Q FM Africa's Modern Radio
ZANACO has projected a positive economic outlook for the country for 2019 and 2020 with growth forecast for 2019 expected at 4.1 percent.
Speaking at the end-of-year economic review breakfast meeting in Lusaka, bank Head Economic Researcher, Patrick Chileshe says in 2020 economic growth is projected at 4.3 percent.
And Dr. Chileshe has revealed that the Kwacha was one of the worst performing currencies in Africa in the third quarter of 2018 because of negative sentiments such as the purported takeover of the running of ZESCO and other parastatals by China.
Dr. Chileshe says economic activities deteriorated in the third quarter of 2018 mainly due to the drop in commodity prices, high exchange rate volatility and build up in arrears.
He says 2018 economic growth is expected at 3.8 percent from the earlier forecast of 4.3 percent.
Dr. Chileshe says risks to growth include trade wars between the United States of America and China, failure to unbundle arrears and projected poor rainfall by the meteorological department.
He adds that other risks include tight global financial conditions, failure to resolve fiscal challenges and the reintroduction of the Sales tax to replace VAT.
Speaking earlier, ZANACO managing director and chief executive officer, Henk Mulder says one of the major highlights of the year for the bank was being declared the best bank in Zambia at the 2018 Euromoney awards for excellence.
Mr. Mulder the prestigious award is a demonstration of the sound business model and strategy the bank implemented in the year ending 2018.
He states that the bank has continued to deliver on its medium-term plan to be the top transactional bank in Zambia by 2020.
And Mr. Mulder says the new regulatory changes regarding the prohibition of certain bank charges by the Bank of Zambia pose a challenge on the entire banking sector.