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Subject
Outlook for Zambia's economy.
Significance
Finance Minister Alexander Chikwanda last month presented revisions to the 2015 budget. They reflected the cooling growth environment, lower-than-expected tax revenues and rising borrowing costs. Droughts have exacerbated these vulnerabilities by pressuring Zambia's hydroelectric power supplies. Economic prospects are weakened ahead of elections scheduled for September 2016.
Impacts
Riots that took place in the main tourist hub Livingstone over the fuel price hike could hit visitor numbers if repeated.
Revenue woes will harden the government's stance on tax avoidance, raising tensions with miners.
The government may use the Sustainable Development Goals summit to press for greater donor aid, citing its revenue crunch.
Keywords:
Zambia,
AF,
economy,
agriculture,
electricity,
fiscal,
metals,
mining,
utilities,
politics
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2015
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