WASHINGTON, April 13, 2023 – Today, World Bank Group President David Malpass met with Situmbeko Musokotwane, Minister of Finance and National Planning of Zambia.
President Malpass and Minister Musokotwane discussed the challenging global outlook. President Malpass commended Zambia for its sustained efforts to restore macroeconomic stability and debt sustainability, underscoring the link between successful structural reforms and enhanced growth and revenues.
President Malpass and Minister Musokotwane spoke about the importance of private sector growth for jobs and poverty reduction. President Malpass mentioned the large potential of the Zambian economy in mining and agriculture sectors and underscored a need for improvements in infrastructure connectivity, access to working capital, and digitalization. President Malpass also spoke about the importance of private sector enabling reforms to mobilize capital and foreign investment into Zambia and highlighted that the debt relief will be critical for attracting new capital. President Malpass mentioned the upcoming Country Private Sector Diagnostic (CPSD) for Zambia which will help identify critical reforms to unlock private sector growth.
President Malpass expressed his deep concern about the ongoing debt stalemate despite Zambia’s efforts. In this context, President Malpass emphasized that the upcoming meeting of the official creditors’ committee for Zambia on April 18 will be a good opportunity to discuss the draft Memorandum of Understanding and reach agreement on the debt treatment for Zambia that is aligned with the Joint WB-IMF Debt Sustainability Analysis.
President Malpass reaffirmed the World Bank Group’s commitment to continue supporting Zambia during the protracted debt restructuring discussions. He said that the World Bank Group will continue to stand with Zambia during challenging times, including with support from IDA. President Malpass also emphasized that starting July 1, 2023, Zambia will receive 100% of its IDA financing in the form grants.