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Vol 37 No 25

Published 13th December 1996


Zambia

In suspense

Foreign and local businesses are stepping up pressure on Western donors to resume aid to Frederick Chiluba' s government after the disputed 18 November elections. They say Chiluba' s economic reforms may be blown further off course if the aid squeeze continues: Lusaka already overshot its International Monetary Fund-monitored budget targets in the election run-up. The foreign exchange shortage may soon become critical and funding be cut for all but essential government services in the capital. Several ministers have adopted aggressively anti-Western postures, accusing key donors such as Britain and Japan of financing anti-government election monitors; Chiluba has banned all ministers, except Foreign Minister Lawrence Shimba, from pontificating on relations with donors.

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