World Bank Country Manager Ina Ruthenberg explains on the book called Zambia Economic Brief shortly before the World Bank Launches of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg explains on the book called Zambia Economic Brief shortly before the World Bank Launches of the tenth of Zambia Economic Brief at Pamondzi Hotel

The World Bank says Zambia’s economy will grow more slowly than expected, expanding 3.8 percent instead of the previous forecast of 4.1 percent.

The World Bank said in a statement today that this follows weak performances of the services, mining and construction sectors.

The bank has forecast growth of 4.3 percent in 2018 and 4.7 percent in 2019.

“There remains a need to look closely at ways to improve debt management to ensure that economic growth has sustainable foundations and that borrowed money is invested wisely to ensure inclusive growth,” the World Bank said.

“Economic recovery in Zambia has been subdued in 2017, despite a bumper harvest, improvements in the generation of electricity, and an easing of monetary policy. This follows weak performances of the services, mining, and construction sectors. Growth is forecast to improve only modestly to 3.8% in 2017— up from 3.6% last year—and to strengthen to 4.3% in 2018 and to 4.7% in 2019. The forecast assumes the government will continue implementing its economic reform program, Zambia Plus,” it said.

And in its 10th Economic Brief for Zambia, the World Bank notes that this year, Zambia took the new step of publishing a medium-term debt strategy, and opportunities to refine it and turn it into a rolling strategy, updated annually, can be pursued as it moves forward with it.

The brief titled “How Can Zambia borrow with Sorrow”, the World Bank proposes the strategy should not only guide a slowing down of the accumulation of debt, but should also shift the composition of it and manage the risks of the country’s debt portfolio.

The report says Zambia’s government should have an internal borrowing plan to use in pursuit of the objectives in the medium-term debt strategy. Countries all over the world borrow to finance their investment and development: Zambia is no different, and it has huge and immediate infrastructure needs.

The report notes that a little over 10 years after a major debt relief effort, the rapid accumulation of debt has once again put Zambia in the spotlight.

“Debt is an important source of development finance, and a key tool for eradicating poverty,” said Gregory Smith, World Bank Senior Economist. “The debt needs to be managed carefully and the proceeds of borrowing shrewdly invested,” he added.

The report says a new and more active approach to debt management is needed now that Zambia is tapping capital markets and has many sources of borrowing. This means implementing a well-crafted strategy to reduce the cost of borrowing, extend the terms, and diversify the sources of debt funding.  “There remains a need to look closely at ways to improve debt management to ensure that economic growth has sustainable foundations,” said the World Bank’s Country Manager for Zambia, Ina-Marlene Ruthenberg, “and that borrowed money is invested wisely to ensure inclusive growth.”

World Bank Country Manager Ina Ruthenberg explains on the book called Zambia Economic Brief to Minister of Finance Felix Mutati shortly before the World Bank Launches of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg explains on the book called Zambia Economic Brief to Minister of Finance Felix Mutati shortly before the World Bank Launches of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg explains on the book called Zambia Economic Brief shortly before the World Bank Launches of the tenth of Zambia Economic Brief at Pamondzi Hotel
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World Bank Country Manager Ina Ruthenberg and Minister of Finance Felix Mutati follow the proceedings during the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg and Minister of Finance Felix Mutati follow the proceedings during the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg and Minister of Finance Felix Mutati follow the proceedings during the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
World Bank Country Manager Ina Ruthenberg and Minister of Finance Felix Mutati follow the proceedings during the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
Minister of Finance Felix Mutati delivers his speech at the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
Minister of Finance Felix Mutati delivers his speech at the World Bank Launch of the tenth of Zambia Economic Brief at Pamondzi Hotel
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56 COMMENTS

  1. Could this be UPND’s careless statements of late.

    Either any growth north of 3% is a ridiculous good economy ladies and gentlemen

    PRESS GREEN if you are IMPRESSED

    Thanks

    BB2014,2016

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    • As long as you have confirmed bandits and assorted misfits at the helm Zambia will always remain at the bottom rung, the third hungriest nation on earth.

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    • Where did upnd get this ranking from – 3rd hungriest nation in the world? Surely, even if you want to rule!

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    • Why is Mutati holding Manager Ina Ruthenberg like that. Why can’t he keep his hands to himself! Weinstein has just been accused. Mutati concentrate on delivering IMF to Zambia man.

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    • If the IMF and the forecasters knew the true extent of affairs, this growth forecast would be a large negative number.

      You can not mention PF and economic growth in the same sentence…the only thing growing in zambia is the wealth of politicians, corruption, poverty amongst the average population, and dictatorship.

      Lord please deliver us from these evil people that have hijacked out beautiful country.

      Amen.

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    • @Nwambe

      The sad stats that says Zambia is the 3rd hungriest nation on the planet is unfortunately true. Don’t you read anything about your country? Try google! Zambia ranks with Somali and the later can be forgiven, they haven’t had a govt for more than 20 years. What does it all say about your leaders? And I am not UPND though I believe HH is better placed to govern Zambia successfully. He knows exactly what needs to be done to get the economy straightened out whereas lungu and his minions have zero clue.

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    • Retardation, no matter how small, must always raise concerns.

      These polite yellow flags from world economists on Arabia’s current route must not be ignored, they may turn out nasty.

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    • How can a country be hungry but it grows almost 4 times its required consumption of its staple food??? This country produces enough chicken, beef and even exports goat. This country produces excess sweet potato, cassava, wheat, sorghum/millet enough for export and most goes to waste. Zambia produces excess soya. Kafue and Yalelo fisheries give us fresh fish daily, which country are you saying is hungry iwe Wantanshi?? Nashako dobo, kapala iwe!!!

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    • @Zambian Citizen

      When even IMF begins to think twice about giving you a loan it’s time you began looking inside yourself, investigating your sanity. IMF should be last resort when you are absolutely at your wits end.

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    • IMF is not the ultimate benchmark. IMF only came up after the commodity downturn and the budget deficit that insued after the infrastructure projects. With the upward fortunes of copper, the positive economic growth projected by even the WB, the IMF might not be so relevant in the coming years .

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    • @ Nwambe

      wwwDOTlusakatimesDOTcom/2016/07/08/zambias-ranking-third-hungriest-nation-world-unacceptable-cso-sun/

      Have u been living under a rock? PF/MMD is the worst curse Zambia has ever experienced.

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  2. Despite the setbacks in 2017 the future gives some hope from 2018 onwards, although it’s just a trajectory which is amenable by several variable factors. But we must admit that things are not currently good.

    THE BANK of Zambia says a recent survey shows that Zambia’s net foreign direct investment inflows sharply declined by 58.7 per cent to US$486.1 million in 2016 from US$1,177.4 million in 2015.

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  3. ‘ his excellence’ mutati has run of options and solutions,,, meanwhile ‘his excellence’ lungu is still sorting out his matrial problems,… Am waiting for ‘his excellence’ Emmanuel mwamba to issue a statement from south African….,
    Am just wondering what playboy Antony mwikwita was about the economy……

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  4. And Mutation is there speaking poems in his robotic monotone voice.

    Slow down on nkongole boss. Affectionate behaviours towards those people won’t save us.

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  5. The worst is yet to come, wait and see. Mutati resign in national interest before people die of hunger. why are you so stubborn? Just accept that you have lamentably failed, let real economic managers be at the helm of that ministry. The IMF has said it and the world bank is echoing the same thing debt, debt, debt, and misapplication of funds. Fiscal discipline is zero, kaponya economics at play kkkk… dununa reserve for real.

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    • How else do chancers supposed to perform? Lest we forget that our govt is supposed to be on probation, a govt by virtue of a demise of a true revolutionary is always a gamble. Whoever says that food in Zambia goes to waste is in govt and they don’t feel the exorbitant prices we pay for survival in this merciless country.

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  6. Mushota let me help you with some education you might have not garnered during your phd

    GDP means nothing. Its GDP PER CAPITA that counts (i.e. GDP per person based on your population).

    Western countries have a population growth of 1,6% versus GDP growth of say 2,5%

    Our population is growing by 4,3% annually. So anything below this means per each Zambian person, we are getting poorer.

    The overall GDP might be growing but our population is growing faster. Meaning our cake is growing but on the other hand there are more mouths to feed.

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  7. I truly wonder the state of the people in charge of our economy. How do you explain cabinet agreeing to basically paralyse the economy by restricting movements of cargo only during the day and you expect economic growth? This is the worst kind of try and error Zambia does not need! And when you see the negative results with your humble pie in your throats, you amend the SI and expect a rebound in the last few weeks of the year, at least maybe in the Mutati head it can happen. These people are so annoying and the kateka is there arms folded with no sense of direction to guide his ever failing ministers!

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  8. I wonder why we are still relying on World Bank to predict for us our economic growth?

    Are we short of Zambian economic experts who can analyse our economy and write a comprehensive report on the state of our economy? Why should it take Ruthenberg to tell us obvious things like “an internal borrowing plan is a better strategy compared to external borrowing”?

    We should not be worried that our GDP may go only up 3.8%. What should rather be worried by our failure to predict our own future and the embarassment of having our Finance Minister being lectured by foreign managers like a school boy.

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    • Just learn to understand and respect the role that the WB plays in the world of finance. Which future can you predict with borrowed resources? Or is Zambia able to manufacture even tooth picks to predict anything? Let’s be realistic

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    • What is there to understand and respect about someone who takes away your watch to tell you what time it is? Our resources are not borrowed, they are God-given – but we sell them under their value.

      Why should we always agree with everything they say about us? Let’s dare to disagree and question their world view – with self-analysis and willingness to mature. We can continue listening to them but never expect their opinnion to be Gospel truth. Self-analysis is the best way to excel because it is free from all biases and manipulation.

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  9. This is an economy that was in free fall after the commodity crash of 2012/13. It is now showing growth, not as required but growth not recession. WB acknowledges the country will still borrow but places emphasis on prudent management of debt. But the challenge remains on how the economy must be diversified. Felix, Denny and the team have managed to halt the rot and set the economy on the growth trajectory but more work awaits them. Citizens need to exploit the vast potential presented by the agricultural sector and others such as timber (trade and manufacturing), gemstones, local construction, services etc. We can only look forward and never backwards. God bless Zambia.

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    • 2012/13, more like 1970, the gdp calculations are not reliable( it’s built on fiscal policies that will cause future tax liblities, high levels inequality, poor investment in actual human capital, our most effective farmers farm to export etc) we really are having the wrong conversations guys. Forget your political affiliations and actually seek the truth. The truth on how we allocate resources and our culture. Pf or upnd when the boat sinks we are all going under.

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  10. After spending $17 billion all your figures are pathetic and embarrassing………you just spent what ? $17 billion and mostly unproductive roads and empty clinics and hospitals to show for it……looks like lungu and PF were hoping by now copper would be selling at $15 k per ton. …..some one gave them false predictions…

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    • What empty clinics iwe spaka chikopo??? Have you been to the level 1 hospitals, are you aware referrals to UTH have dropped 80%+, if the clinics were empty, how could that statistic be??? Unproductive roads?? Uli ndoshi, people from Shang’ombo now are able to go to Sesheke and Katima to work every morning because of the bridge built and you call it unproductive??

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    • Citizen go to chawama clinic, people are given panadole for everything…..and if those roads you talk about are productive why the he’ll are we going begging back to the IMF???
      ..

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  11. UPND cadres really amaze me a lot!!look,statistics from World Bank,IMF or whoever wont take your Kainde (HH) to plot one-NEVER!!if you read the above statement from WB properly,you will notice that things are not bad AS UPND WANT US TO BELIEVE!!!PROPHERTS OF DOOM IN UPND ALWAYS WISH ZAMBIA HELL-ONE WONDERS WHY!!!
    The PF Govnt is on course,so everything will be fine soon!!The 3.8% econonical growth is not bad.big economies such as USA,Japan,in some years,their economies grow by 1.5% or so.The South African economy in 2017 will grow by less than 2%!!!SO WHAT CAN KAINDE (UPND) FOLLOWERS TELL US?TO HELL WITH YOUR EVIL STATISTICS ABOUT MOTHER ZAMBIA!!
    In God we trust,so no weapon formed against Zambia shall prosper!!!
    NOTE;WHETHER OUR ECONOMY IS BAD OR NOT,WE CANT VOTE FOR HH’S UPND IN 6.5…

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    • Njimbu did who ever told you about those economies like USA, Japan and SA also tell you that they are major manufacturing and exporting economies , exporting every thing from cars , marchinaery to medicines ?

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  12. Continue….
    NOTE;WHETHER OUR ECONOMY IS BAD OR NOT,WE CANT VOTE FOR HH’S UPND IN LARGE NUMBERS IN 6.5 PROVINCES BECAUSE HE IS NEVER AN OPTION!!!
    our economy has been bad since 2014 and it was worse in 2015/2016 when copper prices dropped badly,load shedding was the order of the day,Kwacha agaist the US$ reached k13,a 25 KG of mealie meal was about k120,etc.DESPITE ALL THIS HELL,MAJORITY ZAMBIANS STILL VOTED FOR PF AND REJECTED HH FOR A RECORD 5TH TIMES!!!therefore,why dont you learn in upnd?TODAY WE HAVE POWER 24/7,MEALIE MEAL IS AT K55,KWACHA IS STABLE,ETC- FURTHER PUSHING HH AWAY FROM STATE HOUSE!!economical issues wont take HH to plot one-simple!!!VOTING FOR POLITICAL PARTIES IN ZAMBIA IS REGIONAL!!a party popular in many provinces will win 2021!!
    NJIMBU BB 2017!!

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    • Which party had just spent $17 billion and had all state marchinery including illegal ministers to campaign ? Ohhh I’ll be darned , it was PF who in spite of all this only managed a disputed 100 k majority!,,

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    • …but spaka chikopo, which $17bn?? You really have nothing to contribute, do you?? Still goes back to petishoni??? Uli chi soso, zoona!!!

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    • If hall the hidden debts IMF are digging up and other concessions lungu and pf signed away mopani paying fixed 2015 electric tarriffs for the next 40 years you will find zambia owes much much more that 17 billion…

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  13. Which US$ 17 billion which this tonga cadre called “spaka like lilo” always refers to?
    I have never read or seen anybody talking about PF having spent US$17 billion on campaigns in 2015 or 2016!!FROM WHERE DOES THIS DULL RAT GET HIS WRONG FIGURE?FROM HH’S OFFSHORE ACCOUNTS!!!KEKEKEKEKEKE!!!
    Ukose “spaka like lilo” because come 2021,it will be “DUNUNA REVERSE RELORDED!!” and your Kainde will DANCE PELETE ONCE MORE at the hands of MIGHTY PF!!!
    NJIMBU BB 2017!!

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    • Imwe ba njimbu you are turkey a thick kaponya rat…… $17 billion was spent by PF, Zambia owes $17 billion…..lungu did not even have to campaign after spending that 17 billion…

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    • Let me put it in plain English for njimbu….just before elections Zambia debt was around 9 billion US , this was spent from 2010…..one can say during campaign time , so it is as good as saying lungu did not even need to campaign.. ….now as they need more money they go to imf but imf uncovers more hidden debt
      In reality Zambia owes close to 17 billion US and if you take into account conssessions signed by PF during campains to get funds like the 2015 resigning of mopani contract were they got a 40 year exemption to pay 2015 electricity tariffs you will find zambia actually lost many more billions….

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  14. Victor trump needs to deport you so you can experience the poverty in Zambia because now you speaking from without, even your boss would be mad if your productivity fell how are we to say this good. There is so much mediocrity in PF now such that u praise a negative report as good instead of thinking about improvements

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  15. Frankly, I am surprised that Zambia is able to wring even this tiny bit of growth, when our president is the eagle of the skies!

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  16. History has to guide us for logical conclusions.SAP was implemented under the advise of IMF.What was the results?I have no idea but i beg to be educated if there be any country that has on this planet benefited from IMF .Shouldn`t we be looking within and try to find our own solutions for when we emerge victorious on the other side,we will have learnt that we can walk and not crawl all the time.

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