Q FM Africa's Modern Radio
Cabinet has authorized the conclusion of discussions with the International Monetary Fund on its support to government’s home grown programme dubbed Zambia Plus.
Chief Government Spokesperson Kampamba Mulenga in a statement says Cabinet made the authorization at its sitting on 11th April, 2017.
Ms Mulenga says this followed progress made in the initial programme discussion during the IMF Mission to Zambia from 8th March to 24th March 2017.
She says the IMF approach has evolved from prescription to engagement with its programmes now emphasizing ownership of programmes by countries.
Ms Mulenga states that the IMF also emphasizes on policies that focus on social protection, inclusive growth that has potential to create jobs and reduce poverty including ring-fencing of programmes in the health and education sectors.
She adds that the IMF has done away with structural conditionalities such as wage freeze as these had a negative impact on poverty.
And Ms Mulenga says Government’s Economic Stabilisation and Growth Programme has so far resulted in relative stabilisation of the economy.
She points out that the exchange rate is stable, investors have returned to the domestic securities market with preference for longer term instruments, inflation has returned to single digits while growth is positive at around 3%, above the Sub-Saharan African rate of 1.4% for 2016.
Ms Mulenga says electricity supply is also stabilizing giving impetus to economic activity, mining production that has been increasing following a dip in 2015 and agriculture sector where a bumper harvest is expected for 2016/17.
She says notwithstanding these developments, risks remain on account of a deteriorated external sector position that has resulted from weak exports, high fiscal deficit and debt levels, the continued threats of climate change and fragility of the global economic growth.