IMF to Assess Zambia's Drought Impact

The International Monetary Fund (IMF) announced on Thursday its plans to evaluate the economic repercussions of a severe drought in Zambia, arranging a visit for mid-April.

Following President Hichilema's declaration of the drought as a national disaster on February 29th, Zambia is poised to implement electricity rationing next week. This action stems from the drought's dual impact on food production and diminished hydropower generation, which typically accounts for 85% of the nation's energy supply.

According to IMF spokesperson Julie Kozack during a scheduled press conference, an initial assessment indicates significant crop losses and the necessity for energy imports, which will adversely impact the current account balance. However, Kozack noted that while the drought's effects are substantial in the short term, the overall economic impact over the medium term is anticipated to be less significant.