‘Swift action needed to avoid debt crisis’

ZAMBIA is not in a debt crisis but there is need to act swiftly and cooperatively in a similar patriotic spirit as the Jubilee Debt Campaign to ensure that the country does not slide into a debt crisis, a ‘think tank’ comprising eight organisations has said.

Recently, the think tank composed of Civil Society for Poverty Reduction (CSPR), Zambia Association of Manufacturers (ZAM), and the Policy Monitoring and Research Centre (PMRC) hosted a public debt ‘indaba’ in collaboration with the Consumer Unity Trust Society (CUTS), Centre for Trade Policy and Development (CTPD), Jesuit Centre for Theological Reflection (JCTR), the Ministry of Finance and Development Finance Associates (DFA) to work out a blueprint for achieving the Seventh National Development Plan (7NDP) in the wake of growing costs for debt servicing.

The meeting was dubbed “Public Debt Indaba-Addressing Zambia’s economic challenges for a stronger future”.

Speaking in Lusaka yesterday CUTS assistant policy analyst Kangwa Muyunda said in her executive summary that there was need to continue engaging stakeholders across Zambian society to communicate clearly and regularly and to provide updates on the level of debt in Zambia.

Ms Muyunda said she welcomed the recent quarterly updates on the level of debt but that there was need for more information on several issues such as on the pipeline of debt.

She said it was necessary to build collaborative plans to tackle Zambia’s rising debt with a focus on negotiating with the International Monetary Fund (IMF).

She prodded Government to continue its engagement with the IMF with a view to secure balance of payment support and confidence to adequately resolve payment of the Eurobonds.

She said the main concern of Zambia’s debt was affordability saying debt service costs were around 45 percent of revenue.

“We further need to define clear parameters for reporting debt figures in Zambia to enhance clarity of what is under consideration.

“We would like to engage Government to continue to develop policies and spending plans that will support private sector-led growth, create jobs and help reduce Zambia’s high poverty levels,” she said.

Ms Muyunda said the think tank desired to move away from a debate about whether the debt was sustainable or not but to prioritise mitigating the impacts of debt on ordinary Zambians.

She said the ‘think tank’ was committed to engage with the Government to work towards a stronger economic future.