Zambian finances under immense pressure
Zambia is at the forefront of African countries that are suffering from the downturn in globally traded metal prices over the past few years. Government finances are under immense stress as revenue flows have contracted and international financing options have become much more limited and more costly. Severe drought conditions, chronic electricity shortages and the fast approaching August presidential and legislative elections are adding to the sense of uncertainty and instability in the country and among its trade partners and investors. The kwacha was among the worst performing currencies internationally in 2015 and remains under intense pressure, despite being at an all-time low against the US dollar. On a positive note, the IMF appears willing to provide a financial support package to Zambia once the elections are out of the way and may become more active in helping steer the economy out of the current choppy waters.