Q FM Africa's Modern Radio
Finance Minister Felix Mutati
The International Monetary Fund (IMF) says striking the right balance between debt contraction and investment is one of the most critical economic challenges facing African countries including Zambia.
Speaking in Lusaka during the Africa Fiscal Forum under the theme “Fiscal Policy in an Evolving World”, IMF African Department deputy Director, Roger Nord has also observed that debt levels in many countries have risen with relatively high growth often reflecting ambitious infrastructure investment programs.
He says Infrastructure investment if well executed has potential to spur economic growth and private sector development needed for job creation.
Mr. Nord however, states that if not used properly, debt becomes a burden rather than an engine for development.
He says fiscal policy at the centre of the forum’s debate faces the dual task of increasing the efficiency of public spending while expanding fiscal space by mobilizing more domestic revenue.
Officiating at the forum, Finance, Felix Mutati reiterated that the Zambian economy is sound and stable.
Mr. Mutati has attributed this to the economic recovery program dubbed Zambia Plus.
The program is designed to help Zambia restore its GDP growth, currently standing at 3%, which is below the 7% levels required to reduce poverty and to drive Zambia’s development.
And European Ambassador to Zambia, Alessandro Mariani has reaffirmed the EU’s commitment to supporting policies that contribute to structurally reduce the dependence of developing countries on external assistance.