Government tells IMF will cut $1 billion in subsidies

folarin okunola

October 10, 2016 8:36 PM

The Zambian government subsidies include about $600 million annually for electricity and fuel

Edward Lungu (C) was narrowly reelected as Zambia's president with 50.35 percent of the vote

Zambia has told the International Monetary Fund (IMF) it will gradually cut subsidies amounting to about $1 billion as part of an economic recovery plan, Finance Minister Felix Mutati said.

Africa’s second-biggest copper producer will also boost funds for social welfare, Mutati said during talks with IMF officials at the lender’s annual meetings, a finance ministry statement released late on Sunday said.

The statement did not specify which subsidies would be trimmed. Zambian government subsidies include about $600 million annually for electricity and fuel.

folarin okunola