Under the Radar: Should Zambia finance Eurobonds with marijuana?
Zambia is suffering a severe hangover from its decade long commodity boom, as mounting debt and energy shortages are crippling the once vibrant economy.
Zambia has seen a decrease in GDP growth from an average of 7.4% from 2004-2014 to barely 3% for 2016. This figure is only slightly above population growth. When annual inflation is added – which despite having decreased from 22.9% in January to only 8.8% in November – it reveals that the livelihoods of Zambians are actually regressing. This slowdown has affected the government’s bottom line, as Zambia’s national debt continues to pile up.
Zambia facing overlapping economic crises
With copper exports accounting for 77% of government revenue, the 10.4% decrease in these prices through Q3 2016 (compared to the first three quarters of 2015), combined with rolling blackouts has led to a raft of financial shortcomings. Domestic revenues have fallen by 15% compared to 2015,...
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