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(LUSAKATIMES) Standards & Poors team in Zambia to review economic performance, structural issues

Standards & Poors team in Zambia to review economic performance, structural issues
TIME PUBLISHED - Thursday, January 19, 2012, 11:26 am

A TEAM from Standard and Poor’s (S&P), a renowned international rating agency is in Zambia to review the country’s economic performance and structural issues. This is the first time that S&P team is in the country to assess Zambia’s performance following the rating of B+ last year.

Secretary to the Treasury Fredson Yamba confirmed in an interview that the team arrived in Lusaka over the weekend. The delegation is expected to hold meetings with various Government ministries and the private sector among them the Economics Association of Zambia and the Bankers Association of Zambia.

Mr Yamba said the team is expected to wind up its assessments on Zambia by Friday and present a report to Government. In a separate interview, Standard Chartered Zambia, head global markets dealing, Stanley Tamele said economic fundamentals in Zambia are strong and positive, adding that the re-evaluation of the country’s performance should not worry anyone.

Mr Tamele said assessments of a country’s performance by rating agencies are routine. He said Zambia can be rated with a B+, upgraded or downgraded depending on the performance. He said the rating and proposal by Government to issue a US$500 million euro bond targeted for infrastructure development is a good sign for economic growth.

He said by and large, the economic outlook for the country is very positive considering that last year Zambia went through an election in September that had an element of political risk but not so big considering that there is a new Government and things are stable.

“There is confidence back in the economy, we see the Kwacha in the short-term reducing to K5,050 from where it is (K5,200) and steadily making progress to about K4,900 levels,” he said.

Mr Tamele said the assessment of Zambia by S&P should not cause anxiety considering that some European countries that have had their rating were downgraded due debt crisis and defaulting on debt.

“The outlook for our economy is very positive, sub-Saharan growth is expected to be very high compared to Western where it’s expected to be very minimal…the fundamentals look good and positive and I don’t think there is much to worry especially in relation to what is happening in the Euro zone,” he said.

Some countries in the Euro zone have had their rating downgraded due to the debt crisis.

[Zambia Daily Mail]

Labels: EAZ, NEOLIBERALISM

posted by MrK @ 5:13 PM