Lusaka, Zambia — Mrs. Yande Siame Mwenye, President of the Zambia Institute of Chartered Accountants (ZiCA), addressed the nation today during the 2024 fourth-quarter media briefing, focusing on pressing economic and fiscal matters affecting Zambia. The briefing underscored ZiCA’s commitment to promoting economic stability and sustainable growth while advocating for robust fiscal policies and transparency.
Debt Restructuring Milestone with France
In a historic move, Zambia has signed a debt restructuring agreement with France, covering $13 billion of its external debt under the G20-Paris Club Common Framework. The deal extends repayment terms by an average of 12 years beyond 2040 and fixes interest rates at 1% for 14 years, not exceeding 2.5% thereafter. Mrs. Mwenye lauded the government’s efforts while emphasizing the need for prudent fiscal policies to prevent future debt crises.
IMF and AfDB Funding
The International Monetary Fund (IMF) approved a fifth tranche of $184 million under the Extended Credit Facility, aimed at fostering economic stability and debt sustainability. Parliament also approved a $108 million loan from the African Development Bank, with extended repayment terms designed to ease Zambia’s fiscal pressures.
Tax Reforms and Sustainability Standards
ZiCA welcomed several 2024 tax amendments, including a 10% excise duty on betting companies and revised surtaxes on imported goods to encourage local production. Additionally, the Institute highlighted the adoption of the IFRS S1 and S2 sustainability standards for Publicly Accountable Entities, effective January 2025. These measures are expected to enhance transparency and attract global investors while addressing environmental challenges.
Energy Crisis and Economic Resilience
The ongoing energy crisis, exacerbated by drought-induced power shortages, remains a critical challenge. Mrs. Mwenye endorsed the recent electricity tariff adjustments, which aim to fund increased energy imports, improve supply, and mitigate economic disruptions across sectors.
Private Sector Opportunities
ZiCA also spotlighted findings from the International Finance Corporation’s Zambia Private Sector Diagnostic, which identified potential investments in copper mining, solar energy, tourism, and agribusiness. Policy reforms in these sectors could generate up to $21 billion in investments and 300,000 jobs by 2030.
Looking Ahead
As 2024 concludes, Mrs. Mwenye urged stakeholders to prioritize economic diversification, rigorous fiscal management, and professional integrity. “Zambia must embrace a holistic and coordinated approach to address its economic challenges and foster sustainable development,” she stated.
