RISING COPPER PRICES A PLUS FOR ZAMBIA - IMF
THE International Monetary Fund (IMF) is confident that the recent sharp increase in copper prices will provide additional resources to help smooth the adjustment of the fiscal consolidation for Zambia.
A tonne of copper on the London Metal Exchange is currently trading around US$9,101
Last month, the most-traded March copper contract on the Shanghai Futures Exchange gained as much as 4.7 percent to US$9,747.29 a tonne, a level not seen since September 2011.
David Robinson, who led an IMF staff team for virtual meeting with Zambia, banked on the attractive copper prices to assist the
country as it struggled with fiscal consolidation.
“The recent sharp increase in copper prices should also provide additional resources to help smooth the adjustment.
“Significant progress has been made and discussions are expected to continue in the next few weeks, following additional technical work on the appropriate policy package,” Mr Robinson said in a statement.
This was after the virtual meetings which took place between February 11 and March 3, this year.
He said resolving the macroeconomic challenges would require support to the population and the economy through the pandemic in a constrained fiscal environment.
Mr Robinson said this could be done while setting the stage for a sustained recovery as the impact of Covid-19 eased and macroeconomic imbalances are resolved.
“The Economic Recovery Program lays out the government’s broad policy directions and discussions sought to map that strategy into more detailed policy steps.
“Key challenges that need to be addressed include:
detailing the fiscal reform agenda to achieve the large and sustained fiscal consolidation needed to correct current fiscal imbalances; securing increased fiscal revenues to provide the fiscal space for government to meet its development objectives,” he said.
IMF staff held meetings with Finance Minister Bwalya Ng’andu, Bank of Zambia Governor, Christopher Mvunga, senior government and Bank of Zambia officials, members of the Budget and Public Accounts Committees of Parliament and other stakeholders.