Zambia Institute for Policy Analysis and Research (ZIPAR) Executive Director Pamela Kabaso says debt accumulation has grown at a fast rate from under 20 percent in 2010 to the current 47 percent which is worrisome.
Speaking at the ZIPAR Debt Management Conference themed “Zambia’s Public Debt; The Elephant in the room”, Dr. Kabaso said various stakeholders have expressed concern that the increased borrowing rate is making Zambia head towards debt distress.
Dr. Kabaso states that the conference will provided a platform that will bring to the fore needed solutions to the economic debt the country has accumulated.
Dr. Kabaso said that debt management must be prioritized to protect the country’s economy from a surge in borrowing costs through policy reformation and refinement.
“This debt accumulation has grown at a fast rate from under 20 percent in 2010 to the current 47 percent and this is worrisome” Dr. Kabaso said
And International Monetary Fund (IMF) Resident Representative Alfredo Baldini said the pace Zambia is taking in repaying its external debts is quiet low and puts authority in pressure for the need to more borrowing in order to pay off other debts which may eventually lead to more incurred debts.
Baldini said if the country continues to borrow funds, foreign investors will be hesitant to operate in the country as the effects of high debts will result in higher tax tariffs that may cause a decline in the number of people investing in Zambia
Zambia Institute for Policy Analysis and Research (ZIPAR) Senior Research Officer Caesar Cheelo has urged government to improve budget credibility and other financial aspects to enhance Zambia’s financial sector.
“The pace Zambia is taking in repaying its external debts is quiet low and puts authority in pressure for the need to more borrowing in order to pay off other debts which may eventually lead to more incurred debts” Baldini said
Debt enslaves And is a terrible disease to be proud of. Our Govt plays politics over responsibility. We need men and women who will stand for what is right even when no one stands for it. Doing what is right has no wrong time while doing wrong has no right time.
Sonta po epo yaya inkongole
Ignore these nonenties Zambia is doing well
I came from Zambia with disgust but the economy is well placed
Nick met my family and most Zambians kept looking at my fiance
he is mine, me me me
Thanks
BB2014,2016
mushota,
there is medication you can take to turn your skin white , why are you suffering in black skin ?
Sata’s PF is like a dad who borrows to impress his children.
Under VISION-LESS lungu & PF, Zambia is cursed with a poor crop of leaders. We told you, but you insisted that Dununa Reverse would solve all our problems. See now what damage you’ve caused.
Zambian leaders should take time to watch documentaries of great leaders like the late THAI king from Thailand,South korea,Singapore and Botswana.i used the word watch because many zambians lack reading culture.
Thats because drinking culture takes up most of their time…with ZB irresponsibly reducing beer further you can forget about.
Sata is the one who created this big problem of debt. it was wrong for the Zambians in the first place to have put that semiliterate man at the helm of this country. may his soul rest in peace.
My impression is that someone is happy to keep Zambia’s debts rising because it fits in their concept. It does’nt make sense to continue lending to someone if you’re not sure if they’ll pay back. This is the reason why the EU pulled the emergency break on Greece and imposed stringent economic measure instead.
EU pulled the emergency brake because it affects them if Greece goes down it affects their banks…you are the very selfsame people who supported this govt and its recklessness – why cant you call a spade a spade. Why do you want to blame the lender? Do you blame your bank for lending you if you buy a Range Rover instead of irrigation equipment for your farm?
Chikwanda is one of the main culprits. He and Mutati must be jailed for taking advantage of millions of uneducated Zambians who voted for them. They have stolen a lot of money in dubious contracts and reckless borrowing sprees. Zambia is now among the among the least in terms of human capacity development because all the money has been pocketed. We cannot compete in the world of development because we produce only thieves. I remember Chikwanda saying Zambia’s debt levels were sustainable – I wish he and Mutati were not born at all.
Unfortunately it is too late to start doing anything about this, the damage has already been done. Irresponsible borrowing of massive amounts of money by the PF Government is already at the stage where Zambia is unable to keep up the payments ON THE INTEREST! When the PRINCIPAL AMOUNT is due, economic collapse is inevitable.
If this money had been wisely used to grow the productivity of the economy, we may have had a chance of surviving. But it was not. It was mismanaged, misused and STOLEN, and now Zambia is at the point where we cannot even raise enough revenue for the National Budget without BORROWING EVEN MORE! Mutati is saying 20% of the budget will have to be from aid from outside!
We have sold our children into SLAVERY
meanwhile the PF kaponyas on LT and dancing and sontarring…….
The Chinese leader is visionary with ambitious projects like a rail track connecting China to Europe …he knows that his population is growing when those Chinese debts are due; the Chines will simply take African land and resources instead. Lazy foooools who have never sweated for money like Edgar can not see that far in the future.
Frederick Chiluba was on the mission to pay back the whole debt he inherited from UNIP. He paid 50% of it. The IMF didn’t like it. Debt makes us their slave. They sponsored Captain Solo but the coup failed.
Do you think your credit card company likes it when you payback your whole balance at the end of the month instead of minimum 5%? Why do you want to blame the lender?
Bwafya sana. Kaloba ala te fintu. Where is the subway mr Chirwa used to sing about? All that money have been pocketed by few individuals awe sure pa Z paba akantu.
Prof. Chriwa had ambitious plans especially for ZRL…if you let him carry on our trains would be travelling at 120KPH and a large chunk of haulage would be transported by Rail but thieving politicians and the elite would let him as they are all in the haulage business. Today ZRL is still a sad sight derailment and 48 hour trips at 20 kph is the norm….that’s what corruption and greed of a few wicked shortsighted people does!!
Ba mambala imwe nasheniko ikongole.
All nations take on money to develop! Zambia is doing very well! We are seeing the fruit! Please don’t listen to alarmists! Hazaluza Hagain!
Namwalans are just jealousy! Go Zambia, go! Happy Birth Day! UPND is evil, very evil!
Couldn’t grow Zambia Airways,failed to steady ZamRail and now you think you can successfully manage some debt that is even bigger?
It’s understood that mountains of rising debt to that structure could be not healthy for the economic but again deleveraging for the Zambian economy requires a gradual well worked out strategy well smoothened restrain at the same time supported by a workable transmission mechanisms in the monetary system if Zambia will continue even in these levels to rebalance and achieve significant economic benefits We need to be very careful as we work out the solutions as we reengineer our long-term fiscal challenges that comes with these levels but again gradual and smoothen approach gives a good landing
Addressing the levels of debt should be done…
in a well-planned gradual manner effecting fiscal and money policies in a well-researched manner Policy shifts on Gove balance sheet that affects revenues and expenditure non and discretionally spends will require stabilisation like the Good minister has shown in his Zambia Plus as He looks and longs for long-term growth in Real GNP growth for Zambia
We know and have seen the Low GDP forecasted and implied in the GOOD minister’s 2018 Budget and forecasted the outlook for Zambia to 2020 With this low growth prospects in the short-term to near long-term The good minister will as understood have a challenge of Financing the Balance of budget…
looking at the portfolio and flexible Composition of Market Debt for 2018 to 2020 period without getting further levels of debt as he restructure his composites Here typically has a higher levels of deficits from projected revenues and outlays lower than the projected economic growth creating that overall rising debt burden amidst low growth levels He wished like the 19th CPC in China that he would double the Growth forecast between 2018 to 2020 to avoid the debt overhung in his infrastructure spend Clearly he has a challenge and He still can navigate if he has the initiative and creativity as he has shown already
No doubt the levels of debt…
and composition as he the minister restructures would mean that He will often going to the market to borrow at higher borrowing costs This in no doubt will have Financing costs that would further worsen the situation as and repayments of maturing inevitable But even then It’s not as though the minister cannot rise to the fiscal challenge and engage in fiscal brickmanship He will take charge and move from stability to growth that growth that trickles to Zambians
The minister is on course and has shown commitment to stem the levels of debt He requires support from all Zambians to ensure that growth even amidst debt levels still remains positive if not…
super cycle Even in china there is a process of de-leveraging as credit is tightened with poor quality that the People have identified should be doubled (GROWTH) between 2017 to 2020
The competent minister will firmly take charge and it’s not about the minister but the Nation and its Institutional and no individual would be more superior but certain traits yes will count He knows that stabilizing debt levels is a good fiscal policy management and it’s in his good Zambia Plus strategy
He knows he has to work out the revenues and expenditure to manage the structural imbalance at the same time not sacrificing areas that would register some growth for…
the economy We need also to avoid fiscal brickmanship tactics and see long-term interventions as the way to sustain the economy avoiding artificial crisis that comes with setting debt levels or ceilings at various spending cliffs that creates the debts In Zambia with a positive superior growth
The competent minister will firmly take charge and it’s not about the minister but the Nation and its Institutional and no individual would be more superior but certain traits yes will count He knows that stabilizing debt levels is a good fiscal policy management and it’s in his good Zambia Plus strategy
Debt sustainability when you look at Budget measures and Financing the budget in Marketable bonds
TB Bills,Foreign Debt or Retail should not be at the expense of growth When you can grow by 4% its better but if not Its not worthy it
I like the OECDs though especially as they emphasise debt sustainability ceilings and little on growth Sometimes you can fast track growth in infrastructure and others and register super economic gains So the pros and cons must be balanced longterm
okay Darrius thanks//
I also like it when people say Gov. will compete with Private Businesses (crowding) with little emphasis on Gov. as an enabler of Financing Transmission mechanisms to effect growth by Private sector that on its own without Gov. borrowing cannot enable
So see the structure and growth of the Zambian economy and look long-term Growth and well being
??????????
There is also the danger of not doing something Others have a situation were growth is super yet Debt to GDP is 200% plus but they are still working the economies to ensure stability and then that needed Growth
The minister should be encouraged in his path of Zambia Plus as he restructures creating capacity in the sectors especially those that would give him the most yield shortest at the same time working to activate and insulate the Financial system to support the weaker fiscal
He cannot simply sit and do nothing in these situations of not so bright growth and growing debt levels He has to work the economy and restructure as per ZIPAR here…
It is time you began to worry about your own family and your own failures and stop disrespecting the hard-working government! They are doing a great job! UPND will never be in government! They should just continue giving out Free Mansions!
or Free Masons!