Zambia faces a severe drought that has significantly impacted agriculture and electricity generation and affected a substantial share of the population, leading the President to declare it a national disaster emergency and plan a revision of the 2024 Budget. Despite these challenges, the government remains focused on supporting macroeconomic stability, restoring fiscal and debt sustainability, and addressing humanitarian needs. The government continues to work with its external creditors to restructure its debt in line with program parameters. While mobilizing external financing, exchange rate flexibility will help manage balance-of-payment pressures. Enhancing regulatory frameworks and financial oversight is crucial for financial stability and inclusion, with efforts to improve governance and advance structural reforms continuing to enhance growth.
- Format
- Paper
- Frequency
- regular
- ISBN
- 9798400279997
- ISSN
- 1934-7685
- Pages
- 140
- Published in
- United States of America
- Series
- Country Report No. 2024/190
- StockNumber
- 1ZMBEA2024001
Table of Contents
- Zambia - 2024 - Third Review Under the ECF Arrangement - Staff Report - for Publication - June 26 Final Version 6
- CONTEXT 10
- RECENT ECONOMIC DEVELOPMENTS 10
- program performance 13
- OUTLOOK AND RISKS 14
- policy discussions 15
- A. Ensuring Fiscal and Debt Sustainability 15
- B. Safeguarding Price and External Stability in the Context of an External Shock 21
- C. Strengthening Financial Policies 22
- D. Advancing Structural Reforms to Increase Economic Growth 24
- program modalities and other issues 25
- staff appraisal 28
- A. Fiscal Policy 67
- B. Fiscal Structural Reforms 70
- MOBILIZING REVENUES 70
- ENHANCING EXPENDITURE EFFICIENCY 71
- IMPROVING PUBLIC FINANCIAL MANAGEMENT 73
- ENHANCING FISCAL TRANSPARENCY AND REPORTING FISCAL RISKS 74
- ENERGY REFORMS 75
- RESTORING DEBT SUSTAINABILITY AND IMPROVING DEBT MANAGEMENT AND TRANSPARENCY 77
- C. Enhancing Monetary and Exchange Rate Policies 78
- D. Strengthening Financial Policies to Safeguard Financial Stability 80
- E. Scaling Up Structural Reforms to Promote Higher and More Inclusive Growth 82
- A. Floor on the Central Government’s Primary Balance (Cash Basis) 96
- DEFINITION 96
- REPORTING 97
- ADJUSTORS 97
- B. Ceiling on New Central Bank Credit to the Central Government 97
- DEFINITION 97
- REPORTING 97
- C. Floor on the Net Official International Reserves of the Bank of Zambia 98
- REPORTING 98
- ADJUSTOR 99
- D. Ceiling on New External Debt Arrears by Central Government, the Bank of Zambia, and ZESCO 100
- DEFINITION 100
- REPORTING 100
- E. Ceiling on the Contracting or Guaranteeing of New Non-Concessional External Debt by Central Government, the Bank of Zambia, and ZESCO 100
- DEFINITION 100
- REPORTING 102
- F. Other Continuous Quantitative Performance Criteria 102
- G. Floor on the Fiscal Revenues of the Central Government Excluding Grants and Mining Revenues 102
- DEFINITION 102
- REPORTING 103
- H. Ceiling on the Present Value of New External Borrowing 103
- DEFINITION 103
- REPORTING 103
- I. Ceiling on the Disbursement of Contracted but Undisbursed External Debt to Central Government And ZESCO 103
- DEFINITION 103
- REPORTING 104
- J. Floor on Social Spending by the Central Government 104
- DEFINITION 104
- REPORTING 104
- K. Floor on the Net Clearance of Expenditure Arrears and Floor on Net Clearance of Tax Refund Arrears by Central Government 104
- DEFINITION 104
- REPORTING 105
- Zambia - 2024 - Third Review Under the ECF Arrangement - Pre-restructuring DSA - for Publication - June 26 108
- PUBLIC DEBT COVERAGE 109
- background on debt 110
- MACROECONOMIC ASSUMPTIONS 113
- COUNTRY CLASSIFICATION AND DETERMINATION OF SCENARIO STRESS TESTS 120
- EXTERNAL dsa ASSESSMENT 121
- public DSA Assessment 121
- risk rating and vulnerabilities 121
- AUTHORITIES' VIEWS 125
- Zambia - 2024 - Third Review Under the ECF - Staff Supplement to the Staff Report 135
- Zambia - Buff statement by Mr. Nakunyada and LM to be issued 136
