Zambia 12.05.24

• Zambia experienced a debilitating dry spell lasting more than five weeks in March and April. This time of year is crucial for farmers as it is the beginning of the harvest season. However, this year, the drought has meant that half of the maize planted has been destroyed.  The country is calling for climate-health solutions.https://www.ippmedia.com/the-guardian/features/read/unravelling-zambias-drought-crisis-and-the-urgent-call-for-climate-health-solutions-2024-05-10-215352

• An IMF team visited Zambia from 24th April- 7th May for its 3rd review. After this review, the IMF will release Zambia’s fourth tranche under the programme. https://www.cnbcafrica.com/2024/imf-to-continue-discussions-with-zambian-authorities-after-visit/

• Following the droughts and hard currency shortages, the Kwacha has lost almost 5% of its value this year and has hit a record low against the US dollar. https://www.reuters.com/markets/currencies/zambias-kwacha-hits-record-low-against-us-dollar-2024-05-08/

• Equally, the IMF has more than halved Zambia’s 2024 economic growth forecast. The IMF expects GDP to expand by 2.3%. https://www.bloomberg.com/news/articles/2024-05-09/imf-more-than-halves-drought-hit-zambia-s-2024-growth-forecast