Bloomberg reports that Zambia’s credit profile is constrained by it high debt burden which will increase even more, Moody’s Investors Service said.
The Zambia’s debt will exceed 75 percent of gross domestic product this year, from around 62 percent in 2017, Daniela Re Fraschini, an analyst at Moody’s, said Thursday in an emailed statement.
“Debt affordability is weak relative to peers and fiscal policy credibility is limited, diminished by a series of fiscal slippages,” she said.
Zambia’s external debt climbed to $10.05 billion by the end of last year from $8.74 billion a year earlier as the government continued to spend on building programs despite warnings from the International Monetary Fund and ratings companies that the burden is becoming excessive.
Zambia, Africa’s second-biggest copper producer, has failed to persuade the IMF to sign off on a package to boost its budget.
Moody’s cut Zambia’s credit rating to Caa1, seven levels below investment grade, in July.
The company said it could lower the assessment further if credit pressures constraining the rating were to worsen and the likelihood of the government undergoing some form of default increases.
Everything seems to be in reverse gear and yet PF goons sees them otherwise. We are doomed with this cliché of incorrigibles masquerading as leaders and yet they are cadres who are lost in the wilderness. We have lost direction in all aspect of human endeavor yet we pretend as if everything is alright. The leaders we have today have no clout to talk about whatsoever. All they are interested in is their personal aggrandizement and by- elections that keep draining our coffers of our much needed revenue. Our bonds are the worst performing in the world, our debt burden will soon choke all of us into oblivion. We need to think properly come 2021 otherwise we are doomed.
And yet when we criticize we are labeled as tribalists and HH sympathizers. We dont care about political parties. we are concerned about our country and its prospects.
And the drunk Maggie claimed that she will pay it off with Zambia’s Gold and Mukula logs….these recklesss excuses for human beings ….where is that educated foooooool to type let’s roll!!
On such articles you wont find Senior Citizen laughing away…he is too ashamed to comment unless useless articles about foooools in opposition!!
Why do you Zambian media always have to re-report Bloomberg? Can’t you yourselves speak to the rating agencies and ask them your own questions?
Please Mr President can you address the nation to just assure us. You are too quiet on the economic issue. We need a press conference where it should come from you directly that things are fine. Don’t leave it to your juniors, its leading to loss of confidence in the economy. As things stand we are getting a gloomy picture from these foreign organisations and its working against us. I recall when Levy Mwanawasa died, the kwacha depreciated but after Goerge Kunda quickly announced that the govt would respect the provision of the constitution to hold elections within 90 days, things stabilised. Your silence implies that either you have no answers for us or things are worse than they are.
Have you heard of the brenhurst foundation, an imperilalist cover to loot Africas , and Zambias minerals in particular……..this foundation employed the ex Nigerian president obsanjo and they work with all these companies like Bloomberg, moodies , Fuchs and IMF , they all work for HH to dicreadit Zambia…..
There is no problem here, they are making only noise because they want our minerals that HH promised them….
Yes,President Lungu came with the fresh air after President Sata died by holding a Press Conference an indicator we’d have Press Conferences such as the writer is mentioning to induce confidence. Alas it was the first and last,he’s afraid to face the media who are armed with the facts in this article.
So Amos Chandra thunders from the comfort of State House as the country is sinking into the abyss amidst the song of infrastructure that and new districts which was never there before
Alas I almost got killed on a pothole before Kafulafuta Bridge which has blown many a motorist’s tyre on the Luanshya-Mpongwe road,which infrastructure which roads has taken this debt,not wild inflated projects?
2.1 you need to have ur head checked
has nothing to tell us, to him all is well. you can just tell by what Margaret Mwakatwe keeps bragging about economical growth which we can’t see.
Mr. Lungu has managed to accomplish in less than 4yrs, what took Mugabe 30yrs. The total collapse of an economy. Congrat your excellency. A truly stellar performance.
And it’s funny how some of our friends from PF are saying this is been occastrated by HH minions. Really? IMF, Bloomberg, Moody are all supporters of HH? When you have this level of thinking, is it surprising that we are were we are?
Nope…not surprising, because there are only a few of you and me who think differently.
The majority are here to talk tribal…..and that is the saddest part
LUNGU-MUST-GO
Am not saying kbf must come
PF must identify a good economic managers. Why did you fire Mutati
Why dont you invite Magande.
These PF worshipers are just worried about how they can survive outside tax payers money. And the call for lungu to stand is based on fear and insecurity. Not national interest
These PF cadres in cabinet have no guarantee a new president in pf will keep and protect them
They remember whta happened to Richard Sakala and Chiluba
Have you heard of the brenhurst foundation, an imperilalist cover to loot Africas , and Zambias minerals in particular……..this foundation employed the ex Nigerian president obsanjo and they work with all these companies like Bloomberg, moodies , Fuchs and IMF , they all work for HH to dicreadit Zambia…..
There is no problem here, they are making only noise because they want our minerals that HH promised them….
Wow.
Wow! I am speechless! This level of ignorance is astounding! It’s shocking!
Even when there is clear evidence of an imploding economy. Even when government employees go unpaid for 6months. Even when university lecturers go unpaid because government has failed to fund the institution. Even when medicines are in short supply in hospitals. Even when our foreign reserves are alarmingly low and our currency is about to spiral. When our some of our embassies haven’t been financed for months. Even with all this evidence, you can blurt out such nonsense.
You think your PF foreign service position will preserve you forever. smh.
@JourneyMan, Spaka is being sarcastic. Truth be told, we are in deep trouble and it appears our leaders are hoping the problem can just be wished-away.
JourneyMan
Sorry to comfuse you , regular LT bloggers will remember that what I wrote above were exactly the stories they the PF were peddling and getting themselves worked up on…….
Such replies are really sickening .To think a whole person has convinced themselves of such shallow thoughts when we have real life problems is sad .Wake up from your illusions please go to night school or something and understand things as they are .Such ignorance is alarming
Thanks for clarifying @soaks.
Spaka*
We’re in trouble, this has nothing to do with Blomberg etc,building airports we don’t need, starting an airline when all common sense and technocrats have warned. Ex Zambia Airways Captain Sakala is very Zambian, he among others have warned the wrong path to no avail.
South African Airways is sinking in debt and being bankrolled by the government in a financial position, how will Zambia manage
The imperialist nationalism is a chameleon way of hiding from reality. Toll Plazas costing 10 times the cost of similar ones in neighboring countries, roads costing 10 times more, over invoicing, over pricing wasn’t done by Blomberg! PF did it,against all advice…
Of course, the conspiracy theorists here have been saying what @Spaka has just quoted above
@ Spaka
You tell these people please. Roads are being built, his excellency our humble leader, great leader, Edgar Chagwa Lungu most high and ever loving has done wonders. Now these folks at IMF, Brenthurst, Morgan Chase et al., have to tell us that Zambia’s economic debt rating might be downgraded! Imperialists! With the recent bullish Kwacha and VERY low electricity tariffs, who are these IMF people telling us stranger doctrines? Our great leader has performed wonders and we are the most democratic country in Africa, a beacon of free and fair elections. What cheekyness is this? Sho!!
Warlord
On point …..
Moody’s Investors Service publication of Zambia’s economic performance is something which I predicted in 2016. Am not an expert in the field of economics and investment but quite knowledgeable. I said in next 5 years from 2016 we will suffer alot from the results of economic mismanagement to the extent of some people challenging me emotionally. The latest major investor is Dangote and that is during MMD,the rest are mere Chinese contractors in form AVIC whose salaries for Zambian supervisors is K392 per month or shopping malls from South Africa. No manufacturing,no processing industries and extremely poor agricultural management performance. The PF government is talking about NDF,GBM re-joining PF,insults towards HH,2021 election the list going.No FDI and excess borrowing of easy to…
No FDI and excess borrowing of easy to steal Chinese loans.On careless expenditure can only be seen by the expert outside the country and those from the opposition . Proof of poor economic is our macroeconomic and monetary policies.High unemployment levels,changes or introduction in taxes,rapid inflation rate,unstable local currency,volatile exchange rate .All these are economic indicators which foreign embassies are sending to their countries ,but in this country the president travelled 52 times to woo investors in the same period Tanzanian president travelled 4 times.The foreign investors follow what their embassies’ advise not presidential tour programs.
As long as P.F rules, whichever Corrupt tainted leader, Jona, Fube. G.B.M, name them, they all have the same mindset as G.B.M, in the morning they believe in Working for Zambia to uplift Citizens wellbeing, yet the same day in the evening they believe in servicing their Bellies.
I now believe the rumour G.B.M was paid U$D 50 Million by Jona, when Farmers, Zampost workers, Lecturers have NOT BEEN PAID.
G.B.M is living proof of these types of tricksters, & Charlatans, including Mulenga Sata, Miles Sampa, Lifwekelo, name them.
To them THE BELLY RULES, & HENCE ZAMBIA IS DEAD. Enjoy your Leaders!!
We once had a regular blogger 2020vision who predicted s very rosy picture ….including $1 at k6,
Where is he ? Is he one of those cops who went on shooting rampage because of frustrations ????
I think I have had enough of PF cadres cooked up stories like those of Spaka and the rest at this point I will debunk them next it’s tribalism, you can’t keep blaming a single guy for Zambia is problems when he is still in the opposition, if HH employed me I would clean up is name so that we can finally have real debts boarded on policies not these non issues like tribalism, selling off Zambia e.t.c
Spaka my bro I apologise I thought you where one of those senseless cadres that don’t know the difference between being patriotism and caderism I just tired of the non issues PF cadres bring on this forum when are we going to talk policy we keep discussing one man (HH) is he already president. At this point o don’t buy it that PF cadres can’t see the signs am sure they already anticipating & preparing for the economical melt down maybe they have even started converting their kwacha to dollar and opening offshore accounts while the rest of us seat blindly debating them
I am waiting for Habazoka and his EAZ to comment. Uwafitala akaimwena umwine.
You mean our “economy” expert educated in communist “economics”?
Spaka do you know that some of the signs of mental illness are Detachment from reality (delusions), paranoia or hallucinations,Trouble understanding and relating to situations and to people e.t.c I wanted to let this go but let me tell you the truth when RB was president why didn’t HH use all those organisations to talk ill about Zambias economy I seem to remember it was during RB’s tenure that we where upgraded to a middle income nation, why didn’t he use IMF until now .Do you really think if HH had such backup how is it possible to even lose an election do you know how powerful those organisations are getting HH would be a simple task if it is true they have been backing him up you have mental issues ba Spaka
Follow my posts , I am only repeating what the pf rats on LT have been telling us ……Oval head , upnd cader, malinso, kudos etal…..
Spaka was being sarcastic dude, he hates PF as much as me and you and anyone who is sane.
Dudelove
Remember the story about brenhurst foundation ???
Before that there was one about HH and the openhighmers……
Hehehehe
Where are all the P.F bloggers who always see HH as the cause of all misfortune to this country? Follow the linear accumulation of debt in the above article and tell us who was in power!! You have Maggie Mwanakatwe bluffing at Bloomberg and lying through her teeth to the country that her meetings with IMF were successful and yet this article says the opposite; this country is retrogressing fast and slogan chanting dunderheads are either burying their heads in the sand or they don’t understand the implications of facts and figures
You won’t see any of the LT PF chaps on this string…..they are still eating eith pf but are having second thpughts while their relatives are now feeling the pinch,
These heavy matters are way, way beyond Koswe mu mpotos ability to resolve. His in over his head. All his good at is manipulating various arms of GRZ to fight his political battles for him, aimless travel around the world, and other foolish expenditures like buying a jet and new vehicles for his incompetent ministers, etc. Dancing like a bafoon at political rallies is what his best at. If only they would be as determined about fixing the economy as they are about stealing and fixing their political enemies, Zambia would surely be well on its way to overcoming its various challenges..
Ba PF cadre get this through your thick heads if HH had backup like IMF and the other organisations you keep linking him to he would have been the next president after Levy .P Mwanawasa so let us debt on real issues
Spaka my bro I apologise I thought you where one of those s€ns£l€ss cadres that don’t know the difference between being patriotism and caderism I just tired of the non issues PF cadres bring on this forum when are we going to talk policy we keep discussing one man (HH) is he already president. At this point o don’t buy it that PF cadres can’t see the signs am sure they already anticipating & preparing for the economical melt down maybe they have even started converting their kwacha to dollar and opening offshore accounts while the rest of us seat blindly debating them
The Zambian
Believe it or not , what I wrote above were exactly the stories being peddled from statehouse and amplified by the PF LT bloggers……
This is Greek to our majority unschooled cadres.
Debt to GDP ratio of 75% simply means out of every K100 GRZ collects in taxes, K75 goes to pay Kaloba, leaving K25 for GRZ to pay Civil servants, buy Medicines and Teargas!
A reasonable GRZ would have called for an National Economy Forum / Indaba the way Levy did but alas, it’s all about 2021 PF political survival, in the name of Dialogue! At this rate of debt to GDP ratio, we’ll soon go beyond 100%, meaning, our National debt will overtake our earning potential (GDP). This is the reason GRZ is increasing Electricity tariffs to help our GDP! There is pain ahead!
Where General Godfrey Miiyanda??? What happened to him??? Has he also been bought by Cipantepante no vision. Lately not in the media or been quoted in a telephone interview.
LT,. To really work up an argument based on fact; why not ask Minister of Finance, to make a comment on this, so we get a perspective of how she sees this?
**This story, was emailed to HH by an analyst. SORRY @Spaka, but without verification it’s just idle chatter.***
Yes the Roads are nice and look at all those new houses Zambians are building all over the p!ace. Where are the loans coming from? Yes, Zambians ARE benefitting from all sorts of financing for business etc. Through this borrowing. What our, ‘Maggie,’ is attempting to do, is to create SMEs, improve business environment so as to generate Zambian based GDP. The borrowing is worrying but if everyone concentrates on developmental activities in the economy, we will have enough to pay back.
Patriot
I can tell you that those nice houses you see being build are spillovers from the Eurobonds …..now the Eurobonds have dried , you will see suffering
Spaka my compatriot there are folks here who don’t care about facts on the ground. You made my day with your scathing sarcasm which some brothers missed! You’re really witty. Where is nubian princess and local patriot?
So what. Advanced economy Govts have a debt to GDP ratios of more than 200%. Bloomberg is so patronizing and screwing many minds. Has pf Govt failed to service any debt? Resounding no. That’s what matters. If you borrow and can repay, you can borrow as much as you want. The structure of the debt is such that less than 20% of GDP is spent on debt service. This is easy to finance by cutting workshops, ensuring tax dodgers pay direct taxes in tolls, cost-reflective ZESCO tariffs and removal of other subsidies.
Devt is not a meek mind process. The country should not have rosy numbers like under MMD without building schools, roads, hospitals and reducing poverty numbers. Pf is delivering that. Eat that naysayer.
OK @ mbeba na kolwe, so its fine that we should now fail to pay salaries for govt workers as long as we build infrastructure? There is what we call planning. Those economies you refer to are not in this ditch we find ourselves in.
“Keep Calm and Carry On.”