Zambia: Edgar Lungu inaugurated President

Lungu facing challenge to repair economy in his second and final term.

Zambian President Edgar Lungu, has been inaugurated earlier today after his narrow re-election last month.

Lungu faces 2 immediate challenges: boosting an economy that’s expanding at the slowest pace in 17 years and reining in a ballooning budget shortfall.

“We will remain focused on facilitating a conducive business and investment environment,” Lungu, 59, said in his inauguration speech in front of an audience that packed the 60,000-seat National Heroes stadium in Lusaka, the country’s capital.
You will see me doing more in the fight against corruption going forward.

“There is no time and latitude to settle scores,” Lungu said. “We have got work to do. Let us seize the opportunity to rise above the different points of view that divided us during campaigns.”

His job will not be easy. He must quickly negotiate an aid package from the International Monetary Fund (IMF) that could top US$1.2 billion and will probably require cuts in energy and farm subsidies that helped push the budget deficit to nearly 10 percent of gross domestic product (GDP) last year.

In reducing subsidies, Lungu’s administration will also need to take into account an inflation rate that is hovering close to 20 percent.
“My administration will not leave anyone behind,” he added. “Every region in the country and all Zambians are entitled to receive the benefits of development.”

Zambia, which depends on copper for more than 70 percent of its export earnings, is among a number of African countries that are struggling after commodity prices plunged, leading to weakened currencies and gaping budget shortfalls. Economic expansion slowed to 3.2 percent last year from 5 percent in 2014.

Lungu was re-elected by a margin of 50.4 percent to 47.6 percent for Hakainde Hichilema in an August 11 vote. He first became president in January last year after winning the ballot to replace Michael Sata, who died in office.

Source: Bloomberg