
THE Central Bank says Zambia’s international reserves, now standing at US$ 1.7 billion, are the highest attained in the last 38 years.
Bank of Zambia Governor Caleb Fundanga said international reserves are expected to rise to about five months of import cover by the end of 2009.
Dr Fundanga said this in Lusaka yesterday during a third quarter briefing.
He said international reserves stood at US$1.4 billion before Zambia was hit by the global financial crisis.
“Having adequate reserves is important because if there is any external shock, the reserves can help to stabilise the Kwacha and cover up imports,” he said.
Dr Fundanga said Zambia’s overall balance of payments support position improved to a surplus of US$ 645.5 million in the third quarter.
He attributed Zambia’s balance of payment position to improvement in both the current (exports earnings that rose by 45.7 per cent) and the capital and financial accounts.
Dr Fundanga said capital and financial account surplus had a large increase to US$532 million from US$129.7 million recorded the previous quarter.
He attributed the increase in capital and financial accounts mainly to receipt of special drawing rights of US$627.3 million from the International Monetary Fund and an increase in capital transfers to US$65 million compared to US$41.4 million in the previous quarter.
Dr Fundanga said the gross domestic product (GDP) growth as projected by the Central Statistical Office at 6.3 per cent for this year was primarily driven by increased output in the mining, construction and agricultural sectors.
He said mining is projected to grow by 21 per cent, construction by 15.5 per cent and agriculture by 7.1 percent.
Dr Fundanga said growth in manufacturing was supported by increased output of cement, clear beer, soft drinks and milk by 30.4 per cent, 11 per cent, 15.4 per cent and 14.9 per cent respectively.
During the quarter under review, total output of soft drinks increased by 15.4 per cent to 91.968 hectolitres from 79,654 hectolitres produced the previous year.
BoZ also notes that production of milk increased by 14.9 per cent to 7,923,382 litres from 6,892,785 litres produced in the previous quarter.
He said tourism also registered an increased number of arrivals at the country’s four international airports to 102,918 passengers from 88,066 passengers in the second quarter of 2009.
He further said the number of tourists visiting national parks was 26,720 in the third quarter of 2009, up from 11,440 in the previous quarter.
Dr Fundanga said total investment pledges in the real estate sector stood at US$622.8million, compared to US$567.2 million in the second quarter.
He said when fully executed, the pledges were expected to generate 5,594 jobs.
[Zambia Daily Mail]