OREANDA-NEWS. RnR Market Research Offers Report by Research on Zambia Pharmaceuticals and Healthcare Report Q3 2016

BMI View: The Zambian government will continue to boost social expenditure as President Lungu attempts to gain public favour in light of the August general elections. Fiscal revenues will increase gradually, in line with the copper sector's slow recovery, but real GDP growth in Zambia will still remain subdued in 2016. Government expenditure maintains a focus on unproductive areas of the economy, such as public sector wages, while capital spending remains well below the amount necessary to improve the country's underdeveloped healthcare sector.

Headline Expenditure Forecast

- Pharmaceuticals: ZMW1.67bn (USD190mn) in 2015 to ZMW1.81bn (USD160mn) in 2016; +7.9% in local currency terms and -17.2% in US dollar terms. Forecast in US dollar terms increased compared to the previous quarter.

- Healthcare: ZMW9.48bn (USD1.10bn) in 2015 to ZMW10.75bn (USD960mn) in 2016; +13.4% in local currency terms and -12.9% in US dollar terms. Forecast in US dollar terms increased compared to the previous quarter.