Zambia’s rating by Standards and Poors Global moves from negative to positive

Felix Mutati

Felix Mutati

Finance Minister Felix Mutati says the upgrading of Zambia’s sovereign rating by Standards and Poors Global from negative to positive-with-a-stable-outlook is endorsement of the soundness of the policies being implemented by the Government of President Edgar Lungu to stabilize and grow the economy.

Standard And Poors [S&P] Global Ratings has revised Zambia’s outlook on the ‘B’ long -term foreign and local currency sovereign ratings to Stable from Negative.

At the same time, the ‘B’ long-term and ‘B’ short-term sovereigns have been affirmed.

Mr. Mutati says this development rides on the basis of the critical reforms which government has embarked on as a country under the Economic Stabilisation and Growth Programme to implement fiscal consolidation, remove subsidies, reform the energy sector, and embark of diversification of the economy through agriculture development and industrialization.

He says the result from the assessment conducted by S&P Global is a welcome incentive for investors as they should remain confident assured that this country is on track with economic stabilisation and growth.

He adds that government will work diligently to ensure that the confidence of the people and that of investors in the good intentions of the government to stabilize and grow the economy are not taken for granted.

According to the report on Zambia issued by S&P Global last Friday 25th August, 2017, “although still tight, the government’s fiscal financing position appears more assured, with domestic liquidity conditions continuing to improve.”

S&P Global has also observed in the report that the country’s economic growth prospects are improving, as a result of which, they said, they were revising their “outlook on Zambia to stable from negative and affirming the ratings at ‘B/B’.”

 

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