Business and Economic News
Zambia Re-Classified as a Middle Income Country
During its annual revision of the classification of world economies based on estimates of gross national income (GNI) per capita for the previous year, the World Bank re-classified Zambia as a lower-middle-income country. According to the new classification, lower-middle-income economies had average incomes ranging from $1,006 to $3,975. Dr. Situmbeko Musokotwane, Finance and National Planning Minister, attributed Zambia´s rating as a middle income country to good policies which had facilitated increased economic investments especially in the mining sector. Government is now aiming to reach the higher bracket where per capita income ranges from $3,000 to $12,000.
Bank of Zambia Governor Dr, Caleb Fundanga, also attributed that Zambia´s progress to heavy investment in the mining sector supported by higher copper prices. He added that successive bumper harvests were also a factor.
The Economic Association of Zambia (EAZ) indicated that Zambia´s new economic status will lead to more investments which will stimulate growth in other sectors of the economy. EAZ observed that multilateral institutions (such as aid agencies) would have confidence in Zambia´s economic performance and that would lead to more favourable cooperation which would benefit the country.
The President for the Zambia Chamber of Commerce and Industry (ZACCI), Jeff Sakulanda, urged Zambians to be proud of the lower-middle-income status because it showed government´s prudent economic management. Davison Chilipamushi, former Commerce and Trade Permanent Secretary, noted that Zambia´s per capita income has increased due to the stable macroeconomic policies.