‘ZAMBIA’S ECONOMIC UPSCALE SUSTAINABLE’

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By BUUMBA CHIMBULU

THE positive performance of the Eurobonds is an indication that the international market has recognised that Zambia’s debt is sustainable.

This is according to Standard Chartered Bank Zambia head of wealth management, Segun Omoniwa.

Mr Omoniwa explained that the improved performance of the Eurobonds was also a strong indication that Zambia’s economy was growing.

Government Bonds on Thursday last week recorded more gains following demand from offshore investors.

He was speaking in an interview in Lusaka.

“This is fantastic for the country. I think it is just taking some back press from last year which has been improved with better flow of communication.

“As we have seen in the last few weeks coming out of the country continues to be positive, I expect to see that the Eurobonds to perform well in line with this,” Mr Omoniwa said.

Mr Omoniwa however expressed concern that the bonds were still trading slightly higher than those from other countries.

“if you look at countries that are in the same league as Zambia from the Gross Domestic Point of view, the Zambia Eurobonds are still trading at higher yields than these countries and this should not really be the case,” he said.

Meanwhile, Mr Omoniwa said the upcoming visit by the International Monetary Fund (IMF) would give credibility in Governments work towards fiscal policy.

The IMF, he said, would be able to tell if Government was on the right path.

“If I think about all the news that came out of Zambia throughout last year particularly from the government, there is a lot of work being done to ensure that the fiscal state of the nation is good.

“I will be watching very closely to see the kind of statements that come out of the IMF once they have done their visit. We hope and expect that they will be able to confirm that the government is making the right steps and that should be credit positive for the country,” Mr Omoniwa said.

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