• World
  • Columnist
  • Commodities
  • WORLD BUSINESS & ECONOMY
  • Executive Knowledge Series
  • Finance
  • Manufacturing
  • Markets
  • Risk & Governance
  • Small Business
  • Technology, Media & Innovation
  • Comments
  • Business AM WebTV
  • Login

Businessamlive
  • FRONTPAGE
  • FINANCE
    • AllAsset ManagementAuditBankingBondBudgetCapital MarketsC&I LeasingCurrencyDealDebt marketForexFund RaisingFundingGovernmentHedge FundsInsuranceInvestmentInvestorInvestor ServicesMergers & AcquistionsMoney marketTreasury BillsMortgagePensionsPersonal financePonziQuantitative EasingshareTaxationTSAWealth Management
      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

      Companies

      Total Nigeria, Mixta, Valency, list new CPs on FMDQ platform to enhance financial markets development

      January 19, 2021

      Finance

      Amidst N32.22trn public debt, analysts say Nigeria’s external debt service manageable

      January 19, 2021

      Finance

      Stringent regulations, business environment forced Stanbic IBTC out of BDC business

      January 15, 2021

  • MARKETS
  • ECONOMY
    • AllAfricaAgricAirportsAmericaAsiaAustraliaBreakthroughDealEuropeForeign InvestmentsforexGlobal marketGovernanceIMFMiddle EastNECANigeriaOutlookRich listSouth AfricaSport BusinessTradeU.KWest AfricaWorld Economic forum
      Markets

      Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO

      January 23, 2021

      Africa Investment Forum

      Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina

      January 22, 2021

      Frontpage

      Covid-19 vaccine: Nigeria, 54 others to benefit from African Union’s 270m doses

      January 21, 2021

      Finance

      Nigeria, Africa remittances on target as Wari, Lycaremit sign partnership

      January 21, 2021

  • COMMODITIES
  • ENERGY
    • AllConferenceElectricityOil and GasPowerRenewable
      Companies

      Appeal Court suspends order against shutting of SEPLAT headoffice

      January 23, 2021

      Frontpage

      OPEC welcomes push for electric vehicles, but says fossil fuel remains strong

      January 21, 2021

      National: Governance, Policy & Politics

      Nigeria ramps up domestic LPG consumption above 1MMT, says PPPRA

      January 20, 2021

      Companies

      TIPP Oil, German lubricant maker, targets 2021 Nigeria launch with eco-friendly scheme  

      January 19, 2021

  • TECHNOLOGY
  • MANUFACTURING
  • ANALYSIS
    • Analyst Insight

      CBN meeting and NSE in focus

      January 18, 2021

      Analyst Insight

      Once again, fiscal stimulus takes centre stage

      January 18, 2021

      Analyst Insight

      Organisations must learn from the WhatsApp story  

      January 18, 2021

      Analyst Insight

      Data privacy maturity model in organisations

      January 11, 2021

Africa

Zambia expects $1.6 billion IMF deal to be sealed before July

May 11, 2017925 views0 comments

Zambia will conclude a deal with the International Monetary Fund for as much as $1.6 billion by the end of June, Finance Minister Felix Mutati said.

“We will conclude by the end of the second quarter,” Mutati said in an interview Wednesday in Nairobi, the Kenyan capital. “There is no question on whether the deal comes through or not. The deal is coming through.”

The country has been talking about getting IMF aid since 2014 but an agreement has been delayed by two presidential elections, which made the required reforms politically unattractive.

A team from the Washington-based lender visited Zambia last month and will return at the end of May to continue the discussions, according to Alfredo Baldini, the fund’s representative in the country. The southern African nation, the continent’s second-biggest copper producer, has struggled with ballooning budget deficits in recent years as metal prices fell and government spending increased.

Read Also:

  • Nigeria market expects maize price drop to N120,000 per tonne

The IMF is evaluating Zambia’s loan application and the nation can secure between $1.3 billion and $1.6 billion, Mutati said.

“You submit and have a conversation,” he said. “They have internal evaluation, they come back and ask questions. It’s a typical process that happens to all countries without exception.”

The IMF loan would be a “growth enabler” and help the government to broaden its sources of external credit, Mutati said. Zambia’s external debt has increased to $6.9 billion while total debt stock stands at about $10 billion, according to the government. It has sold $3 billion in Eurobonds, the most recent sale being $1.25 billion in 2015.

The IMF forecasts Zambia’s economic growth will accelerate to 3.5 percent this year, from 3 percent in 2016. That’s close to the slowest expansion since 1998, when the economy contracted by 0.4 percent. Copper has gained 18 percent over the last 12 months in London but is still 38 percent down over the last six years.

Economic growth is buoyed by rising foreign-exchange reserves, a stable currency and increasing metal prices that have boosted export earnings, Mutati said.

“It’s not an issue about the actual figure, the issue is about what financing gap we want to fill,” Mutati said. “We will get from other sources using the IMF as a launchpad.”

Zambia won’t spend beyond its means and is cutting expenditure on capital projects that the economy doesn’t need to make debt manageable, Mutati said.

Share on Facebook Tweet Email
TagsAfrica Zambia
PreviousSnap shares plummet as investors mark down first earnings report
NextBenzoic acid and soft drinks: Of emotions, exaggerations and misrepresentations

Leave a comment

- Cancel reply

MARKET DATA

Market Videos

Recent Posts

  • Appeal Court suspends order against shutting of SEPLAT headoffice
  • Eko Atlantic City to utilise local content for economic diversification in Nigeria
  • Nairobi Stock Exchange pushes expansion plans with more listings in 2021, says CEO
  • Africa’s $60bn losses in illicit capital flows due to multinationals’ tax avoidance, says AfDB Adesina
  • Nigeria equities go bearish on selloffs in DangCem, AXA Mansard, UBA

World

Africa

Buhari, Okonjo-Iweala congratulate Adesina over reelection as AfDB President

Europe

EU businesses to cut investments in 2020, says EIB report

America

U.S. increases cost of visa application for Nigerians

Africa

Thatcher-Loving Nigeria Candidate Plans to Overhaul Economy

Africa

AfDB scales up industrialization pace on the continent, delivers improved business access to finance, skills, energy

Frontpage posts

0

Inflation rise dampens chances of CBN rates cut before year-end

Frontpage October 22, 2019

1
2

Nigeria’s central bank sets up meeting with MTN, Stanchart, StanbicIBTC, Diamond to discuss $8.1bn funds transfer

Frontpage November 8, 2018

3

Nigeria’s crude exports expected to rise to 1.7m in May

Frontpage May 9, 2017

4

Nigerian equities continue downtrend, lose N32bn in day’s trading

Frontpage September 5, 2019

5

Nigeria insurers request extensionrecapitalisation deadline by regulator, NAICOM  

Frontpage November 10, 2020

SUPPORT

  • Photo Gallery
  • Help Centre
  • About Us
  • Accessibility

LEGAL & PRIVACY

  • Terms & Conditions
  • Privacy
  • Cookies
  • Copyright

SERVICES

  • Conferences & Events
  • Analysts Research
  • Advertising Rate
  • Ebooks

TOOLS

  • Portfolio
  • Newsletters
  • News feed
  • Currency Converter

SUBSCRIBE

Join us to get latest updates on business related news.

[mc4wp_form id="3076"]
  • ABOUT US
  • CONTACT US
  • CAREERS
  • TERMS & CONDITIONS
  • PRIVACY POLICY
Copyright 2017. All rights reserved. BusinessAMLive. A Businessnewscorp Member Company.