Zambia is expected to lose about $200 million in government revenue after suspending certain fuel taxes in an effort to reduce the impact of the Iran war on households and businesses, Finance Minister Situmbeko Musokotwane said on Tuesday, according to Reuters.
The government recently approved a temporary policy that includes zero-rating Value Added Tax and suspending excise duty on petrol and diesel imports for three months starting April 1. The measures are intended to cushion citizens and businesses from rising global energy prices linked to the ongoing conflict.
Speaking at the International Monetary Fund–World Bank Spring Meetings in Washington, Musokotwane said the most immediate risk confronting many African economies over the next year is a potential energy crisis driven by the Middle East conflict.
Don’t Miss This:
Zambia Seeks Global Investment To Boost Copper Output To 3 Million Tons By 2031
He explained that the conflict could worsen inflation, increase production costs, and further strain already limited fiscal capacity across several African countries, according to a statement from Zambia’s Ministry of Finance.
While acknowledging that support from international institutions such as the IMF would be helpful, Musokotwane stressed that African governments must also implement domestic reforms to strengthen resilience and improve how public finances are managed.
He added that Zambia is among several African countries significantly affected by rising global energy costs.
Don’t Miss This:
Zambia Mine Regulator Lifts Suspension On Mopani’s Mufulira Mine After New Safety Measures Implemented
Image Credit:Vivo energy
