Africa-Press – Zambia. The International Monetary Fund announced that talks with Zambia regarding a new support program have made progress, and negotiations are expected to continue after the general elections in August.
“Maintaining Economic Gains is a Challenge”
The IMF stated, “The authorities have reaffirmed their strong commitment to a Fund-supported program following the elections, which is based on sound macroeconomic policies and fiscal discipline, while protecting social spending and other priority expenditures.”
It noted, following a visit by its staff to Lusaka from April 30 to May 13, that “maintaining recent economic gains poses a major challenge due to this year’s elections and global economic uncertainty.”
It pointed out that financial pressures have intensified this year, and Zambia’s primary surplus is now expected to reach 1.1% of GDP, compared to 3.8% at the time of the final review of the previous support program.
The latest IMF program in the southern African copper-rich nation ended in January, with total disbursements amounting to $1.7 billion, aimed at supporting its exit from a prolonged debt restructuring process.
Zambia Eases Ban on Sulfuric Acid Exports
In a separate context, Zambia’s Minister of Commerce, Chipoka Mulenga, announced that the country has allowed two copper producers to resume sulfuric acid exports to the Democratic Republic of the Congo, as it eased restrictions on mining inputs.
Mulenga explained in a statement to a local source on Thursday that the government has permitted Chambishi Copper Smelter and Mopani Copper Mines to resume shipments of sulfuric acid after local stocks recovered.
He stated that they will export “a limited quantity to ensure that the local market is not adversely affected,” without specifying the amounts.
He noted that Zambia may expand export permits if supply conditions continue to improve, adding that “the resumption of exports reflects an improvement in the availability of materials.”
He continued: “We allowed them to export because local stocks have increased, and these companies have miners that need to supply them in Congo.”
Zambia had banned sulfuric acid exports in September after weak local production and global disruptions related to the war in Iran tightened supplies of chemicals used in leaching operations.
In response, miners in Congo, the world’s largest producer of cobalt and the second-largest producer of copper, reduced usage and considered cutting production.
