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Thursday, 28 March 2024
Friday, 26 Jun 2020 12:00 pm

Zambia sees 2020 expenditure up $1.1 bln as kwacha falls

Zambia’s expenditure is expected to rise by approximately 20 billion kwacha ($1.11 billion) this year as the local currency weakens, piling more pressure on a nation already struggling with huge debt, President Edgar Lungu said on Thursday.

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External debt service will rise by 8.7 billion kwacha because of a sharp fall in the currency, Lungu said in a national address.

Zambia has $3 billion of Eurobonds outstanding and owes $2 billion to commercial banks, $2 billion to the International Monetary Fund and World Bank, and a further $3 billion to China.

The kwacha has weakened more than 28% against the U.S. dollar so far this year, with the central bank in May attributing the depreciation to macroeconomic challenges associated with debt service and debt levels.

Economic activity in Africa’s second-largest, copper-producing nation has also been hurt by the coronavirus crisis.

Lungu announced the reopening of all international airports to revive tourism after closures in March hit the sector.

Zambia has registered 1,497 coronavirus cases and 18 deaths, Lungu said.

Zambia is reviewing its 2020 budget after a reduction in revenue as a result of the coronavirus pandemic and other factors, Secretary to the Treasury Fredson Yamba said.

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Neha Pandey

Aware of her elements, Neha writes the best articles across industries including electronics & semiconductors, automotive & transportation and food & beverages. Being from the finance background she has the ability to understand the dynamics of every industry and analyze the news updates to form insightful articles. Neha is an energetic person interested in music, travel, and entertainment. Since past 5 years, she written extensively on sectors like technology, finance and healthcare.


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