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1. Leveraging the BRI for Africa’s Industrialisation and Intra-Trade (Opportunities for the AfCFTA)

Author:
Mwanda Phiri and Nakubyana Mungomba
Publication Date:
12-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Two initiatives have recently gained prominence, one on the global stage and the other in Africa: China’s Belt and Road Initiative (BRI) and the African Continental Free Trade Area (AfCFTA). The former initiative’s primary aim is to build economic infrastructure in the transport, energy and telecommunications sectors in the countries through which the BRI will pass, which has come to include several African countries. Concurrently, the objective of the AfCFTA is to deepen economic integration amongst African states by creating a unified market for goods and services and in the process, propel Africa’s industrialisation and structural transformation. Although seemingly independent, these initiatives converge and present two economic diplomacy instruments that can be leveraged to address Africa’s industrialisation challenge and the bottlenecks to intra-African trade for inclusive and sustainable development. On the back of secondary data sources, this paper explores how the BRI can be leveraged to advance the objectives of the AfCFTA by addressing the financing, infrastructure and productive capacity challenges constraining Africa’s industrialisation and intra-trade
Topic:
Regional Cooperation, Belt and Road Initiative (BRI), Free Trade, and Industrialization
Political Geography:
Africa and Zambia

2. A Review of Pillar I & II of Zambia’s Economic Stabilisation and Growth Programme 2017-2019

Author:
Florence Banda-Muleya, Shebo Nalishebo, Mbewe Kalikeka, Nakubyana Mungomba, Ignatius Masilokwa, and Caesar Cheelo
Publication Date:
06-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
The economic crisis of 2015 destabilised Zambia’s economic performance. The depreciation of the Kwacha and its pass-through effects led to inflation of as high as 22% and growth, at 2.9%, was far below the 5% target. The overall Budget deviation was 15% of Parliamentary appropriations in 2015, disrupting planned activities and attainment of set macroeconomic objectives. There were huge variations between what the consequent national Budgets committed to do and what they actually did. To fix this and nudge the country back towards high sustained economic growth, the Economic Stabilisation and Growth Programme (ESGP) was crafted in 2017. The five-pillar plan aimed to ensure prudent fiscal management by providing a system of accountability and a standard against which results could be measured, among other things. The aim of this paper is to review the ESGP, particularly, its performance in 2018. The paper sets out to understand how well Zambia faired in implementing the ESGP as well as to highlight the broader fiscal trends recently. It ultimately seeks to make recommendations about how Zambia can revive its path to economic stability and growth. The paper focuses tightly on the first two pillars of the ESGP, i.e. (i) restoring budget credibility; and (ii) enhancing domestic resource mobilisation and refocusing public expenditure. The remaining three pillars are slated to be reviewed in the second half of 2019.
Topic:
Budget, Finance, Economic growth, and Economic Stability
Political Geography:
Africa and Zambia

3. In Further Pursuit of an IMF-Programme: Possible Pathways for Zambia and Lessons for Africa

Author:
Caesar Cheelo and Nakubyana Mungomba
Publication Date:
09-2019
Content Type:
Working Paper
Institution:
Zambia Institute for Policy Analysis and Research (ZIPAR)
Abstract:
Since 2015, Zambia’s real GDP growth has declined markedly, its local currency has depreciated notably with episodes of serious volatility, and the risks of fiscal and debt distress have mounted. As the country searches for solutions, one viable international economic diplomacy instrument might be the IMF. Since its creation in 1945, the IMF has fostered global monetary cooperation, secured financial stability, international trade, high employment, sustainable economic growth and poverty reduction, mainly through: lending, surveillance and capacity building. Zambia has been pursuing an IMF-supported economic programme since about 2016, but with dismal success. In contrast, other economies like Ghana and Zimbabwe appear to be making headway. Key questions emerge from the foregoing: what does the evidence say about the relevance and significance of an IMF-supported programme for Zambia? Why has the country’s recent quest for an IMF deal failed? Does Zambia have feasible pathways to an IMF deal? This paper tackles these issues using simply descriptive statistical analysis, stylized facts and a political economy lens. We highlight a number of specific pathways that Zambia could follow in further pursuit of an IMF-support programme.
Topic:
Political Economy, GDP, Economy, Macroeconomics, Currency, and IMF
Political Geography:
Africa and Zambia