Investors Concerned By Government Comfort Over Strong Copper Prices – Kanyama

Economist Chibamba Kanyama has said that investors are concerned about the possibility of the Patriotic Front reaching a comfort stage with the state of the economy as a result of current strong copper prices.

In a recent statement, Mr Kanyama noted that in spite of the kwacha appreciating as a result of strong copper prices, the government must not become complacent with the economic situation as the country remains in high levels of external debt and in desperate need of an IMF agreement.

“The strong copper prices and a International Monetary Fund (IMF) remain Zambia’s feasible panacea to dismantling the external debt arrears that stood at about $841 million as at December 2020,” he said.

Mr Kanyama predicted that debt has now reached approximately $1 billion following default on two coupon payments.

“There is a big question coming from external investors who fear the strong cooper prices will lead to a comfort state where authorities will no longer want a programme with the IMF,” the economist outlined.

With the country so heavily reliant on foreign investment, bringing in $753 million in 2019, it is important that the government formed after the August 12 general elections are ready to tackle the issue head on, to start resolving the multitude of economic woes which have occurred over the last 10 years.