We welcome the announcement of an IMF program. This demonstrates the confidence that the international community has in Zambia’s ability to turn the page from unsustainable debt to prosperity and growth. To the public and our creditors, we will not disappoint! 🇿🇲
Congratulations to 🇿🇲 President @HHichilema & his team on the $1.3 billion IMF program approved by the IMF Board today.
We’re proud to support Zambia’s homegrown reforms and actions to help build a better future for all Zambians. bit.ly/3CPD00H
I’m pleased to announce that the govt & IMF have reached a staff level agreement on a programme under the IMFs Extended Credit Facility.
On Monday I will have a joint press briefing with IMF mission chief, Allison Holland during which details will be provided + a Q&A.
An important milestone for #Zambia today: we have reached an agreement on a comprehensive debt treatment with our Official Creditors under the G20 Common Framework. This marks a significant step towards restoring Zambia's long-term debt sustainability and economic growth.
🇿🇲
Today #Zambia has reached an agreement on a debt treatment with our official creditors – a significant milestone in our journey towards economic recovery & growth. On behalf of the people of Zambia, I thank our official creditors for their continued engagement & support. 🇿🇲
I have indeed apologized.
However, when I spoke of youth in that instance, I was talking about the young ones in primary & secondary schools. The vast majority of whom have to walk unacceptable distances to schools where they sit on the floor in thatched classrooms.
I will give a ministerial statement on debt restructuring progress, the IMF supported program and other economic matters tomorrow in the National Assembly.
Several other media events will take place thereafter. Please take note of the calendar below.
I can confirm that we are still very much on track. Having reached the staff level agreement, we are making good progress towards attaining the IMF board level agreement.
I’ll be giving a status update on progress tomorrow in the National Assembly.
Keeping with football as an example for economics. I’d like to address the importance of investment.
The world’s best football clubs are generally incorporated as either companies (owned as businesses) eg Arsenal or as cooperatives (owned by members of the club) eg Real Madrid.
In football terms:
If in the 2019-2020 season the cost to buy a player was $100 but in the 2020-2021 season it was $110; then annual inflation was 10% in that season. If in the 2021-2022 season the price was $115.5; then annual inflation in that season was 5%.
The issue of inflation dropping yet prices are still high is not what it sounds like.
The low inflation means that the rate at which the price of commodities is increasing has reduced. The prices are increasing, but at a slower rate compared to the same period last year.
Addressing this:
As you will know I have not made it a habit to speak to the past when dealing with the economic issues at hand.
We’ve put in a lot of work to remedy the problems, and progress has been made in this regard. Especially regarding debt restructuring and reform.
This is super cool. The Zambian Ministry of Finance and National Planning has published detailed updated debt figures through June 2021 broken down by creditor. You can view here: mof.gov.zm/?wpfb_dl=378.
This level of transparency and communication is exactly what we need.
