EAZ confident Zambia will not default on debt payments

THE Economics Association of Zambia has re-iterated its positive economic outlook for Zambia giving assurance to the Federated Investors (FI) whose fund comprises of emerging market fixed income assets to include Zambia’s foreign currency denominated Eurobonds and kwacha assets, that the country will not default on its obligations whatsoever when they fall due. The EAZ stated that Zambia’s macroeconomic fundamentals remain bullish and solid despite structural issues on account of balance sheet vulnerabilities as a consequence of debt sustainability concerns. It cited Infrastructure spending as the major contributor to the current debt position which Zambia is addressing through its medium term expenditure framework as the Ministry of Finance seeks to restore the nation to fiscal fitness. The association added that Zambia has continued to be an attractive investment hub as evidenced by an influx of investment projects post successful hosting of investment expos aimed at achieving the requisite visibility for opportunities. The EAZ added that it is of the view that Zambia needs to get onto an IMF programme, aligned with the nation’s economic stabilisation and growth initiatives which will then boost both local and foreign investor confidence. This came to light when Standard Chartered Bank Chief Economist for Africa and Middle East Global Research– Razia Khan and Federated Investors (UK) LLP (a privately owned investment manager based in London) – Portfolio Manager for Emerging Markets Fixed Income (EMFI) Mohammed Elmi met with the EAZ at Hotel Intercontinental in Lusaka to discuss the economic outlook for Zambia. Accompanying Khan was Executive Head of Treasury for Zambia and Southern Africa Mwaba Kabwe and Head of Global Banking for Zambia Emmanuel Banda. The EAZ was represented by its president Dr. Lubinda Habazoka, national secretary Mutisunge Zulu, Executive director Mirriam Nachilima and ZIPAR senior research fellow Caesar Cheelo. The first ever economic summit will be held in Livingstone mid-year of 2019 at which various economists and related fields will be expected to convene to present papers that will help in building the economy.