LIMITING external borrowing is key in stabilizing Zambia’s economy, says the Civil Society for Poverty Reduction.
CSPR executive director Patrick Nshidano says managing external borrowing and keeping a watchful eye on public expenditure can ease the country’s economic woes.
Mr Nshidano said he was hopeful that with the necessary measures put in place by Government in addition to positive developments on the international market, Zambia’s economy will stabilize this year.
“There’s a possibility for Zambians that if we do the right thing, especially watching our expenditure and ensuring we do not grow our budget deficit, to get back on the right path to recovery which will take a lot of discipline on the part of Government,” Mr Nshidano said. Mr Nshidano added that Zambians should foresee not in the short term but the medium term the recovery of copper price.
“As a result of that recovery we except there will be more revenue coming into the country and more foreign exchange that will ease pressure on our currency which will as a result cause the inflation to go down,’’ he said.
Zambia’s economy struggled in 2015 largely influenced by the international economic downturn which in turn hit the Kwacha
which declined in value in comparison to other currencies.