Zambia has received an $11.1m loan from the Abidjan-based African Development Fund, which approved the money to help the country stabilize its economy and reduce annual GDP to 6,1%.
Zambia’s high capital investment, high debt-servicing costs, and large wage bill have been negatively affecting its GDP, which grew to 7.1% in 2018. To combat this issue, authorities constantly attempt to implement various economic reforms, however, the matter is still on the list.
In this regard, the large African Development Bank Group’s cheque is aimed to improve the country’s management of public resources as a part of a four-year project.
According to the contract terms, one of the main priorities of the funding is improving the capacity of staff in institutions responsible for public finance, economic management, development planning, and statistics — the stakeholders believe it will have a massive impact on the issue as qualified specialists raised in Zambia will significantly contribute to the rebuilding of fiscal space.