Q FM Africa's Modern Radio
Margret Mwanakatwe
Standard and Poors on Friday, affirmed Zambia’s rating at B with a stable outlook with Finance Minister Margaret Mwanakatwe saying this is a very important assessment of the country’s economy.
Ms Mwanakatwe says the rating outcome is also a confirmation that Zambia’s Economic Stabilization and Growth Programme is firmly grounded and is producing positive results as recently confirmed by other independent agencies such as Moody’s investor service and Fitch ratings.
Ms Mwanakatwe states that the rating outcome by Standard and Poors demonstrates the international community’s recognition of Government’s strong commitment to the implementation of the economic stabilization and growth reforms, which are targeted at continued macroeconomic stability, fiscal consolidation, and a corresponding accommodative monetary policy stance.
She says Government will continue sustaining this positive performance and will address the outstanding structural, quantitative, and policy reforms that are needed for the country to remain on the right track and consolidate the current gains in the economic stabilisation and growth journey.
She adds that to demonstrate the positive impact of the reform actions, the first bond auction on Government securities for 2018 was last week oversubscribed.
Ms Mwanakatwe has disclosed that Government towards the end of last week went in the domestic market to raise K1.65 billion but, gladly, both domestic and foreign bond investors placed bids totaling K3.35 billion – leading to an over subscription of one-hundred-and-three percent.
The Finance Minister says her Ministry working with the Bank of Zambia, will focus on addressing high lending rates as they are a binding constraint to economic growth.
Ms Mwanakatwe furthermore states that Government will work diligently to ensure that the confidence of the people and that of investors in good intentions to stabilize and grow the economy, are not taken for granted.
She says government will endeavour to remain focused, firm, and committed to the implementation of the reform and transformational agenda so that the gains in economic stabilisation are protected through enhanced fiscal consolidation and sustained inclusive growth; without leaving anyone behind.