Browsing: Drought in Zambia

Zambia

Zambia secures $184M IMF support as economic growth set to decline to 1.2 per cent

Africa
  • Drought-hit Zambia will get immediate access to about $184 million from the IMF.
  • Lender says authorities in the southern African country remain committed to maintaining macroeconomic stability and restoring fiscal and debt sustainability.
  • Worsening impact of drought is, however, set to see Zambia’s economy decline to 1.2% growth this year.

Zambia has secured about $184 million from the International Monetary Fund (IMF) to provide budget support to the southern African country that is reeling from adverse effects of drought, which now threatens to see the economy grow by marginal 1.2 per cent this year.

The funding brings Zambia’s total disbursement under its 38-month Extended Credit Facility ECF-supported program to SDR 992.86 million or about $1.3 billion.

According to the IMF Deputy Managing Director Nigel Clarke, policymakers in the country must implement a number of reforms to drive resilience in the face of looming economic slowdown.

“Governance and structural reforms are …

Zambia’s solar energy drive: Fighting rural energy poverty with renewable options

Countries
  • Through PPPs, smart financing models, and new policies, Zambia is positioning itself as a leader in renewable energy.
  • The government’s commitment to achieving universal electricity access by 2030 underpins Zambia's solar revolution.
  • One of the flagship projects is the 600MW Scaling Solar Zambia, an alliance between the government and the International Finance Corporation (IFC).

Landlocked Zambia is making a spirited push to compete favourably among African economies by tapping the power of solar energy to light up rural homes and drive industry.

With more than 70 per cent of its population living in areas where access to electricity remains a distant dream, Zambia’s solar energy drive is a beacon of hope, offering sustainable and renewable energy solutions to combat energy poverty.

This ambitious initiative is about more than electrifying homes; it’s about transforming lives, driving economic growth, and safeguarding the environment.

Through public-private partnerships, innovative financing models, and policy frameworks,…

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Zambia’s economic outlook for 2024 worsens as key sectors contract—IMF

Countries
  • Zambia’s economic growth projections have dropped to 1.2 per cent, down from an earlier estimate of 2.3 per cent.
  • Key sector agriculture has shrunk by over 20% YoY even as energy output dropped by nearly 10%, affecting electricity supply.
  • Compounding the challenge, inflation in Zambia rose sharply, reaching 15.7% in October 2024.

Zambia’s economic outlook for 2024 has suffered a downturn, with the main sectors facing substantial contractions that could weigh on the South African country’s overall recovery.

According to the latest review by the International Monetary Fund (IMF), Zambia’s economic growth projections have dropped to 1.2 per cent, down from an earlier estimate of 2.3 percent. This is largely due to wide-ranging electricity shortages and declining activity across critical industries such as agriculture and energy.

After completing the IMF review, Zambia will access about $185.5 million in financing (SDR 139.9 million) for budgetary support in a tough economic year.…