EAZ welcomes $1.5bn IMF Extended Credit staff-level deal

The Economics Association of Zambia (EAZ) has welcomed the US$1.5 billion International Monetary Fund (IMF) Extended Credit Facility staff-level agreement, saying it will support macroeconomic stability and the implementation of the Grow Zambia Agenda.

EAZ national secretary John Musantu said the facility, which fell under concessional financing, would help Zambia manage external economic shocks while creating a stable environment for investment and economic growth.

Dr Musantu said that a stable macroeconomic environment characterised by controlled inflation, affordable interest rates, a stable exchange rate and adequate foreign reserves was necessary for the successful implementation of the Grow Zambia Agenda.

He said in a statement that the financing was critical to the country’s ambition to expand key economic sectors and double the size of the economy.

“Domestic borrowing should be optimised without crowding out the private sector, particularly Small and Medium Enterprises (SMEs), which require affordable financing to grow their businesses,” he said.

Dr Musantu said that financial institutions should be encouraged to channel more funds towards productive business activities rather than concentrating heavily on Government securities.

He said that a thriving and profitable private sector was essential to sustaining the Grow Zambia Agenda and creating opportunities for businesses to contribute to economic growth.