the information and communication, electricity, public administration and
education sectors.
There was also an increase in lending to the private sector mainly supported
by increased disbursements of the Central Bank’s Targeted Medium Term
Refinancing Facility which benefited from a revision of the terms and
conditions to increase flexibility. However, fears of new variants of the
COVID-19 pandemic emerging continued to pose a risk to the growth
outlook for the quarter and beyond.
Likewise, the August Stanbic Purchasing Manager’s Index (PMI)17 projected
a fairly positive picture, citing a significantly slower pace of increase in input
costs and selling prices (the lowest since the first quarter). Also noted was a
marginal rise in new business growth, amid signs of improved customer
demand. This was all against the backdrop of a perceived improvement in
customer demand as well as a pause in activity during the electoral period.
Generally, The Stanbic PMI reported broad stability in business midway
through the quarter, a picture that positively affected media houses both
directly and indirectly.
The impact of the COVID-19 pandemic remained rife during the quarter
under review, following the continuation of partial enforcement of preventive
measures such as social distancing, virtual and rotational work systems,
among others.
However, during the quarter, some positive returns were noted from some of
the government measures put in place to alleviate the economic effects of
COVID-19, such as the Targeted Medium Term Refinancing Facility
(TMTRF), easing of the monetary policy and provision of liquidity to banks
on flexible terms18.

17

The Stanbic Bank Zambia PMI is compiled from responses to questionnaires sent to purchasing managers in
a panel of around 400 private sector companies. The panel is stratified by detailed sector and company
workforce size, based on contributions to GDP. The sectors covered by the survey include agriculture, mining,
manufacturing,
construction,
wholesale,
retail
and
services.
See
https://www.stanbicbank.co.zm/static_file/Zambia/ZM_PMI_APR_2021.pdf
18

As reported by Bank of Zambia Governor, Christopher Mvunga, at the launch of the PWC banking and nonbanking industry survey report.

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