Zambia starts consultation on economic recovery plan

The Zambian government said on Tuesday that it has started making both internal and external consultations in order to come up with an economic recovery plan.

The Zambian government suffered the effects of the downfall in global commodity prices, which saw copper prices plummeting. Copper accounts for about 70 percent in the country's foreign exchange earnings.

The situation was exacerbated by a crippling power deficit which saw firms downsizing on their production, with the mining sector, the most affected.

But Minister of Finance Felix Mutati said consultations with both local and external stakeholders have commenced to ensure broad consultation in formulating economic recovery policies which will be announced alongside the 2017 budget.

The government, he said, will cooperate with all partners, including the International Monetary Fund (IMF), in constructing the country's economic recovery program, according to a statement released by his office following a meeting with visiting British Department for International Development chief economist Stefan Dercon.

The finance minister is this week expected to meet stakeholders from the banking sector, revenue collection agency and the mining industry as part of the consultation process.

He said the government will prescribe invaluable reforms aimed at assisting the country in handling the pressing socio-economic challenges facing people.

Dercon said Zambia should diversify its exports as a way of cushioning it against the side effects of over-dependence on copper revenue.

Zambia is expected to agree a deal with the IMF for a financing program of about 1.2 billion U.S. dollars before the end of this year to deal with the current economic challenges. Endit