In lieu with its commitment to reduce the adverse economic impact generated as a result of the coronavirus pandemic, Zambia’s Cabinet has approved the 8-billion-kwacha amounting to $438 million economic stimulus package.
According to the Presidency, the stimulus package has been financed through a COVID-19 bond. The Presidency said, “Cabinet resolved that it is necessary to provide an economic stimulus through the issuance of the COVID-19 bond in order to improve liquidity levels in the economy.”
The Presidency has added that the proceeds from the bond will go towards needy areas, including payment of retirees, contractors and suppliers, which have been hit by reduced liquidity due to COVID-19.
Zambia is Africa’s second largest copper producer and the COVID-19 lockdown has resulted in constraining international demand for raw materials.
The impact of the COVID-19 pandemic has added to the economic woes of the country that has been wrestling with growing public debt even before the lockdown measures out at place to stem the outbreak.