Minister of Finance Dr. Bwalya Ngandu has confirmed that following the outbreak of COVID-19 across the globe, Zambia’s economy has negatively been affected with global trade slowing down following closure of borders and the lock down in major economies.
Speaking at a media briefing in Lusaka on March 27, 2020 attended by the Zambian Business Times- ZBT, the Minister explained that the reduction in merchandise trade has impacted negatively on revenues particularly for commodity exporting economies like Zambia and the cancellation of flights by major carriers which has further impacted negatively on trade in services such as tourism.
He disclosed that in view of the recent developments, Gross Domestic Products – GDP growth rate has been revised downwards from 3.2% to around 2%. This is despite the anticipated significant recovery in the agricultural sector.
Dr. N’gandu stated that tourism, mining, manufacturing, construction and retail trade sectors are projected to slow down adding that the full extent of COVID 19 impact will depend on the severity and duration of the pandemic.
“In the case of copper, prices opened the year at US$6,165 per metric tonne but are now at about US$4,754 per metric tonne on Wednesday 25th March 2020, this will negatively affect Zambia’s revenues,” He added.
The Finance Minister said financial markets have not been spared by the pandemic as the international economy has seen investors divesting their funds from traditional assets such as Commodities, stocks in emerging markets, to safe havens and currencies that include the US Dollar, hence has resulted in the US Dollar strengthening against other currencies, including the kwacha.
And in response to the challenges that the country’s economy is facing on COVID-19 threats, Cabinet has approved a COVID-19 contingency and response plan with a budget of about K60 million under the Disaster Management and Mitigation Unit – DMMU.
The Minister added that if the situation persists, government will scale up resource mobilization from the 2020 budget to curb the spread of the disease. As of March 30, 2020, Minister of Health Chitalu Chilufya confirmed at a media briefing that Zambia has recorded 35 cases of COVID-19.
The latest update from the World Health Organization – WHO indicates that over 470,000 confirmed cases have been recorded around the world and more than 20,000 deaths have been reported. The Zambia Public Health Institute has been actively engaged to spearhead the fight against #COVID19
