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Zambia economy

Zambia: Decisions with unintended consequences?

Asumani Guloba's picture

Since the start of 2012, expectations in Zambia have been running high: stable economy; a newly elected government; recently crowned African football champions.  Everything seems possible.  For the new government, fulfilling election promises will require well thought through development decisions. Are the decisions taken so far having the intended consequences?

The Zambian economy has been remarkably resilient, with growth averaging 6.6% in the past five years, supported by strong macroeconomic policies, high copper production and favorable prices. End-year inflation has been in single digits for four of the last five years, the debt and fiscal positions well within sustainable levels. In addition, since independence, the country has witnessed five peaceful elections leading to four changes in government. These factors auger well for the future economic prospects of the country. Or do they?