Zambian Finance Minister says Economy will Rebound

LUSAKA, 6 JUNE (Xinhua) – The Zambian Government expressed optimism on Wednesday that the economy of the country will recover as the current economic downturn is temporary.

Situmbeko Musokotwane, Minister of Finance and National Planning said that the economy will rebound as Zambia experiences expansions and attracts investments in different sectors of the economic system.

The minister stated that the projection of economic growth for this year was reduced to 2.7 per cent, from 4.7 per cent, due to challenges such as unstable foreign exchange rates and droughts caused by climate changes.

He said that the government was implementing strategic interventions to restore macroeconomic stability and enhance economic efficiency, as well as boost private sector-led growth through increased investments.

“I would like to reiterate the government’s unwavering dedication to collaborating and supporting the private sector. Musokotwane stated that Zambia’s success depends on your growth and your ability to take advantage of upcoming investment opportunities.

He expressed his optimism that the debt restructuring process would be completed before the end this year. Bondholders had agreed to extend repayment terms.

He said that the government is in discussions with commercial creditor.

Ashu Sagar is the president of Zambia Association of Manufacturers. He urged the Government to remove some of the bottlenecks that are preventing the growth of manufacturing, including the delayed refund of value-added tax and the manufacturing corporation tax which stands at 30%.

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