Latest news with #SitumbekoMusokotwane
TimesLIVE
6 days ago
- Business
- TimesLIVE
Zambia seeks approval for $1.4bn additional budget spending
Zambia's finance minister Situmbeko Musokotwane asked parliament on Thursday to approve an additional 33.6-billion kwacha (R25.45bn) of spending this year, saying the original amount budgeted for was insufficient. Musokotwane said about 33% of the new spending would be allocated to clearing fuel arrears, 24% would go on increased debt payments and 18% would be used to support the agricultural sector. Other allocations will be made for social services and education. The spending would mainly be financed by more domestic borrowing, cost-cutting on other items and new taxes, he said. Southern African copper producer Zambia defaulted on its sovereign debt in 2020. It has since been in restructuring negotiations with its overseas creditors as it tries to get its public finances back on a stable footing. Parliament's budget committee will give its view on the government's supplementary spending estimates by July 1.
Bloomberg
6 days ago
- Business
- Bloomberg
Zambia to Borrow Extra $624 Million From Domestic Market in 2025
Zambia will borrow an additional 14.8 billion kwacha ($624 million) from the domestic market to cover a bigger-than-expected shortfall in this year's budget, Finance Minister Situmbeko Musokotwane said. The copper-rich southern African nation will also raise 4.9 billion kwacha in additional taxes, most of which will come from unspecified new revenue measures, he told lawmakers on Thursday.
Business Insider
10-06-2025
- Business
- Business Insider
Zambia projects strongest economic growth in four years
Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. Zambia's economy is expected to grow by at least 6% in 2025, the strongest expansion since 2021, driven by increased copper production and improved rainfall. Zambia has emerged from a lengthy debt restructuring process, aiding growth prospects and bolstering returns for creditors. The Zambian kwacha has become Africa's second-best performing currency against the US dollar in 2025, aided by easing inflation and lower food prices. Zambia's economy is on track to grow by at least 6% this year, marking its strongest expansion since 2021, according to Finance Minister Situmbeko Musokotwane. He disclosed this on the sidelines of Bloomberg's annual Africa Business Media Innovators conference. According to Musokotwane, the rebound is driven by improved rainfall and increased copper production. Musokotwane had mentioned earlier this year that the country is banking on its mining industry for an economic recovery. Zambia, Africa's second-largest copper producer, experienced a significant increase in metal production last year, which accounts for more than 70% of the country's export earnings. Next year Zambia hopes to increase copper production to around 1 million tons, and eventually, to 3 million tons. "If all goes according to plan, 2025 should be the start of this revival and it will be getting stronger and stronger each year going forward," he said in January. This economic upswing comes as Zambia emerges from a protracted debt restructuring process. The stronger growth outlook boosts prospects for higher returns to creditors, including bondholders. Musokotwane is 'confident that we will get to that 6%,' he said. 'We just need to maintain this for 10, 15 years, positive growth every year. I think people will begin to see that it's not a certainty that you are born in poverty and you will end in poverty. Things can change.' Currency strength and easing inflation offer relief Notably, for the first time in a long time, Zambia's inflation rate is easing, offering the country some much-needed economic relief. At the same time, the kwacha has become Africa's second-best performing currency against the dollar in 2025, gaining 12% after a sharp rally last week. The easing of inflation is largely driven by falling prices of essential food items such as bread and cereals, following improved rainfall that helped mitigate the impact of the country's drought.
Bloomberg
10-06-2025
- Business
- Bloomberg
Zambia Sees Economic Growth Surging to Highest Since 2021
Zambia's economy will expand at least 6% this year as Africa's second-largest copper producer reaps the benefit of improved rainfall and higher metal production, the finance minister said. Growth will accelerate to what would be the highest since 2021, Situmbeko Musokotwane said in an interview on Monday. The economy grew by about 4% last year.
Business Insider
10-06-2025
- Automotive
- Business Insider
Zambia courts carmakers for EV parts manufacturing near copper sites
Zambia has engaged in discussions with automakers to attract electric vehicle (EV) component manufacturers to set up plants close to its copper mining sites. Zambia aims to attract EV component manufacturers near its copper mines. Copper is crucial for EV engines, boosting Zambia's role in the supply chain. Finance Minister Musokotwane encourages investments during international discussions. Zambia has engaged in discussions with automakers to attract electric vehicle (EV) component manufacturers to set up plants close to its copper mining sites. The southern African country is Africa's second-largest copper producer, and copper is a vital material used in electric vehicle (EV) engines, according to Bloomberg. 'We have been talking, even last week when I was in Germany, telling these companies to please consider the manufacture of some of your electric-vehicle components in Zambia, ' Finance Minister Situmbeko Musokotwane said. 'Those components can then be shipped to your factories in South Africa which now exports to the rest of the world. That is a powerful way of value addition.' Rising investor confidence The country has already made progress in attracting EV companies. Last year, Build Your Dreams (BYD), World's largest electric manufacturer, expanded into Zambia through a partnership with Pilatus Electric Mobility Zambia Limited (PEM). The move signals growing investor interest in Zambia's role in the global EV supply chain. Zambia's government intends to maintain prudent fiscal policies even after its current International Monetary Fund (IMF) program ends in October, according to Finance Minister Situmbeko Musokotwane. He noted that the cabinet has not decided whether to pursue a new loan. Speaking at Bloomberg's annual Africa Business Media Innovators conference, Musokotwane also criticized the sudden withdrawal of some U.S. aid programs to Zambia and the broader African continent. However, he acknowledged that such support was always expected to decline gradually.
