The Zambian economy is projected to expand by a meager 2.7% in 2023 compared to 4.7% growth in 2022, the country's ministry of finance budget plan showed, with contractions in mining and energy expected to drag on growth.
Zambia recently concluded a long-delayed debt restructuring program with the IMF after defaulting on its sovereign debt in 2020. The IMF said the program is expected to save Zambia $7.65 billion by 2026.
The budget plan envisions Zambia's economy growing by 4.8% in 2024, 4.3% in 2025 and 5% in 2026 backed by improvements in macroeconomic conditions and reforms.
Secretary to the Treasury Felix Nkulukusa said there is increasing confidence in Zambia as it works to restore fiscal sustainability.
Zambia's external debt stood at $20.9 billion by end-2022. The budget figures show debt service payments of 117.4 billion kwacha ($6.24 billion) or 16.5% of GDP over the medium term.
Zambia and the IMF completed the first review of Zambia's $1.3 billion extended fund facility program. The IMF board approved an immediate disbursement of $189 million to Zambia last week.
Zambia also plans to sign a deal to restructure additional debt with private creditors by the conclusion of the IMF's second review later this year.
Copper production, a major export commodity, is projected to fall to 682,431 tones in 2023 compared to 763,550 tones in 2022, the budget document showed.
