Zambia, Africa’s leading copper producer has continued to thank the donor community and its people for joint efforts in making the economy robust and growing at about 7% with President Mr RupiaH Banda pledging to ensure more growth is sustained to better the lives of people.

Mr Banda hailed the International Monetary Fund, one of Zambia’s key development partners for its recognition of Zambia’s efforts to revitalize the economy. In welcoming the Bretton Woods Institution’s assessment of Zambia’s economic performance stated that the country was elated by the IMF’s description of the country’s economic program as robust and broad based in yet another affirmation of the country’s increasingly respectable international record.

Moeketsi Majoro ED IMF for Zambia said that IMF further endorsed Zambia’s recent development success. Zambia’s economy has remained robust and broad based. Zambia’s economic growth performance of 7.6% was higher than earlier projected and is the result of continued strong performance of the agricultural, mining and transport sectors as well as supportive macroeconomic policies.

Mr Banda noted that it was gratifying for the IMF and other cooperating partners to recognize Zambia’s efforts to better the lives of its people and pledged to work much harder to make real returns. I have worked tirelessly to create strong foundations on which to build tomorrow’s Zambia and to ensure economic success can be fostered to benefit all Zambians. The strength of the mining, agricultural and transport sectors are contributing to a diversified economic base and a steady stream of foreign investment and are bringing great opportunities for hard-working citizens in all parts of the country.

Mr Banda stated that he would continue to ensure that the economy benefitted all Zambians. I welcome Mr Majoro’s comments and continue to push forward improvements to our economy to create stability and yield jobs. My goal has always been for Zambia to achieve a better place in the world and this goal is being realized.

The IMF’s statement was based on the IMF’s review of its 3 year Extended Credit Facility arrangement with Zambia. The global financial institution regards Zambia as a key economic partner in southern Africa and has been impressed by the government’s fiscal and monetary agenda under the leadership of Mr Banda.

The country’s program performance was broadly satisfactory, with all end-December 2010 performance criteria being met with the exception of the net domestic financing ceiling. The announcement is the latest in a series of economic achievements and optimism surrounding Zambia’s development program.

The World Bank recently reclassified the country as a lower middle-income country based on rising per capita income the government is now aiming to reach the upper middle-income bracket by 2030. However, the IMF noted that there is still poverty in the country despite pronouncements of economic growth. The global lender stated that it had noted that country was unlikely to attain the Millennium Development Goals by 2015 because extreme poverty still characterized the country despite the strong growth and overall successs of the 2004-2011 fund supported programs.

Mr Majoro said that based on the on the sixth and last review of the IMF’s 3 year Extended Credit Facility arrangement with Zambia stated that urban poverty declined markedly while rural poverty declined with a modest pace. This may reflect the concentration of growth in highly capital-intensive or urban based sectors like mining, construction and services, while per capita agricultural growth, a key factor for the rural population lagged behind.

This report is IMF’s sixth and last review of the ECF which focuses on economic and program performance, fiscal, monetary, financial and structural policies.

According to the IMF, Zambia, Africa’s largest copper producer and worlds fourth largest had asked for a waiver for the breach of this particular performance criterion because of its unpredictable and temporary nature. The program performance was broadly satisfactory with all end December 2010 performance criteria being met with the exception of the net domestic financing ceiling. The development was mainly attributed to expansionary budget pressure to purchase the surplus maize harvest and unexpected continuous voter registration exercise.

(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)