TIME TO WORK

SO much has been said about the country’s successful debt restructuring agreement with the official creditors and bondholders’ such that it appears as though it would end the economic woes affecting the nation.

Government on Monday reached an agreement with its bondholders to restructure US$3.5 billion Eurobonds after intense protracted negotiations.

While the agreement is a welcome relief, it is important for Zambians to realise that the hoped-for benefits would come to nought if they do not apply their efforts to grow the economy.

Zambians, and indeed the government must move away from the current debate of clinching the deal to initiate programmes that will bring development to the country and grow the economy.

Yes, among the many immediate benefits are that the government will be paying less to what it owes creditors, thus making it possible to spend money on other national needs.

As Finance and National Planning Minister Situmbeko Musokotwane said in parliament yesterday, the debt service payment that will be made by the government will be significantly lowered than what would have been if the debt was not restructured.

He said this will free up financial resources that would be directed to other key economic sectors.

“Government and bondholders are working across the clock to finalise documentation required to implement the agreement,” Dr Musokotwane said in a ministerial statement.

To ensure that the debt relief is used to grow the economy, we expect the government to promote investment in local industry instead of depending on foreign investment.

It does not make economic sense to entice foreigners to invest in the country when local manufacturers are crying for government support in growing their businesses by offering them tax incentives.

The much-talked about value -addition must be seen in the manner in which the home-based manufacturers are able to use the local resources to produce goods that could be exported.

Thus, while the country is likely to pay less, success will lie in investing in appropriate schemes to propel the country into the industrial age, far beyond primary raw material production.

While we realise that industrialisation and value addition hold the key, it is important that Government nurture and support indigenous small medium enterprises especially those run by women and youth who normally have little education and experience.

The so-called Asian tigers have succeeded by promoting small scale production that developed into medium and large-scale enterprises.

We note that Government is scouting for K3.9 million needed to host the country’s first ever national indaba for Micro Small and Medium Entrepreneurs (MSMEs) and cooperatives, slated to take place from April 10-11 in Lusaka.

Small and Medium Enterprises Development Minister Elias Mubanga said the indaba was expected to be attended by over 700 MSMEs and cooperatives from across the country, a number of business providers and other players in the ecosystem.

Mr Mubanga expressed optimism that the indaba would provide valuable lessons and opportunities for collaboration to achieve its objective of having an integrated coordinating framework for MSMEs and cooperative development programmes.

We have no doubt that through the indaba, Government and other stakeholders would come up with pragmatic programmes that will help make a difference in enhancing economic growth.