Business

Zambia’s IMF ranking good

ESTHER MSETEKA, Lusaka
ZAMBIA is the third biggest shareholder in sub-Saharan Africa under the International Monetary Fund (IMF) ranking, giving the country an opportunity to source for affordable financing to promote broad-based fiscal growth, a socio-economic think tank notes.
With such a ranking, Zambia should consider benefitting from the IMF funding as it embarks on the economic recovery programme to restore its macroeconomic stability, the Zambia Institute for Policy Analysis and Research (ZIPAR) notes.
Since 1965, Zambia has been among 188 countries that have been subscribing to the IMF, whose core task is to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world, among others.
ZIPAR executive director Pamela Nakamba-Kabaso said when there is instability in one of its member states, the IMF’s interest is to ensure that a solution is found to help address the problem.
“Zambia is a member of the IMF and it subscribes to it and within the memberships there is some rating, which they give to various countries. In sub-Saharan Africa, Zambia comes third after Nigeria and South Africa. However, overall, Zambia ranks eighth in Africa, if we include Arab-speaking countries such as Egypt, Libya, Algeria and Djibouti which rank higher on the quota system.
“Therefore, with such ranking we should benefit from them and seize the opportunity [for financial support], especially that their package is coming at a zero interest rate,” Dr Nakamba-Kabaso said.
She said that there is need for Zambians to perceive the IMF as a partner that can help get the country back on its economic growth.
“We should look at the IMF as our partner and reap the benefits that they offer. As an international financial institution, their interest is to ensure that the international environment for finance is stable,” Dr Nakamba-Kabaso said.
She said a better performing economy enables a country to honour its economic obligations such as the payment of value added tax refunds and further improves investor confidence in the country.

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