Rapid economic growth rates in Africa are at risk from a global downturn, the head of the International Monetary Fund told African leaders on Monday (February 25), urging them to press ahead with economic reforms.

Meanwhile, on the other side of the continent, other IMF officials were in Zambia to assess economic progress made since the fund, the World Bank and other western financiers reduced the southern African country's foreign debt to 502 million US dollar in 2006 from 7.1 billion.

"The way to tap this potential is both to build physical infrastructure and to improve the business climate by facilitating investment and growth so that even after the commodity boom ends there will be job creation and continued growth," said IMF Director, Miranda Xafa, after a meeting with President Levy Mwanawasa.

Zambia's economy has grown by an average 5 percent in the past six years and it has brought inflation to single digits for the first time in three decades.

The fund said Zambia needed to manage windfall from higher commodity prices wisely to maintain steady economic growth. Copper mining is the cornerstone of the Zambian economy.

"In devising public spending programmes, it is important to take into account the economy's ability to absorb this spending. So, you certainly do not want to get into a boom-bust cycle that other commodity producers have found themselves in, in that while the boom lasts they try to spend it all at once and then when commodity prices decline, there is slow down and possibly recession," added Xafa.

Treasury data showed Zambia received nearly 1.5 billion US dollars in foreign direct investments while earnings in copper exports were around 4.7 billion US dollars in 2007.

The IMF also discussed a new financing package of a "small" undisclosed amount with Zambia after the expiry of the 320 million US dollar, three-year poverty reduction growth facility.

The IMF warned Zambia about managing its debt and emphasised the need to manage the economy in a manner that ordinary persons begin to benefit from.

"I think the challenge now for this economy is having established itself at the level at which it is, can it continue to grow faster in a sustainable way so that this cake grows bigger and then the effects starts trickling down to the common person," said IMF's Africa Director, Peter Gakunu.

Mwanawasa told board members that Zambia would continue with prudent macroeconomic management and economic reforms to attract further foreign direct investments.