Latest news with #SitumbekoMusokotwane
TimesLIVE
7 hours ago
- Business
- TimesLIVE
Zambia wants to extend IMF loan programme by 12 months
Zambia's government wants to extend its International Monetary Fund (IMF) programme another 12 months beyond its current expiry at the end of October, a cabinet statement said on Wednesday. The copper-rich Southern African nation has been trying to get its public finances back on track with IMF support after running up a huge debt pile. Its 38-month extended credit facility was approved in August 2022 for an initial $1.3bn (R23.54bn) but was later increased to $1.7bn (R30.78bn). So far about $1.55bn (R28.06bn) has been disbursed. The cabinet statement said finance minister Situmbeko Musokotwane had been authorised to ask the IMF for the 12-month extension. "The objective is to consolidate the gains achieved during the programme period into 2026" and help support economic reforms, the statement said.
Reuters
a day ago
- Business
- Reuters
Zambia wants to extend IMF loan programme by 12 months
LUSAKA, July 30 (Reuters) - Zambia's government wants to extend its International Monetary Fund programme another 12 months beyond its current expiry at the end of October, a cabinet statement said on Wednesday. The copper-rich Southern African nation has been trying to get its public finances back on track with IMF support after running up a huge debt pile. Its 38-month Extended Credit Facility was approved in August 2022 for an initial $1.3 billion but was later increased to $1.7 billion. So far about $1.55 billion has been disbursed. The cabinet statement said Finance Minister Situmbeko Musokotwane had been authorised to ask the IMF for the 12-month extension. "The objective is to consolidate the gains achieved during the programme period into 2026" and help support economic reforms, the statement said. A finance ministry spokesperson declined to elaborate when contacted by Reuters. Zambia defaulted on its external debt in 2020 after years of unsustainable borrowing but battled its way to a restructuring deal with its primary creditors last year. It is still seeking to agree restructuring terms with smaller creditors including Afreximbank. The IMF's board last week approved a $184 million disbursement to Zambia after completing the fifth programme review.
TimesLIVE
27-06-2025
- Business
- TimesLIVE
Zambia seeks approval for $1.4bn additional budget spending
Zambia's finance minister Situmbeko Musokotwane asked parliament on Thursday to approve an additional 33.6-billion kwacha (R25.45bn) of spending this year, saying the original amount budgeted for was insufficient. Musokotwane said about 33% of the new spending would be allocated to clearing fuel arrears, 24% would go on increased debt payments and 18% would be used to support the agricultural sector. Other allocations will be made for social services and education. The spending would mainly be financed by more domestic borrowing, cost-cutting on other items and new taxes, he said. Southern African copper producer Zambia defaulted on its sovereign debt in 2020. It has since been in restructuring negotiations with its overseas creditors as it tries to get its public finances back on a stable footing. Parliament's budget committee will give its view on the government's supplementary spending estimates by July 1.
Bloomberg
26-06-2025
- Business
- Bloomberg
Zambia to Borrow Extra $624 Million From Domestic Market in 2025
Zambia will borrow an additional 14.8 billion kwacha ($624 million) from the domestic market to cover a bigger-than-expected shortfall in this year's budget, Finance Minister Situmbeko Musokotwane said. The copper-rich southern African nation will also raise 4.9 billion kwacha in additional taxes, most of which will come from unspecified new revenue measures, he told lawmakers on Thursday.
Business Insider
10-06-2025
- Business
- Business Insider
Zambia projects strongest economic growth in four years
Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. Zambia's economy is expected to grow by at least 6% in 2025, the strongest expansion since 2021, driven by increased copper production and improved rainfall. Zambia has emerged from a lengthy debt restructuring process, aiding growth prospects and bolstering returns for creditors. The Zambian kwacha has become Africa's second-best performing currency against the US dollar in 2025, aided by easing inflation and lower food prices. Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. He disclosed this on the sidelines of Bloomberg's annual Africa Business Media Innovators conference. According to Musokotwane, the rebound is driven by improved rainfall and increased copper production. Musokotwane had mentioned earlier this year that the country is banking on its mining industry for an economic recovery. Zambia, Africa's second-largest copper producer, experienced a significant increase in metal production last year, which accounts for more than 70% of the country's export earnings. Next year Zambia hopes to increase copper production to around 1 million tons, and eventually, to 3 million tons. "If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward," he said in January. This economic upswing comes as Zambia emerges from a protracted debt restructuring process. The stronger growth outlook boosts prospects for higher returns to creditors, including bondholders. Musokotwane is 'confident that we will get to that 6%,' he said. 'We just need to maintain this for 10, 15 years, positive growth every year. I think people will begin to see that it's not a certainty that you are born in poverty and you will end in poverty. Things can change.' Currency strength and easing inflation offer relief Notably, for the first time in a long time, Zambia's inflation rate is easing, offering the country some much-needed economic relief. At the same time, the kwacha has become Africa's second-best performing currency against the dollar in 2025, gaining 12% after a sharp rally last week. The easing of inflation is largely driven by falling prices of essential food items such as bread and cereals, following improved rainfall that helped mitigate the impact of the country's drought.
