not Zambia. You can’t even mend your tar roads without borrowing and you think IMF cares! It is Felix Mutati and team at Ministry of Finance who went to Washington and arse-licked so hard until IMF liked it and promised to come to Zambia. You dunderheads in Zambia should realize that. It worries to see so many low-IQ people we have in Zambia, there are cretins all over the country saying things that even a monkey would think twice about before opening its mouth.

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    • You know their denial could be a blessing in disguise. It can make more innovative on how to generate resources within.

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    • @Ndanje Khakis,
      Really?
      As @Judge Masipha rightly put “worries to see so many low-IQ people we have in Zambia, there are cretins all over the country saying things that even a monkey would think twice about before opening its mouth.”

      With such scenario, I doubt any innovation, may innovation in finding best way to steal or bribe.

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    • @Kanene , IQ level depends on where you stand eg if Kakoma talks trash the Upnd will say he has 140 IQ level and PF will see the opposite. Mr high IQ please can you tell us why China which runs an oppressive system is so successful and why a dictator like Kagame is a darling of Washington? Thanks Gen high IQ.

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  10. Zambia needs IMF more than IMF needs Zambia. It is unthinkable for the IMF Board to approve a Loan to Zambia without completing a Debt Sustainability Due Diligence, with SOE still in place and HH and 5 co-accused in Jail. The IMF Loan is for Budgetary and BOP support. There is no way to IMF will finance the continued persecution of HH in Jail on fake Treason Charges. No IMF Loan,new Loans and grants from the West to Zambia until Rule of Law returns to Zambia and HH is freed from Jail unconditionally and unharmed.

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  11. The REAL message is “IMF further delay due to Zambia’s recent domestic political events”.
    In other ways there are vexing matters to be considered in tandem with democracy and transparency before Zambia can merit IMF aid. At the moment Zambia does not earn that merit to qualify for aid. PF government has to demonstrate meeting these conditions.

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  12. UPNDonkeys dont hide their desire to see misfortune fall on Zambia, in fact they actively sponsor such acts. And the voters are looking and making decisions for 2021. And in 2021 tye Donkeys will be back in the Constitutional Court with a petition not “knowing” what hit them. In 2021 they will also sue the voters for not choosing them…..
    .kikikikikikikiki….

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    • Very sad,wherever Sata found pipo who think like this PF.In almost all the posts of this f00l called “Terrible” what comes out is unbelievable childishness and immaturity.You will probably discover that this is a senior PF official given the passion and consistency of the posts,but go through what the man writes and you get worried.Sata was not fair to this nation he should have left politics to pipo who have the acumen to provide leadership and who are surrounded by similar persons.Not these goons who think they can rule using threats,intimidation and divide and rule tactics whilst openly celebrating caging innocent pipo on trumped up charges.At the rate we are going what is gonna happen if the prisons fill up?

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  13. Lungu Does Not Understand Diplomacy, And He And His Pf Empty Tins Thinks That The Temporal Increase In Copper Prices And Gaining Of Kwacha Against The Dollar To Below K9 Means The Country Is Already Stable And Rich.

    Remember People Voted For That Man To Fix The Economy Not To Take Zambia Back To Colonial Days(50years Backwards).
    Remember 2022 Euro Bond Will Take Its Power.

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  14. Delinquent PF government…. Isn’t it a disgrace if the bank manager (IMF) asks you to change your lifestyle before you can get a small advance loan.

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  15. At a state House press conference two weeks ago, Some drunk was yelling at the IMF because he already knew he wasn’t getting a dime from them.

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  16. Your mission is to get to plot 1 at any cost. You’ll have more heartaches than consolations.

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  17. I recall telling these tins in PF that arresting that man on trumped up charges was counter productive for them but they were unable to see the bigger picture!!

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  18. The PF supporters and embarrassingly GRZ thought IMF money is given even without looking at governance issues among other things. They look at the dictator sisi of eygpt and MU7 and thought the IMF will give zambia as well with the political procecussions going on….

    What they fail to understand is Zambia is of no strategic importance to the west, we are infact just leeches on their forigne aid.
    The only hold Mr Lungus GRZ thought they had on the west is that US embassy. They don’t give a monkies about that.

    The only way to raise funds is more taxes , food hikes or stop political procecussions..

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  19. Government can easily raise the money they are asking for locally. What happened to the fight against corruption and those known corrupt Ministers? How much are they worth now and where are the details Mr. President? How can we, as nation save if we cut down your travelling?

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    • Where can you raise $1.6Billion in 2 months…you simply yap like you are in a tavern drinking chibuku. You have failed to tax and remove subsidies for the mines.

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  20. Technology has moved on, video calls etc. An ideal opportunity to talk to some of these leaders instead of physically meeting. In today’s world, leaders only meet if necessary.

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  21. Doomsday prophets. ..you wished the crop to fail, the kwacha to continue tumbling. These didn’t happen still you had explanations and excuses as to why this didn’t happen. Your time to rule will come in due course not by force of your timetable.

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  22. WE JUST HAVE TO HUMBLE OUR SELVES AND LISTEN TO THERE ADVISE OR ELSE WINA AZAFA NANJALA.WE NEED THERE HELP.THE MAJORITY OF ZAMBIANS ARE WAROWING IN MISERY AND YOU SO CALLED SENIOR CITIZEN YOU SAY WE DONT NEED HELP.ARE YOU A ZAMBIAN?JUST ADVISE YOUR PARTY PF TO LISTEN TO THE TERMS OF IMF.I BELIEVE ONE OF THEIR TERMS IS TO UPHOLD THE RULE OF LAW AND ACCEPT DIVERGENT VIEWS.

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  23. The solution for developing countries in Africa and Asia is for Brazil, Russia, India, China and South Africa to fast track the consolidation of the “BRICS” financial institution to counteract the exploitative and toxic games being pursued by the IMF. The worst for developing states is to kill their agricultural potential. If we can produce adequate food to feed our people, then lesser amounts of loans can be directed at developing vital industrial infrastructures.

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  24. Maybe people should stop pretending that all is well in the house of pf and their jungle policies and rants. Why are you supporting a bunch of corrupt beings who are leading you to absolute poverty? Do they put food at your dinner table or what? We all know that deep down they are so desperate for that handout from IMF which they will share amongst themselves before they are booted out !!! The supporters don’t get a penny!!

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    • “…Why are you supporting a bunch of corrupt beings who are leading you to absolute poverty?…”

      They rule by violence.

      In a free democracy where candidates are free to campain allowing citizens informed and free voting, there is no way PF can win.

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