CTPD appeals for clarity on country’s debt

GOVERNMENT needs to be more transparent in debt contraction so that stakeholders are clear about how much the country owes in both external and domestic arrears, Centre for Trade Policy and Development (CTPD) has observed. However, the Government has maintained that Zambia’s external debt stood at US$8.7 billion while domestic debt was at K48.4 billion as at December 2017. CTPD head of programmes and research, Brian Mwiinga , said the Civil Society Organisations (CSOs) had observed that Government and its International partners such as the International Monetary Fund and the World Bank had presented different figures. He was speaking on Friday in Lusaka at a Civil Society State of the Economy media meeting. Mr Mwiinga said the World Bank in its recent report indicated that Zambia’s external debt was over US$13.3 billion. He also said certain loans contracted such as those from the Chinese had not been presented by Government. “Our concern as Civil Society is that we are unclear as to the nature of our debt as there re- mains a lot of questions pertaining to exactly how much debt we have as a country, how the debt is being contracted and how it is being used,” he said. Mr Mwiinga said the CSOs were also concerned with the way Government was issuing statements on how much debt Zambia had and how it was utilised. He cautioned Government that certain projects such as the re-establishment of Zambia Airways and contraction of new road projects were putting pressure on the already existing debt. He said the appetite to borrow for as long as funds were available from one donor to another was a danger to the country’s development agenda. “It is difficult to reduce poverty in Zambia with the current high debt. It is also important to note that the rising debt is crowding out the private sector. Financial institutions prefer to lend money to Government than to the private sector,” he said. Mr Mwiinga had since called for serious financial discipline of the country was to move forward. Speaking at the same function, CUTS international Zambia Centre coordinator, Chenai Mukumba, emphasised the need ensure that it did not choke the economy. Ms Makumba observed that Zambia’s debt remained a concerned to the country’s partners such as the International Monetary Fund and the World Bank.