President Edgar Lungu speaking during swearing in ceremony

Here are the risks and costs to the economy and country

By Kalima Nkonde

President Lungu lashed out at all critics of excessive government borrowing and vowed to continue borrowing during his recent visit to Garden compound on tour of cholera affected areas.

“When we borrow, we do not borrow to eat but to improve people’s living standards, so those who say we can’t borrow, get out!” President Lungu exclaimed rather undiplomatically.

The statement got most experts and analysts by surprise in that it sent the wrong signals to the financial markets whose expectation is that Zambia was on the road to slowing down on its borrowing in the light of the IMF suspension of talks on the $1.3 billion bailout due to excessive borrowing.

This article is meant to contribute to the debate by trying to put the President’s statement in context and to explain in simple terms, but in some detail, the consequences of excessive domestic and foreign borrowing. The adverse effects of excessive debt has been done in a piecemeal fashion, with most Zambians, especially the young people ,who will be mostly affected, not understanding the potential harmful effects that debt will have on their lives.

One hopes that for once, Zambians can look at this important issue in a non partisan fashion. The issues of borrowing and corruption, should unite Zambians as their effects do not choose whether one belongs to the ruling Party or the Opposition or they are Independent. All Zambians suffer the consequences apart from those in power and the elite aligned to the ruling party who normally are the greatest beneficiaries of the status quo. There is overwhelming empirical evidence in academic economic circles that excessive borrowing and corruption go hand and in hand.

Zambia’s estimated public debt

There is so much debate about what the actual public debt of Zambia amounts to. However, we all now know that it is very high in the light of the recent IMF disclosure that Zambia is the most highly indebted nation in Sub Sahara Africa. This means our public debt is higher than bigger economies like Nigeria, South Africa, Kenya and Angola all in the name of development but no country ever developed on borrowings.

The borrowing binge has been driven by the unprecedented increase in the debt ceiling by the PF government of 800% in external borrowing from K20 billion in 2011 to K160 billion in 2017 and an increase from K13 billion in domestic borrowing in 2011 to K30billion in 2017 which is an increase of 131%.

According to the 2018 budget, Zambia’s public debt is $12.45 billion, which is about 60% of GDP of $20.9billion.This government figure is, however, disputed by most analysts. There are some analysts who estimate that Zambia’s external debt is about $17 billion(the figure the Finance Minister mentioned in one of the speeches to parliament, before correcting himself to $7.2 billion ), whereas the domestic debt is said to be around $6 billion making the total public debt to be $23. This is a rise of $19.5 billion or 557% from the $3.5 billion in 2011 when the PF administration took over.

The IMF’s estimate of Zambia’s GDP for 2017 is $20.9billion and if indeed our total debt is about $23billion, then our Debt/ GDP ratio is 110% which is way above the internationally accepted combined domestic and foreign Debt/GDP ratio, which is 65% (40% foreign and 25% domestic). The government ought to urgently come out with credible debt figures otherwise the speculation will continue.

Who was President Lungu telling to get out?

The people who President Lungu must have been telling to get out are: former finance Minister Alexander Chikwanda, Bank of Zambia governor Dr. Denny Kalyalya, Finance minister Felix Mutati, Zambia Institute for policy Analysis and Research(ZIPAR), the International Monetary fund (IMF) and many more experts who understand how the economy works. These are the ones who have commented and cautioned about the country’s level of indebtedness. President Lungu somehow appears to know better than them.

The following are the comments from the various parties and experts that have criticized the Zambian government for excessive borrowing:

“The outstanding public and publicly guaranteed debt rose sharply from 36 percent of GDP at end-2014 to 60 percent at end-2016, driven largely by external borrowing and the impact of exchange rate depreciation. Directors expressed concern at the pace at which public debt, especially external debt, has increased and now put Zambia at high risk of debt distress,” IMF Head office’s press statement after suspending the $1.3 billion bail out talks with Zambia.

“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” , Said IMF Resident Representative to Zambia, Alfredo Baldini when addressing ZIPAR conference on Debt.

“That’s one area that we really need to put a hand on so that it doesn’t overheat the economy, If that happens then all these interest rates we’re talking about will go up very significantly,” Bank Of Zambia Governor, Denny Kalyalya commenting on surging borrowing costs of Zambia in an interview in Washington.

“We must focus on finishing ongoing projects before we embark on new ones. And we must reduce our appetite to contract debt. We must also look at other innovative ways of raising finance,” Finance Minister, Felix Mutati addressing Parliament in October, 2017.

“The IMF has expressed worries about Zambia’s debt profile, those concerns are not far-fetched but anyway, somehow our debt profile is high and going in future, going forward we should be a bit more prudent especially those loans which are not for projects which are single sourced, where there is no tender and so on and so we have to be careful and I think government is doing just that,” Former Finance Minister Alexander Chikwanda as quoted by News Diggers, a Zambian on line publication.

“This debt accumulation has grown at a fast rate from under 20 percent in 2010 to the current 47 percent and this is worrisome”, Zambia Institute for Policy Analysis and Research (ZIPAR) Executive Director Dr. Pamela Kabaso, speaking at the ZIPAR Debt Management Conference.

The risks and costs of excessive debt

Borrowing whether at household, company and national level is important but it is the extent to which one borrows in relation to their income and ability to repay the loan that is crucial. No responsible Chief Executive Officer whether at company or national level goes on a borrowing binge without looking at the potential risks and taking measures to mitigate against such risks. The question is: does President Lungu understand the potential risks? It is hoped that this article will assist him as it is written by a layman and a non economist.

Zambia has excessively borrowed since 2012. We have been down this debt trap road before, but this time, the consequences may be worse as we have borrowed heavily from the international private capital market. The following are the potential costs and risks to the economy and the country of excessive debt:

1. The country’s financial risk as measured by the Debt/ GDP ratio will continue rising making Zambia to be considered as a risky country to lend to because the probability of not being paid back will be considered to be high by lenders .The country’s ability to borrow (debt capacity) will be reduced.

2. The government’s increased and continued domestic borrowing will continue to negatively affect the private sector in that there will be little money left in the banking system for investment and working capital. Also, banks will prefer to lend to government and will demand high interest rates to lend to private sector. In the 2018 budget alone, government plans to borrow an additional K11.2 billion($1.2billion).Consequently, there will be little increased economic activity in private sector and unemployment will continue to be high especially among the youth which is a potential time bomb. Government ‘s excessive borrowing is actually killing jobs and not creating them.

3. The debt rating agencies like Standard and Poor, Fitch and Moody’s will downgrade Zambia’s credit worthiness due to the high default risk resulting in the Eurobond servicing costs to go up and future lenders demanding higher interest rates in order to lend to Zambia.

4. Zambia is currently spending about 22% of its domestic revenue on servicing loans. In view of President Lungu’s stance to continue borrowing, this percentage will continue to increase meaning that more money will be needed to service loans rather than social services like health, education, farmers’ subsidies, social cash transfers and even less will be available to maintain the infrastructure that is being built.

5. The Zambian kwacha may depreciate – lose value- as there will no savings to built up reserves as more money will go to pay loans. In addition, foreign investors inflows will reduce as Zambia will not be an attractive investment destination as highly indebted countries with high fiscal deficits are not attractive to investors. The depreciation of kwacha will result in high cost of living as Zambia is dependent on imports. The country’s inflation may go up as it is greatly influenced by the kwacha exchange rate.

6. There will be continued scarcity of liquidity (shortage of cash to households and businesses) in the economy as the government will spend the bulk of its revenue servicing debts will fail to pay its suppliers and contractors. Civil servants may start getting their salaries late.

7. Borrowing whether local or foreign require kwacha to be raised from Zambians for repayment. In terns of foreign borrowings, the principal debt and interest repayment can easily balloon by mere adverse exchange rate change movement. In 2011, the dollar exchange rate was K4.86 to a dollar and in January,2018 it is about K10 which is a 105% depreciation of the kwacha. The implication is that foreign debt can increase in kwacha terms and can even double. This means excessive borrowing will lead to more kwacha required to be raised and higher taxes and levies will inevitably be imposed on Zambians.

8. In the light of the current economic projections of the GDP growth rates, the continued excessive foreign borrowing by Zambia puts it at risk of sovereign default. This refers to failure by a Government to pay its debts and consequently making it more difficult and expensive to borrow further. In such an eventuality, Zambia may be forced to seek funds from the International Monetary Fund (IMF) as a last resort. This time around, it will not be only for balance of payments support, but for Sovereign Debt Restructuring like Greece did in 2010. The Fund will impose punitive conditions such as reduction in corruption, imposition of austerity measures as well as tax raising measures.

9. Zambia will fall back in a debt trap where it will start to borrow in order to pay other debts and go back to being classified as a Poor Highly Indebted Nation like in the 1980s and 1990s. Zambia will be dancing to the tune of creditors like in the past – just as Greece is doing.

10. The combined consequences of the above risks would be a threat to the country’s peace and stability as it happened under Dr. Kenneth Kaunda’s regime in 1990 and the Arab spring recently.

In a nutshell, the continued excessive borrowing by government may result in the kwacha depreciating, increased unemployment, higher taxes, high interest rates, high cost of living, increased risk of sovereign debt default and slower economic growth. Zambia’s excessive borrowing is a ticking time bomb. In the short term, it all looks all rosy and critics can be told to get out but sooner or later, say in 2 to 5 years’ time, the chickens will come home to roost if no serious and bold risk mitigating measures are taken now by heeding experts’ advice. The recent commendable improvements in the economy in 2016/17 in terms of stable exchange rates, low inflation rates, downward trend in interest rates, improved investor confidence and consequential inflows in foreign investments through participation in government bonds and treasury bills etc will sooner or later evaporate. Zambia’s excessive borrowing and the related corruption may well turn out to be President Lungu, the PF administration and the Zambian economy’s Achilles heel.

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52 COMMENTS

  1. Mr President; just consult uncle Mukombwe and he will tell you that you do borrow to eat; that’s why you and your ministers and Kaizer are fat and building all over Lusaka;

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    • “I am VISION-LESS”, Lungu proclaimed. Imwe ati uyu wine usha kwata vision ewo tulefyaya (This vision-less man is the one we want).

      From having $3 Billion in reserves during Mwanawasa’s time to $23 Billion DEBT with nothing to show for. Some people need to be sent to at least 50 years in PRISON for such recklessness & looting.

      Your F00LISH decision is costing innocent victims who didn’t vote for or want this corrupt LAZY thief who steals money to build casinos, which are in effect glorified taverns.

      In this years budget, K9-Billion has being allocated to debt servicing, an amount larger than what is allocated to health.

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    • That’s the language we used when we was kids in kk era,” GET OUT” ala fuseki chimoneni ichikulu chose, this was usually over toba umutwe and sweet mbalala ku zanzi, when the big fellow questions your appetite and source of ngwees, i can’t believe this language is still appealing to some individuals in the 21st century.

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    • “…so those who say we can’t borrow, get out!” President Lungu exclaimed rather undiplomatically”. Oh my!! I thought Trump was worse!! I still maintain my position as before, No “love” for President Lungu. The man has absolutely no clue on how to run a country. The sad part is that he is not even trying to change course.

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    • Mr President you sound very arrogant am PF but I don’t agree with you on your borrowing stance. The way things are going i don’t see our party PF winning in 2021.I really don’t !

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    • “When we borrow, we do not borrow to eat but to improve people’s living standards, so those who say we can’t borrow, get out!”

      How would people believe the statement above when his financial pocket has ballooned from a meager ZMK 2m to over ZMK 23m in less than two years?

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    • To Lungu, If you are going to pay the debt yourself, then you have the right to say “Get Out”. If not, which is the case, we the tax-payers & citizens who are suffering due to your reckless borrowing & THEFT have the right to say enough is enough.

      We’ve been down this Kaloba road under KK’s UNIP & FTJ’s MMD. It was very, very painful. If you think you’ve stolen enough to cushion yourself & your children’s children’s children, think again.

      *FTJ’s son was in court last week for stealing a small girls cell-phone to buy drugs.

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  2. Lungu please if you have failed. Step down. Zambia is bigger than a group of professional failures (PF). Why make future generations suffer by borrowing. Can Lungu provide specific detail on how exactly the previous eurobonds and other borrowing have been spent. Who is advising to help him take caution on certain comments that cam erode investor confidence and leave with Chinese only

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    • Lungus PF = borrow and steal, borrow and steal, borrow and steal, borrow and steal, borrow and steal.

      When are Zambian going to say enough is enough? We do not want bakoswe mumapoto in State House!

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  3. Haha ,you kicked RB out whose 6.5% economy was splendid only to bring in these clueless kachasu drinkers who over borrowed and tanked the economy.

    Now RB’s matter of small corruption (never proved fyi) seems tiny compared to the PF monster problem of $13bn debt.

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    • UPND is the one the caused this problem by not supporting RB in 2011 against Sata. If UPND had supported MMD, the Zambian economy would have been miles ahead now. But under five is too arrogant to concede that now one wants his as head head kachema.

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    • RB is the most evil man & started the looting spree through his sons with oil deals with Nigeria, negotiating crude oil supply contracts even though they were NOT govt officials, renovation of Building Society House at exorbitant prices by their own Kenyan business partners, Pedical road contract award etc. RB is Lungu’s main consultant on how to loot, appoint tribemates, close down Post Newspaper, compromise ECZ, rig elections, refuse to accept election loss etc.

      After Sata came to power, one of RB’s sons went to “exile” in Sandton South Africa. We used to see him driving a Porsche Cayenne & Z4 BMW.

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  4. Awe too bad mwe. The thing is we can not borrow if we have no means to payback. Better we borrow and pump it in the sector that will bring about revenue for the government in a long term. For example, we borrow and build markets for the street vendors. GRZ can then make money from the daily rates they receive from the marketeers for using the facilities. This way GRZ can raise money to pay off the debt. But in Zambia, these markets are run by cadres so GRZ loses out on revenue. Or if we borrow and improve our agriculture which in turn will boost production and processing of produce for export yes if done this way then we are doing right. NOT borrow and buy Hearses, mobile hospitals, solar milling, Zambia airways etc. these projects do not have a place in a capitalist country like Zambia…

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    • a capitalist country like Zambia because they need continuous funding from GRZ. GRZ has no money to fund such projects. The other place we have put borrowed money is the Tazara and Zambia railways. These two companies are white elephants until GRZ stops use of trucks to transport copper/oil cross boarder then these two companies will run profitable.

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  5. We repeatedly advised the Zambians to vote wisely.
    ECL and PF are very corrupt scumbags with no heart for the masses.

    Zambia is headed for doom.

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    • I think Zambians DID vote wisely. That is not where the problem is. It was what was done with their vote AFTER they voted!

      And that is why the PETITION was never heard!

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    • You had 11 options but failed to choose the right choice, our American and British friends usually have only two options (a Russian roulette kind of affair) but they are 99% on point.

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  6. MMD had dust roads and fatening the real capitalists at the expense of a common Zambian. Look at Lusaka today all roads are tarred including Matero, Chawama, Chainda, Mandevu, Kabwata, Kamwala, Bauleni, Chilenje, Chalala etc. In MMD period the only places that had good roads, were, Roma, Woodlands, Kabulonga, Longacres etc. Learn to appreciate you Seduces.

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  7. Now you heard from the horse’s mouth, get out you critics hahahaha! Well Mr. President as much as you have borrowed you have not improved any lives in the country except for your friends and those close to you. Surely all the borrowed could have done wonders in many different sectors. You and your cronies are busy increasing taxes on top of your borrowing. You have do not feel the consequences because everything is free for you and your inner circles. I would rather you stop borrowing on our behalf because we still remain in poverty with poor services all around us anyway.

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  8. Zambians especially the less educated will forget this in 2021. The masses are always fooled during elections.

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  9. Zambia’s best selling newspaper the Daily Nation and the Daily Mail carried this story on 24th December 2017:
    “Lungu pledges to upgrade shanty compounds-GOVERNMENT will do whatever is necessary to upgrade shanty compounds in a quest to improve the living standard of the people of Zambia and bring to an end incidences of Cholera outbreak. President Edgar Lungu said this in Lusaka yesterday when he toured Garden Township to check on cholera interventions mounted so far. The Head of state noted that cholera outbreak was as a result of unplanned settlements hence the need to upgrade. He said if it means borrowing, government will borrow for development and ensure that cholera was eradicated. “If it means borrowing, we will borrow for development. We will borrow to improve the lives of…

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    • …the people,” he said. He said it was his government’s desire to play a proactive role to prevent disease outbreaks by ensuring a healthy environment. “For now the idea is to reduce or eradicate the current outbreak of cholera and a long-term solution is what we are discussing with Ministry of Health, Local Government, Ministry Housing and other ministries involved.“We want to bring about programmes to upgrade settlements of shanties. You know Lusaka is a big shanty settlement and we need to upgrade it so that people can have clean and safe running water and decent toilets. We will definitely overcome cholera,” President Lungu said.
      The Daily Mail Reported: “NO MORE SHANTIES-GOVERNMENT will in the next five to 10 years upgrade all the shanty settlements across the country to ensure…

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    • …citizens live in a hygienic and habitable environment. President Edgar Lungu said the move is meant to ensure the citizenry has access to decent housing, adding that this will subsequently prevent the outbreak of water-borne diseases such as cholera. “What we have discovered is that at independence, kwalifye mayikulile [people were constructing houses anyhow] and this is the price we are paying, we have all these shanties.“Going forward, we will begin planning settlements because as you know, Lusaka is a big shanty, so we have to upgrade these shanties to ensure there is reticulated water and toilets. This is an inherited problem and this is the job we were given by Zambians,” he said.
      News Diggers, a publication being run by a team that use to work for the Post and are close to Fred…

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    • ….M’Membe reported: “Those saying we can’t borrow, get out – Lungu-When we borrow, we don’t borrow to eat but to improve people’s living standards, so those who say we can’t borrow, get out! President Edgar Lungu exclaimed today….STORY PERSONALLY DONE BY MUKOSHA FUNGA, the lady arrested with M’Membe for publishing classified government information.
      Kalima Nkonde has based this whole article on skewed reports that lack merit. His analysis therefore lacks the substance to effectively analyse or criticize the government because his basis is based on LIES AND FAKE NEWS!!!!!! Try to be more objective Nkonde next time, try to tell the nation the TRUTH!!!!!

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  10. I like the extensiveness of the article and what Dr Smith said below as quoted on your LT Analysis of Zambia Debt portfolio should not be simply a mere sustainability approach only

    In looking and analysis the debt portfolio for Zambia one should look at the real options embedded You can see it in the comments for Dr smith here on LT

    “A senior economist at the World Bank says Zambia still has an opportunity for borrowing but must be careful of certain factors.
    Gregory Smith has advised the country to go for cheaper loans of longer duration with a lower rate as compared to the opposite.

    Dr Smith feels concessional lending should be Zambia’s priority to ensure inclusive development.

    And the World Bank says it will continue…

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  11. to support Zambia’s efforts to improve domestic revenue.”

    I like the positive comments and advisory by Dr Smith but one would have loved him though to have gone further to analyses the term structure in those debt expansions and bubble formations, clearly giving guidance and the real options that Zambia has in these financing methods

    Its known that Debt sustainability is basically a fundamentally concept of probability concept Its not cast in certainty If you take the opportunity now and invest for the future you may realize the gains from economies even when you are all debt but for Zambia with its potential to reengineer financially and growth, that is farfetched in the…

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  12. shorterm as you implement and manage the balance sheet and not a forever position. I have seen the global economic prospects by IMF and seen the potential in increased economic activities in mining and non-traditional exports for Zambia and those Zambians who want to profit

    You can optimize the potential you have in financing instruments and realize greater returns in increased exports that never would have been given the stalled and same slow level of investments as seen in the past and beat the risks that Debt presents and make it sustainable given your already position and good real options for now and in the future are available

    There is a lot of potential real options…

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  13. beyond the Debt sustainability analysis in exports and others in present terms if you can only look for value Zambia has the quality to refinance or auction even its current debt at reduced costs apart from IMF deals and others ,given its potential growth prospects and attractiveness long-term created in the investments in quality infrastructure , that could never have come with traditional crowded funding methods

    Countries that are spending and investing in infrastructure have become very competitive and robust Most of that spending has been a portfolio of debt and equity and other financial incentives

    The guiding principle though in debt sustainability should be the basic…

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  14. principle but not necessary the final but if you can realize potential in increased returns when you see the fortunes even when your leverage is something else , you may prioties and optimize the investments in financing incentives and achieve the much needed superior super growth that will help you address the current levels of debts you have that you would never have been able to efficiently and effectively address at the same level of investments

    The debt management and procurement in Zambia should be though be managed well and term structures like Dr smith has observed in mismatch aligned to avoid nonperformance

    You are talking about yields and rates The economy of Zambia is…

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  15. is currently functionally delicate You may need to protect and avoid stalling or locking Gov into a fiscal brinkmanship at this stage Allow Government to complete its economical projects and realize gains There more positive externalities in investing into infrastructure than the fiscal debt sustainability side We should guard against putting the economy into a stall recession or slow gear or retardation as such is not good also for the yields and yield curves being explained

    Investing in infrastructure like other asset classes has a strategy and I am sure those educated and entrusted to manage have gladly been reminded of your points They have a clear plan in financing and…

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  16. and contracting further debt with clearly supported repayment plans There are more gains in fast tracking investments that increases the economies and Zambia’s competitiveness

    The yields and yield curves for Zambia will only improve for the better economic indicators if investments in infrastructure becomes likeably comparable to others and competitive if such a quality of infrastructure is achieved as in the short term the and the commissioned projects contributes to reinvestments the Probabilistic debt sustainability will be of no use but for now it show be a basic measure but not necessary a key yardstick measure Zambia has a lot of potential untapped

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  17. and the GRZ has a macro prudential approach towards debt and investing avoiding the consequences at the same time protecting employment and value for Zambia

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  18. What inheritance should we leave to our children in terms of basic infrastructure? Should we accumulate more in foreign exchange reserves and let them come and put up or repair the archaic infrastructure (decrepit hospitals, schools and roads). Are we assuming these children will be so dumb that they wont be able to figure out how to manage the affairs of their country (debt payment)? Especially that there is another school of thought (World Bank) that states that as a country we have potential for growth in the future in terms of increased mining activities and non traditional exports. The scourge we need to eradicate is corruption and not stop development.

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    • David. What we want is political leadership with the ability to generate own wealth for the country not one that borrows and commits out children to repay. It exactly the same scenario as a parent (father) who maintains his family thorough borrowed money. Such a man leads his family on borrowed time. A good CEO of any company should resign innovative way of creating revenue for the company to run and not contracting bank loans for survival.

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  19. Just when I read of lungus fraud conviction before he was president , I knew lungu is the wrong man to be president but gave him the benefit of dought , but then came the unprecedented election violence over seen by lungu and I was convinced that this is a very corrupt man…..since then we have high public perceptions of high level corruption which lungu does not even try to address or deny…..my initial convictions about this lungu corrupt theif who is a fraud convict being a corrupt theif have been totally vindicated…….

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  20. This is when people should know that this man was not born to be a servant of the zambian people,he just forced him self for that position.People made a very mistake by giving this man a chance of being a president for PF he has no vision for the country i can`t wait for 2021,let him step down he is doing nothing,being guided by former corrupt leader R-bamba.Please lets open up our eyes we see who can bring joy to us than this guys.There are miss managing the tax money we pay.I wish the late president sata was around,we can`t keep on suffering like this.Let`s VOTE PF out of office in 2021.PF OUT WE ARE TIED OF YOU,poor leadership quality.MULETULILA AMASUKU PAMUTWE.

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  21. This clown of a president has gotten so big – headed from corruption and abject arrogance, always talking down sound advice for moving this country forward. He has completely forgotten that the people of Zambia are his employers and he is an employee! He insist that he will borrow against professional advice. We know he is adamant because he will “cream off” all the money borrowed. That is his style and that of his cabal of thieves. He should use some of the money he earned from over priced fire tenders to buy garbage collection trucks for the councils as a control measure to fight cholera! The “band aid” solutions to fight the disease of filth and absence of hygiene are not sustainable.

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  22. Lungu has really become a law unto himself. His concern is only to fatten his bank account and go a spree to build properties all over town. He lives 10 minutes away from UTH, but has never taken time to see the deplorable state the hospital is in, but is quick to jump on a plane to visit other countries on any excuse of visit a construction site in Muchinga Province because the Chinese Contractor gives him an envelop at the end of the visit! This man should never have been voted into State House, he is a menace and a liability to true development of this country.

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  23. Foolish article,Get the hell out!!!!!!!! We shall borrow more even this year.Cant you see we have given you
    a special fiscal deficit of <6% again.

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  24. Obviously the author of this poorly articulated article is a UPND stooge. The reason why most of you are poor is because you just want to eat and not invest.
    What’s wrong with borrowing when you know it will yield desired results for development or growth? This author reminds of someone who owns a large piece of land and calls it a farm when it lies idle. When the neighbour next door with a small piece develops his your start thinking that he either stole or is corrupt.
    That’s the Tonga mentality with many malnourished cows and yet their families have never tasted beef. Stop bring your poor mentality here. How much does US owe the world and yet you call it developed?

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    • We owe a purported $17 billion and are now running back to the IMF to help us balance the books , unemployment at all time high , students go without meal allowances and citizens taxes unrelentesly , show us after the 17 billion were is the ” borrow to yield desired results for development or growth? ” ??? Are you refering to lungus bank balance ???

      Because after $17 billion spent thus far and still right in the capital city Lusaka millions of people drink water from dirty wells and use pit latrines…..

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  25. Africa’s Second Largest copper producing country and could even be the food Basket of SOUTHERN AND EASTERN AFRICA and be the ECONOMICAL HUB of the same We could have best of everything …but NO we are just going to Beg to get by..chaba shani kanshi pa zambia mwe bantu

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  26. People want to know how are we going to pay back when we borrow.

    I don’t think PF ministration understands obligation that comes with borrowing.

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  27. So sad how most of the people above are duped by fake news, they literally get jolts of high voltage hate and go into fits??!!! Pathetic.

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  28. I see you all worked up. Some make sense, some do not. In the meantime, life is here and now and they are living it and lining their pockets. The rest? Wallow in prayers and cholera.

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  29. This Dununa Reversing Koswe Mumphoto has shown itself incapable of delivering anything other than a rolling cycle of directionless pompous indignity. Perhaps we are condemned to watch it for the foreseeable future. But would it really kill the Zambian Army to give us all a break and take out at least the criminals sorrounding this pompous alpha Koswe like Gen Chiwenga did next door, sure!

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