Rating agency Standard and Poor’s has revised Zambia’s economic outlook from negative to stable.

It says Zambia’s improving growth prospects and greater liquidity in its banking system have prompted it to change its outlook on the country to stable from negative.

The ratings firm said in a statement that this remained hostage to the government sticking to its budget plans and to outside factors over which the Zambian government has no control – the international price of copper, and rainfall.

It also based the move – which accompanied an affirmation of Zambia’s non-investment grade B rating – on an expected deal with the International Monetary Fund by the end of the year.

“Copper prices have risen by about 18 percent in 2017 and core liquid assets in Zambia’s banks by some 44 percent over the same period,” it said.

“The near-term outlook for the economy has improved in recent months,” it said, citing a bumper harvest and increased hydroelectricity generation.

It projected real GDP to grow 4 percent this year compared with 3.4 percent in 2016.

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38 COMMENTS

  1. Depending on where you sit this can be good or bad news as follows,
    1. You are a UPNDonkey – very bad news, propaganda by Standard and Poors
    2. You are a Zambian – good news indeed, you can see tge results of your hard work to improve our Zambia.

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    • Yes, “stable,” albeit full of squabbles; still sick, though now out of danger of imminent death.

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    • Ati stable then you dance, this is like you have HIV diarrhea, then you take some medicine and eat meat for a moment,,,without running to the toilet,,, then you say you are stable.

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    • “…..on an expected deal with the International Monetary Fund by the end of the year…”

      Good news for Zambia but it had to take the commonwealth SG to tell lungu and his thugs to behave or no IMF………bearing in mind lungu is supposed to be a lawyer.

      We told you PF rats that you now being watched……

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    • How can rain be a factor if no farmers this coming season grow maize as a result of poor market prices! Farmers have been discouraged it a real disaster in the rural areas!

      @JayJay I have to agree with you! How and why should a fat belly MP be given K100,000 per month for what in Christ’s good name??? And sad fact is even the UPND chaps are silent to it because they all eat the same cake!

      May these chaps be cursed all of them! Meanwhile prisons and the maize floor price remain unsolved issues!

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    • @ Spaka like lilo, it may be good news however,

      “…..on an expected deal with the International Monetary Fund by the end of the year…” can also be interpreted to mean Zambia accepting to be harnessed to the IMF yoke with its demanded conditions!

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    • A lot of imbeciles voted for HH on account of load shedding electricity power. But see, there is no more load shedding.

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  2. So the arson and sabotage were nought, thanks to quick action by the government, I mean Article 31. Keep it up our beloved government! Let the UPNDonkeys rot with envy!

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    • Credit where its due, regardless of political affiliation, this is positive news and should be accepted as such.
      You can not expect economical issue to be resolved within a day, but any positive strides should be applauded and encouraged.
      For me personally, Government well done!!

      @Terrible,
      Do not spoil the good news by misusing it with stup.id and illogical arguments as you have demonstrated above

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    • It was PF kapoyongo carrying out the arson attacks.. ….have you arrested and charged anyone ?

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  3. This is very true!!from July,2017 things have picked up and cash flow in society is slowing improving!!KEEP IT UP PF GOVNT!!
    YES YOU CAN DELIVER!!!
    BRAVO TO ECL AND ALL GOVNT WORKERS!!!haters in upnd wont receive well this good news for mothet Zambia as all they want is zambians to be facing hell in their lives!!!NO WEAPON FORMED AGAINST PF GOVNT OR ZAMBIA SHALL PROSPER-AMEN!!

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  4. Zambia’s growth under PF has been sub par . Rwanda is doing 7%,Tanznia is growing 6.7% and the bigger economy of Kenya is expanding at 6% rate.

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    • I agree with you.
      However, this is the first step in the right direction. Firstly, stabilize the worsening situation, thereafter put in some growth strategies.
      Its not the best achievement and I would have expected a more vibrant result. But with what we currently have in place, lets say it is good, they needed to stop the worsening situation. Now, lets hold them accountable to make same improvemnts as achieved by Rwanda,Tanzania, Kenya, etc.
      One factor is the budget plan, which PF should adher to. And they need to stop those travels, because up to this point they have not beared any tangible benefit to the economy.

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    • How are south Africa, Nigeria and Egypt doing? We should not use selective data but let it be representative of Africa

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    • @ Faza South Africa and Nigeria are in a recession. However we cant make a comparison with Zambia, as those are much larger economies, who have FX reserves in excess of $31 bn, including commodities such as Gold for SA and the JSE alone has a market cap of over $130bn. Egypt has improved since their floating of the currency, GDP is expected at 5% and set to be better in 2018. Current FDI inflows of all 3, much bigger than ours.

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  5. “The ratings firm said …..this remained hostage to the govt sticking to its budget plans and to outside factors over which the Zambian government has no control – the international price of copper, and rainfall.”

    So from the above we can conclude that this stability is mainly based on external factors that Lazy Lungu and tins have no control over …as for staying with budget these tins have no choice as they do not have funds. If only they tighten their belts like the Kenyan president has proposed to reduce salaries..how can Zambian MPs be taking home K100000 at the end of the month.

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    • Is this real, Zambian MPs are earning 11.120 USD per month? How much is the President?
      Almost similar to an MP in European Parliament, do the Zambian MP deserve that high pay considering our economy?

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    • @General Kanene – These MPs had even the audacity to summon Antonio Mwanza of FDD for revealing this information:Sitting allowance: K3, 000 per sitting. Multiply that by 4 sittings per week, it comes to K12, 000 per month per MP. And if an MP sits in two committees he walks away with K9, 000 per day. So in a month, one MP gets a whooping K48, 000 in allowances alone. Add a Salary of about K31, 000 to that, plus Accommodation allowance which is calculated at K500 per day plus upkeep allowance, plus tax free beer and food, the total amount we are spending to service one MP comes to a gigantic K100, 000 per month. Forget about the tax-free vehicle, traveling allowances, plus a staggering gratuity of about K500, 000 after five years of dozing and shouting “Hear Hear Hear!!!”

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    • These MPs had even the audacity to summon Antonio Mwanza of FDD for revealing this information:Sitting allowance: K3, 000 per sitting. Multiply that by 4 sittings per week, it comes to K12, 000 per month per MP. And if an MP sits in two committees he walks away with K9, 000 per day. So in a month, one MP gets a whooping K48, 000 in allowances alone. Add a Salary of about K31, 000 to that, plus Accommodation allowance which is calculated at K500 per day plus upkeep allowance, plus tax free beer and food, the total amount we are spending to service one MP comes to a gigantic K100, 000 per month. Forget about the tax-free vehicle, traveling allowances, plus a staggering gratuity of about K500, 000 after five years of dozing and shouting “Hear Hear Hear!!!”

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    • General Kanene – These MPs had even the audacity to summon Antonio Mwanza of FDD for revealing this information:Sitting allowance: K3000 per sitting. Multiply that by 4 sittings per week, it comes to K12000 per month per MP. And if an MP sits in two committees he walks away with K9, 000 per day. So in a month, one MP gets a whooping K48000 in allowances alone. Add a Salary of about K31000 to that, plus Accommodation allowance which is calculated at K500 per day plus upkeep allowance, plus tax free beer and food, the total amount we are spending to service one MP comes to a gigantic K100000 per month. Forget about the tax-free vehicle, traveling allowances, plus a staggering gratuity of about K500000 after five years of dozing and shouting “Hear Hear Hear!!!”

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  6. Hmmm. Isn’t this the same agency that gave American banks top AAA ratings just before the 2008 economic crisis?

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    • No one was able to predict 2008 economical crisis with precision and accurace. They were all wrong !!!
      So no point in you trying hard recalling your memory and picking out one company. Again, not an intelligent argument.

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    • All Credit rating gave good ratings to that sub prime junk…everyone was blind. Credit Agencies where in a catch 22 ..if they gave poor ratings the banks simply take their business to their competitors. I urge you to read Michael Lewis novel – Big Short or better still watch the movie and the documentary Inside Job.

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    • @general Kanene, I ain’t trying hard at all. It might not seem an intelligent argument to someone with very little intelligence. My point is these ratings are open to manipulation, and may not be a true measure of how stable an economy is.

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  7. We always forget God in Zambia’s prosperity equation which is God + People + Faith + Diligence = Prosperity. Nothing is possible without God. He has seen us through drought, load shedding, engineered political strife etc. This is all because He loves us. Let us continue being faithful to Him & working hard as a people & He will continue to reward us in accordance with His promise. He has so much in store for Zambia. We need to play our part of being faithful & hard working. Then He will trust us with more. No country becomes great by consuming but by producing. Let us ask God to become even more productive. God Bless Zambia!

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  8. General Kanene – These MPs had even the audacity to summon Antonio Mwanza of FDD for revealing this information:Sitting allowance: K3, 000 per sitting. Multiply that by 4 sittings per week, it comes to K12, 000 per month per MP. And if an MP sits in two committees he walks away with K9, 000 per day. So in a month, one MP gets a whooping K48, 000 in allowances alone. Add a Salary of about K31, 000 to that, plus Accommodation allowance which is calculated at K500 per day plus upkeep allowance, plus tax free beer and food, the total amount we are spending to service one MP comes to a gigantic K100, 000 per month. Forget about the tax-free vehicle, traveling allowances, plus a staggering gratuity of about K500, 000 after five years of dozing and shouting “Hear Hear Hear!!!”

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  9. Hunger and so called “stability” can never reside in the same stomach. Zambians are hungry.

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  10. If it was a test result, we would say we are now at 50%. Where we go from here depends on what we do going forward. Our being below 50% was largely self-inflicted. We need to move away from partisan mentality and begin to do what is in the best interest of our country. It is quite shameful to continue having our poverty levels in excess of 50% of our small population of 15 million which gives an average population of 1.5million per province. It’s too early to get excited. Developing a nation takes more than just wishful thinking and we need to work smart! We still have Euro bonds to pay in 5 years from now. Are we going to be above stable then? The political noise must die down and all parties that don’t hold conventions should be barred from contesting elections in 2021!

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  11. @1.4 mabilafu, I am talking about UPNDonkeys, are they not the ones who talked about cutting off their stronghold from the rest of Zambia if underfive did not rule? Are they not the ones who promised to make Zambia ungovernable if underfive did not rule? Are they not the ones who boycotted parliament because undergive could not rule? In your opinion, do they sound like Zambians or UPNDonkeys? You got a short memory? Or perhaps a UPNDonkey memory?

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  12. @3.1 Jay Jay, Terrible is Terrible he does not pretend, instead there are (unsuccessful) attempts by some UPNDonkeys to imitate him. Rest assured Terrible shall remain Terrible with his signature Trade Mark, UPNDonkeys.

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  13. 2.1 general Kanene, Terrible cannot make worse what UPNDonkeys are all about. How can Terrible spoil what UPNDonkeys believe in? I cannot spoil the good news, I can only make it more exciting by exposing the bad wishes of miserable UPNDonkeys……
    By the way, general Kanene, you don’t happen to be a UPNDonkey yourself, are you?

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  14. Terrible this is not good news in any way. When PF came in power our rating was good and had a big surplus now we broke and begging IMF for a loan. I don’t care what the ratings say and the ratings and reality are too different things. The reality is that our relatives are starving and being taxed to death, you terrible call home now and you will hear 10 -20 problems and people needing your help, its foolish to think the country is doing well from a rating report that says stable.

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  15. Zambia has been stable and very good. The politicizing of the indisciplined chap’s arrest had led to the “unfavourable rating” by the cartel! Now that the destablizing queen is out of prison, Zambia is rated well again! UPND is a cancer to Zambia! Cancers need to be eradicated.

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  16. Its a shame most Zambians do not know how to really interpret these ratings and comments from Economic players .Even the people who are in the diaspora who you would expect because of exposure to offer more intelligent contributions just write utter Vanity .The comments am seeing here really question our education system and indeed if people are educated or just schooled .

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  17. The economy does not change just like that. It requires real input by you and me. Just playing the blame game shall never bring food onto your table. Choose to be an effective person. Believe that your input is the one to make or not make those changes you want. Our leaders shall only help us by making the pronouncements on policy and surely cannot be in every one’s home to physically help.

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