Dodia hails Zambia’s improved economic upgrade

Mon, 29 Jan 2018 15:04:50 +0000

By BUUMBA CHIMBULU

 ZAMBIA’S upgrade from negative to stable by Moody’s rating is a clear indication that Zambia’s economy is heading in the right direction, the Private Sector Development Association (PSDA) has said.

PSDA chairperson, Yusuf Dodia, observed that the upgrading of the rating would not only increase investor confidence but also improve economic perception from the international community.

“It is always good when these international ratings give us positive ratings because it inspires confidence in international markets and partners that are trying to work with us and support us. It is clear that last year, we were struggling not only with our domestic and external debt but also with possibility to finance our budget and so our fiscal performance was not very good.

“Now we see that in the 2018 national budget, Government has decided to fund it predominantly from domestic resources and from an outside investor this is seen as a very positive development because the country is beginning to show that it wants to become more dependent on domestic resources and that it can raise funds needed. This is always very good,” Mr. Dodia said.

He however said in an interview that Government should remain disciplined in 2018, focused and committed to delivering on the goals that it had set in the 2018 budget

“If that happens we are likely to see our country move in a much more positive direction,” he said.

Last week, Moody’s, an international credit ratings agency upgraded Zambia’s rating from negative to stable citing Government’s reduction in liquidity pressures and a slowdown in debt accumulation.

Moody’s rating committee was called to discuss the rating of Zambia and revealed that the fiscal or financial strength, including its debt profile, has materially decreased and that economic fundamentals, including its economic strength have materially increased.