Washington Spring Meetings Begin Well for Zambia, Says Finance Minister

Minister for Finance and National Planning, Dr. Situmbeko Musokotwane, has concluded the first day of the International Monetary Fund (IMF) and World Bank Group (WBG)’s 2023 Spring Meetings. Musokotwane summarised the Spring Meetings as “engaging, reassuring and a healthy platform for consolidating Zambia’s attractiveness as one of Africa’s best reformers and investment destinations.” 

The day’s meetings included the Finance Minister convening with the IMF, WBG, and IMF Executive Directorates such as Japan, the Netherlands and Belgium. Dr. Musokotwane discussed Zambia’s economy, infrastructure and development through public private partnerships, implementing the IMF Enhanced Credit Facility Programme, and reaching a sustainable debt status via the near-finished G-20 Common Framework. Dr. Musokotwane confirmed that “meetings have started on a good note for Zambia”.

The Finance Minister has also tabled solutions to the food shortages that Zambia and many African nations endured in 2022. He said that supply chains had been discussed that would “improve the productivity of small-scale farmers, but also attract large scale capital, technology and skills”. Dr. Musokotwane explained that this would ensure “that more agro-based jobs are created for our citizens; wealth circulates in communities via out-grower ventures; and, that the yawning market is flooded with Zambia produced food in the near-term”.

Dr. Musokotwane thanked WBG for the organisation’s consistent aid in Zambia’s development, and especially “the support in rehabilitating TAZAMA pipelines and enabling the country to start importing finished petroleum products”.

Zambia has set itself the task of increasing mining production from less than 900,000 tonnes to more than 3 million per annum by 2032. In order to achieve this while maintaining the usability of major roads, the Finance Minister requested that the WBG provide technical assistance for railway infrastructure through public private partnerships. Dr. Musokotwane said that these would help establish reliable export passages for goods from the mining regions of Zambia and the Democratic Republic of Congo.

WBG Vice President for East and Southern Africa Dr. Kwakwa said that the socio-economic outcome from investment in core Zambian sectors would be more jobs, better standards of living and further growth of Zambia’s economy. She said, “We call on Zambia to adopt a balanced approach in promoting commercial and small-scale farming ventures to ensure that the country benefits from the best of both worlds”.

Dr. Kwakwa praised Zambia for removing its maize import duty, a move that guaranteed affordable food for Zambians during challenging times. She also clarified that the WBG was eager to offer public private partnership assistance to accelerate the expansion of the regional trade export corridor.

Dr. Musokotwane has also made inquiries in his meetings with the IMF’s Executive Directorates as to the timeline for Zambia’s debt restructuring process. He pointed out that the process had been forecasted to be finalised by March 2023, and that, despite Zambia reaching all required targets, there had been no progress from the creditors’ side. “We call on all creditors to continue their respectable processes of moving towards the signing of the memorandum of understanding on the debt restructuring process,” he said. The Finance Minister also briefed the Executive Directors on Zambia’s performance under the IMF partnership Enhanced Credit Facility Programme, described as exceptional by the IMF’s Mission Chief for Zambia Allison Holland on a recent staff visit. 

The Spring Meetings of the IMF and WBG began on Monday, April 10, and will end on Sunday, April 16.