Zambia’s growth is projected to slow to 2% this year, reflecting a decline in mining sector activity, owing to policy uncertainty and the ongoing drought’s impact on the production capacity of the country’s hydropower plants, according to a press release published by the International Monetary Fund last month. International specialist banking and asset management group Investec portfolio manager Thys Louw agrees with this forecast, noting that general investor sentiment is that Zambia is at high risk of debt distress, owing to its government excessively borrowing funds, mainly from China, for rapid infrastructure development without sufficient planning.
