AIPAC Calls For Urgent Action On Zambia’s Deteriorating Economy As Reported By The IMF

By Staff Reporter

The Acton Institute for Policy Analysis Centre (AIPAC) is concerned with the International Monetary Fund’s (IMF) latest statement on Zambia’s deteriorating economy saying the development underscores the pressing need for collective action to address the country’s economic distresses.

AIPAC Executive Director Solomon Ngoma says while the centre commends the government’s efforts to mitigate the economic hardship by increasing salaries for all civil servants by K500, the impact of high taxes on civil servants, which diminishes the benefits of this increment cannot be overlooked.  

Mr. Ngoma notes that Zambia’s economy faces significant challenges, including sluggish real GDP growth projected at 2.3% in 2024, the persistent inflation driven by external supply factors and depreciation of the exchange rate.

He says to address these challenges, the Centre is therefore recommending that the government focuses on fiscal prudence, implementing sustainable fiscal consolidated measures, and reviewing tax policies to alleviate burdens on civil servants.