Zambia’s economic growth rate in 2020 is expected to be above 3% and is expected to continue to grow despite the current challenges that have led to a high cost of living. This is because of the improved prospects in the energy and agro sectors.
Finance Minister Dr. Bwalya Ng’andu revealed that risks to the medium-term growth projection relates to climate change, ineffective implementation of fiscal consolidation measures and uncertainty in the global economy.
Zambia’s economy has been affirmed as one the fastest growing economies in Africa based on its copper-mining industry and that the aggressive infrastructure drive is expected to provide the base from which future economic growth will be anchored from.
The finance minister announced that Zambia’s economy is expected to continue to grow in 2020 and continue with this momentum in the medium term on grounds that government is implementing measures that will enhance revenue collection, return the country to debt sustainability and onto the path of recovery.
Speaking when he addressed the nation on the country’s economy in Lusaka on February 12, 2020, Dr. Ng’andu said the fiscal deficit is expected to be narrowed to around the projected 5.5 percent of GDP and this will be on account of measures government is undertaking to enhance revenue collection as well as deal with the debt portfolio.
“The Ministry will also give special focus in 2020 to funding social sectors particularly pensions, social cash transfer, health and education sectors whose allocation in 2019 was not fully met. Further the ministry will focus efforts at domestic arrears dismantling,” he said.
The year 2019 was challenging economically with GDP growth revised down to 2 percent from an initial projection of 4 percent and this was attributed to adverse weather conditions, low agriculture output and low electricity generation.
Analysts however have called for the GDP growth rate of over 7% for it to have an effect on reducing poverty levels and drive wealth creation. The copper mining industry is the low hanging fruit that would be tapped to drive the growth rate but the impeding elections in 2021 are also said to be impending some investments.
