New Zambia cabinet signals compromises, not solutions

Significance

It is the new government's first major policy statement, which in part reflects the influence of the 'pro-business' camp to whom President Edgar Lungu owes political debts following his narrow victory in January's poll. However, competing priorities means this does not herald coherent economic policy or constitutional reform agenda.

Impacts

• If Nevers Mumba and his MMD party -- which won 0.7% -- merge with the PF, this could boost Lungu's position, but only marginally.
• Mumba is supported by only a minority of MMD parliamentarians, more likely to defect to the opposition UPND.
• If the governments takes aggressive steps towards Barrick Gold, miners may continue to delay over 2 billion dollars in projects.