But as a person, president Edgar Lungu is doing very fine as evidenced by his growing pot belly and $3000 suits he now puts on compared to the cheap ‘bombas’ from Kamwala second class trading area he was wearing before he became president.
And Stanbic Bank Zambia says the kwacha, which this week depreciated to its all-time lowest of over K8 against the US dollar, is currently under considerable pressure.
Standard Bank is one of South Africa’s largest financial services groups and the largest African bank by asset and earnings, which trades in Zambia as Stanbic Bank.
Yvette Babb, a Fixed Income and Currency strategist at Standard Bank, said Zambia’s economy was currently facing a number of problems, which included depreciating kwacha, falling copper prices and credibility of the Ministry of Finance to remain within budgetary approved targets, especially to do with the widening fiscal deficit and increasing government appetite for borrowing, locally and outside.
Babb said in view of the many challenges facing the economy, there was need to streamline government policies and cut back on recurrent expenditures, especially to do with allowances for bureaucrats.
“In Zambia clearly, there are fiscal issues and this relates to the larger size of the fiscal deficit,” she said at a Stanbic Bank organized meeting to give insights on regional and local economic trends.
She said since 2013, Zambia had continued to face repeated under-delivery in sticking to the set target within the budget to reduce the fiscal deficit.