This archive report was first published on 24 June 2020.
On June 23, 2020, Zambia's cabinet approved an 8 billion kwacha ($439 million) economic stimulus package to alleviate the pandemic's impact, financed through a Covid-19 bond.
The package aims to improve liquidity levels in the economy, which has been severely affected by the coronavirus outbreak.
As Africa's second-largest copper producer, Zambia has been struggling with growing public debt even before the pandemic forced lockdowns across the globe.
The government has reported 1,416 confirmed coronavirus cases and 11 deaths so far.
According to the presidency, the proceeds from the bond will go towards needy areas, including payment of retirees, contractors, and suppliers, which have been hit by reduced liquidity due to Covid-19.
As a result of economic adjustments due to Covid-19, Zambia's budgeted revenue is estimated to fall short of target by close to 20 per cent, the finance ministry said in April.
The central bank projected in May that gross domestic product (GDP) would shrink 2.6 per cent in 2020, its first economic contraction in more than 20 years.
