Zambia: Planned removal of energy subsidies raises concerns

Zambia is under pressure to end fuel subsidies as a condition for an International Monetary Fund (IMF) aid package to help tackle a worsening financial crisis, though the proposals could face popular opposition in the aftermath of August’s highly divisive election. The country is expected to finalise a new IMF deal in December worth between $1.2bn and $1.5bn. Macroeconomic parameters are at some of their worst levels since donors forgave Zambia several billions of dollars of debt in 2005 under the Heavily Indebted Poor Countries initiative.