WE’LL TAKE ADVANTAGE OF THE OPEN DOOR GRANTED TO ZAMBIA BY THE AMERICAN PUBLIC AND THE GLOBAL COMMMUNITY, MUSOKOTWANE
Finance and National Planning Minister Dr Situmbeko Musokotwane, MP, has described the Zambian delegation’s first day, Monday, at the ongoing 2024 Spring Meetings of the International Monetary Fund and the World Bank Group in Washington DC, USA, as engaging, productive and an open door granted to Zambia by the Bretton Woods Institutions (IMF and World Bank Group), the American public, and the global community, to market her investment potential and natural resource endowments.
“During our assignment here, we have to take advantage of the open doors granted by our partners and the rest of the global community to promote investments in economic sectors in which we have a competitive edge in the region and the greatest potential to sustain Zambia on a strong path of economic transformation and growth. This will also aid in the attainment of our value-chain, wealth creation, citizen empowerment and poverty reduction goals in all regions of the country,” Dr Musokotwane told his delegation at a briefing meeting on assignments for the day.
Dr MUSOKOTWANE is accompanied to the Spring Meetings by Secretary to the Treasury FELIX NKULUKUSA, Bank of Zambia Governor Dr DENNY KALYALYA, Acting Permanent Secretary (Budget & Economic Affairs) MWAKA MUKUBESA, Zambia Revenue Authority Commissioner General DINGANI BANDA and Bank of Zambia Deputy Governor (Operations), Dr FRANCIS CHIPIMO. Zambia is also being represented at the Global Parliamentary Forum being held on the sidelines of the Spring Meetings by Honourable FRED CHIBULO CHAATILA, MP, Chairperson of the Zambian Parliamentary Planning and Budget Committee, and Honourable DAVIDSON MUNANGANDU, MP, Member of the Zambian Parliamentary Committee on National Economy, Trade and Labour.
Meanwhile, IMF Managing Director KRISTALINA GEORGIEVA, the World Bank’s International Finance Corporation Managing Director MAKHTAR DIOP, World Bank Managing Director for Operations ANNA BJERDE, US Treasury Under Secretary JAY SHAMBAUGH, Angola’s Minister of Finance VERA DAVES DE SOUSA, and US Chamber of Commerce President for the US-Africa Business Center KENDRA GEITHER, among others, took opportunities of their separate meetings with the Zambian delegation to congratulate and commend the country for the positive developments in the debt restructuring process.
IMF
During the IMF-Zambia bilateral meeting, Monday evening, Ms Georgieva congratulated Zambia for reaching an agreement with bondholders, further indicating that the country’s progress was a major milestone under the G20 common framework. The IMF Managing Director encouraged Zambia to remain on the path of economic transformation despite the challenges posed by climate change, and other shocks.
“You have so many reforms in place and in the right direction, Zambia is going to do great,” Ms Georgieva observed.
At the meeting, Dr Musokotwane delivered fraternal greetings from His Excellency the President of the Republic of Zambia Mr. HAKAINDE HICHILEMA to the leadership of the IMF for massively supporting the country during difficult and challenging times as the Government strove to attain debt restructuring. He paid tribute to the IMF for the role played together with other stakeholders and partners.
The Minister also took the opportunity to congratulate Ms Georgieva for her renewed term office as Managing Director of the IMF. He appealed to the IMF to continue helping Zambia in positively marketing the unfolding economic transformation landscape – attested by the strong growth registered in the fourth quarter of 2023, which resulted in a 5% annual GDP growth.
The Minister also briefed the IMF on measures being undertaken by the Government to mitigate the food supply negative impact of drought on citizens. He indicated that power challenges may have a dent on industrial productivity but affirmed that the Government will maintain its focus on strong growth and ensure that, through good governance practices, the country’s credit rating goes back on the positive upward trajectory.
US Treasury
Meanwhile, during the US-Zambia bilateral meeting, Monday, US Treasury Under Secretary JAY SHAMBAUGH conveyed the US Government’s appreciation of how Zambia has been able to remain resilient under difficult circumstances.
Responding to a question on the debt restructuring process, Dr Musokotwane indicated that 77 percent of eligible debt has been negotiated while another 23 percent has to be negotiated, mostly with commercial creditors. To improve resource mobilisation, he stated, the Government, through ZRA, is in the process of appointing fiscal agents. The Minister announced that a meeting with bond holders will soon be convened with a view of concluding the process as soon as possible.
The US Treasury Under Secretary took the opportunity to state the American Government’s willingness to help combat economic crimes and promote interagency coordination. On the Lobito corridor project, Mr. Shambaugh reiterated the will to push the agenda as quickly as possible through a Public Private Partnership (PPP) route.
US Chamber of Commerce
Meanwhile, during the US Chamber of Commerce roundtable discussion on the economic and fiscal outlook for Zambia held on the side-lines of the ongoing Spring Meetings of the IMF and World Bank Group, Monday, US Chamber of Commerce President for the US-Africa Business Center KENDRA GEITHER specified the Importance of good leadership in establishing partnerships and conditions that are attractive to investment. She congratulated Zambia for the progress made in debt restructuring through the strong and focussed leadership of President HAKAINDE HICHILEMA.
Ms GEITHER observed that although not many countries are currently recording strong performance, the Zambian economy had shown signs of resilience, adding that, the debt restructuring process had now put the country on strong footing.
“To commit the Government to a plan and agenda for reform says a lot about the leadership of President HICHILEMA and your team,” said Ms GEITHER. Good leadership is vital in creating economic conditions and opportunities for trade and investment to take place and for the work that the Zambian Government is doing in partnering with regional leaders to development infrastructure, agriculture, digital advancements, and the Lobito corridor.
During the roundtable, the Minister also took the opportunity to brief the high-level industry delegates on the performance of the Zambian economy, recent developments, and measures put in place to facilitate trade and investment through legislative realignment, and steps taken to facilitate the ease of doing business and good economic governance.
Dr MUSOKOTWANE appealed to the American private sector to invest more in Zambia by taking up prospects in mining, agriculture, tourism, value chain development, the green economy and digital infrastructure, through direct investments or public private partnerships.
Issued by:
(Original Signed)
Office of The Secretary to the Treasury
MINISTRY OF FINANCE AND NATIONAL PLANNING