Debt servicingMFEZ industrialwill starve growth,yards on course says Zanaco
yards in the LS- Works are going
CONSTRUCTION of and the contractor
industrial yards in the on site.
Lusaka South Multi“Once that Facility debt Economic service,” Zanaco done, said. we will
Zone (LS-MFEZ) It said resources to for see most SMEs which important will boost economic local the affairs zone and
ZANACO has warned that
participation functions in were the cut down from there,” 1.4 Mr
the increased size of the
percent is expected to K21.5 to billion said. after
2021 national budget may area
allocations in on the roads, internaHe also observed
add on the ballooning debt be completed
tional airports and the strategic need to increase
and starve economic affairs next 12 months.
food reserves took knocks incentives of to
if not well implemented. Participation
41.1 percent, 68.9 willing percent to invest
Additionally, the financial of local investors
and 21.6 percent respectively. the zone. Mr
institution has expressed conin the economic
This, Zanaco explained, cern about the financing stratzone is currently expressed concern
was in view of allocations to egy of the plan. low due to, among that Zambia had
election activities and Mem
The 2021 national budget other reasons, the competition from
bers of Parliament’s gratuity. announced last week on Friminimum investment countries such
According to Zanaco, inday has gone up 12.8 percent of US$500,000 creased budgetary which allocation Rwanda, Kenya, to K119.6 billion from K106 some to locals education, say is health, Egypt, social South billion 2020 budget. prohibitive. and environment protection Mozambique
ZANACO indicated that LS-MFEZ come at Business the back of Zimbabwe reducthat the increase in the budget Development tions on defence, housing better and incentives. amount of K13.6 billion was Manager, community Francis amenities, Mr public Kunda said wholly swallowed by an inKunda, order said safety and recreation/ minimum US$ crease in allocations towards construction culture/religion. works of 000 investment debt service obligations which the industrial “Put together, yards the investors expendto qualify
had gone up by K13.7 million.
were iture currently side on shows that available the inincentives
The commercial bank said
course. creased 2021 budget was size a will limiting
this in its anatomy of Zambia’s
Mr feed Kunda the monster in local balloonbusinesses.
2021 budget: An Embodi
explained ing debt that while the starving however ecosaid
ment of Economic Recovery
industrial nomic yards, affairs,” it warned. had been lobbying and Resilience prepared by once completed, Meanwhile, Zanaco its parent said Ministry Chewe Mwila, Gerald Soko next year’s financing Commerce strategy Trade
would boost local
and Patrick Chileshe. would raid domestic credit
participation in the Industry which
“Although the budget size market, which already had a was up 12.8 percent comeconomic zones. talking to Ministry
bias of lending to Government pared to this year’s, the inHe explained in Finance to improve
at the expense of the private crease was not a fresh injecan interview sector. that incentives. tion of cash to stimulate the the industrial “The K17.4 yards billion “For (equivinvestors economy but was mainly due would alent enable to 14.6 small percent qualify, of the one has to the increase in debt service and total medium budget) sized we intend invest minimum to obligations under the general entrepreneurs borrow from to domestic set US$500,000 lenders public service function. up businesses will surely continue in the disadvansome of the local
“The general services zone. taging the productive investors private that function was up 31.1 percent “That sector one and is on therefore the limiting puts into factor. to K57.8 billion (48.3 percent) table question and we have the feasibility you of invest the less with over 84 percent going to Citizen growth Economic target. S$500, 000 you and Empowerment not be entitled Commission who are incentives,” Mr constructing industrial said.