According to the Zambian Minister of Finance, Alexander Chikwanda, the Zambian real gross domestic product (GDP) grew by 6% in 2014, making it the 7th and 10th fastest growing economy in sub-Saharan Africa and the world, respectively, with real growth projected to quicken to 7% between 2015 and 2017.
In a statement released by the Minister of Finance, Hon. Chikwanda expressed the government’s commitment to ensuring that the programs and activities that are approved in the 2015 parliamentary budget will be well implemented in order to move Zambia into a middle-income prosperous nation.
Hon. Chikwanda went on to explain in his statement that Zambia’s GDP growth between 2015 and 2017, GDP growth to 7% will likely come as a results of increases in agricultural production, electricity generation, and construction as well as growth in transport and communication.
Additionally, the Minister of Finance explained that the government is committed to working to resolve the issue of value-added tax (VAT) refunds with mining companies and was eager to reach an agreement with them on new mining taxes.
“For next year, we have made provisions to cover normal VAT refunds as well as dismantling prior claims where sufficient documentation is provided,” the minister said.
Hon. Chikwanda concluded by noting that investor confidence overall was strong in 2014 as evidenced by Zambia’s sovereign credit ratings at a ceiling of B+ in addition to the continued increase in foreign direct investment (FDI) flows.
