Zambia: Disputed election exacerbates uncertain outlook

Posted by on Sep 21st, 2016 and filed under Allgemein, Breaking News, Markets. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.

cr-zambiaEvent

Incumbent President Edgar Lungu of the governing Patriotic Front (PF) won the closely fought 11 August presidential elections securing 50.4% of the vote and narrowly avoided a second-round run-off with his main rival Hichilema of the opposition United Party of National Development (UPND) who won 47.6%.

Even though voting day proceeded rather peacefully in general, it has been one of Zambia’s most controversial and violent campaign periods, marked by street confrontations between PF and UPND supporters, harassment of activists and arrests of opposition leaders.

The UPND challenged the results at the Constitutional Court for alleged fraud and irregularities.

Impact on country risk

Civil discontent has flared since the drop in copper prices led to the loss of thousands of jobs, painful energy shortages and a tumbling local currency (Kwacha) causing double-digit inflation.

As a result of the economic malaise, an IMF bailout package – previously postponed until after the elections – will be negotiated in the coming months for preventing a balance of payments crisis and to improve public finances. In time, this should help reboot confidence and encourage investors, yet on the other hand, unpopular fiscal reforms will be conditional and might further unhinge the already fragile political climate.

Moreover, patterns of rising authoritarianism under President Lungu have become more apparent, evidenced by opposition arrests made after post-election protests and the closure of independent and critical media.

Accordingly, the risk for riots and protests will remain elevated during the opposition’s legal bid and especially in case the Constitutional Court would decide in favour of the ruling PF. Country risk analyst

 

Louise Van Cauwenbergh  Credendo Group

Credendo Group  has used its best endeavours to ensure that all the information, data, documentation and other material (copy and images) in thisreport are accurate and complete. Credendo Group accepts no liability for errors or omissions. The views expressed herein are the author’s personal views andare not intended to reflect the views of Credendo Group. Credendo Group will not be liable for claims or losses of any nature arising directly or indirectly fromuse of the information, data, documentation or other material from this report.


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