Thursday, March 28, 2024

Zambia to cancel, delay more project loans as debt soars-Mwanakatwe

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Finance Minister, Margaret Mwanakatwe
Finance Minister, Margaret Mwanakatwe

Zambia will cancel or delay more approved project loans in a bid to reduce its fiscal deficit and reign in debt service payments, Finance Minister Margaret Mwanakatwe said on Tuesday.

Mrs. Mwanakatwe told a media briefing today that increased debt service payments were having an adverse impact on the budget and there was a need to reduce debts to sustainable levels.

A cabinet meeting held on Monday took note of the high levels of debt service costs over the next three years compared with last year, Mrs. Mwanakatwe said.

She said she would present a list of project loans in the next cabinet meeting to be considered for slowing down, postponing and cancellation.

Mrs Mwanakatwe didn’t identify any of the lenders or projects likely to be affected.

“In doing so, projects that are of an economic nature will not be cancelled as resumption of growth is important to address the economic challenges,” Mrs. Mwanakatwe said.

She said Zambia would also urgently complete energy reforms and renegotiate unsustainable power purchase agreements so the sector does not become a liability.

Zambia’s external debt had increased to $10.178 billion at the end of the first quarter of this year from $10.05 billion at the end of 2018, Mwanakatwe said earlier this month.

The country’s 2018 fiscal deficit stood at 7.5% of gross domestic product (GDP), higher than an earlier government projection of around 7%.

33 COMMENTS

  1. When hh and us in upnd warned you. You called us all sorts of names. My Swiss wife is right when she says most Zambian s are reactionary rather than proactive. They wait for things to go bad before they fix it. One of reasons my Swiss wife fell for me is due to my honesty, prudence with money, hard work and of course my good looks and prowess in the bedroom.

    • Why can’t you just say “my wife” without the ‘Swiss’ part? No wonder you are an economic refugee!

    • First of all Mwanakatwe should resign or be fired…and then we can talk proper economics. I don’t know why Lungu is still keeping her as Finance Minister

    • Anonymous, surely can you ask that of a dimwit who insists on keeping on Chitotela and has the likes of Bowman as a Minister?

    • Glad PF is now accepting the reality that the country is in deep waters financially.

      Advice to you PF GRZ, is to do the following:
      1. Locally, swallow your pride and engage all key political parties;
      2. Scrap the recently circus constitution forum
      3. Follow NDC advice in dealing with KCM as this will among other things stabilise the kwacha
      4. Drop all individuals under investigation immediately from GRZ pending investigation by security wings
      5. Suspend Sales Tax and stick to VAT
      6. Appointment a professional economical body (temp) and non Kaizer or Chanda to review KCM. A few mining professionals that could be involved are – Dr Silane Mwenechanya, Dr Sikamo (with vast mining experience)
      7. Lastly but not the least, ECL must personally address the nation on the current state of…

    • Trump was right when he described some countries as faecal holes. I have no expectations of this shameless woman who once wondered why Zambian’s were scared of debt.

    • What is happening now resonates with the Kubler-Rossi model of dealing with loss. In this case the loss is in the form of loss of control of ones circumstances. The stages are ;
      1.Denial and isolation
      2.Anger
      3.Bargaining
      4. Depression
      5.Acceptance.
      Over the last three years the pee-eff and their brain dead supporters have been on stage one. Some pee-eff sympathisers have overtaken their misleaders and have moved on to stage two, especially on this blog. What the pee-eff will need is lots of will power to go through the process until stage five and maybe the country can come out of this quagmire the country is in.

    • Which economic refugee. He blogging from batoka. Have you even someone abroad write like that. I have been abroad and have never interacted with such a basic character

      He s an illusionist like mulyokela on $ , or Mushota on Nick

  2. After flatly denying on Bloomberg, the lying P.F’s lies like a Pregnancy shows up in broad daylight.
    CHHAKOLWA, & HIS USELESS P.F KUYABEBELE!!

    • What happens to that White Elephant Ferrari in the Sky, Jona loves skipping about in, Eswatini Mansions, 42 Wheelbarrows, ambulance, & Chitotela’s ever expanding pocket, & waistline?
      That’s why you P.F Goons are in this pickle you are in Sleeping Maggie Whiskey!

    • HOW DO YOU CANCEL A LOAN ???????????????????? YOU HAVE TO REPAY IT FIRST !!!!!!!!!!!!! THIS STATEMENT IS MADE BY PEOPLE WHO LOOK AFTER OUR COUNTRIES ECONOMY — NO WONDER WE ARE DROWNING IN DEBT !

  3. Finally cabinet is waking up from slumber. This has always been the reality, trying to impress voters has crippled the economy, and much more so the grand corruption and stealing of public resources.

  4. You are surprised at the state of the economy. Keep on investing and inflating construction projects madam. According to PF economics that’s the route to industrialization. It was written by Sata and Edgar was just implementing the concept. Let’s see where it will land you.

  5. So in the next 3 years we will just be ‘eating’ loan repayments?…..while for them it is business as usual! Damn PF! I curse the day we voted you into power

  6. Just waken up & trying to be seen to be fixing the gate to close when the horses have already bolted!

  7. Closing the stable door after the horse has bolted. We warned you to slow down on your looting especially in road construction. Lungu had a presidential challenger at his disposal but goes on to buy another ridiculously expensive plane when his economy is bleeding. He allows Kampyongo to buy a fire tender at $1 million but insures it at its true value of $250,000! These guys must be locked up

  8. What can we expect from a Cabinet of drunkards? If the cancellation of some projects will also translate into the cancellation of stealing and inflation of their costs then I’m with you. Half of that debt is in people’s pockets. Can you improve conditions of prisons because most of you will end up there. There will be no hiding in hospitals

  9. Make the public service truly professional.Go back to non ethnic recruitment criteria and you will enjoy the true benefits of national diversity and intelligence.Right now you have only have ethnicists and political stooges making decisons. Any further delay strangles the economy even harder.However i give you credit for your unparalleled capacity in dividing the country on ethnic lines.Shameful lot

  10. No matter how qualified you maybe to lead an institution, if you are constantly drunk, you can never make informed decisions. Mwanakatwe has finally sobered and seeing reality. Sober people have been warning this govt far too long and they were simply brushed off as being jealous and envious. Now dawn has arrived and it is a reality that we are in a messy. Unfortunately it looks like it is already too late for redemption.

  11. WHERE IS SUNDAY AND AMOS CHANDA AND KAIZER ZULU SO THAT THEY SCHOOL US THAT THEY HAVE NOT FAILED? EVEN,ANTONIO. IF SOMEONE GIVES AN ADVISE BETTER THEY SEAT AND REASON.NO THAT ARROGANCE BEING DISPLAYED BY THE SAME CHAPS. AND WHERE IS BOWMAN?U CAN NOT HEAR THEM DEBATE CRITICL ISSUES BUT SPEND ALL THERE TIME INSULTING NAME CALLING.AND GBM ICHIWELEWELE

    • Not forgetting Chief Online P.F, Cheerleader aka “Let’s Roll” -Junior Mumba!

  12. Finally stepping up to manage the negative opposition noise surrounding the current economic climate.

    Congratulations for showing the nation you can sit up and take serious action to control ‘ad hoc issues’ that have arisen due to ‘changing international economic climate’. It’s important that PR puts an emphasis on adverse conditions being the cause of some of the wheels on the economic plan/vehicle threatening to come off. This is NOT about bad economic prowess. We can weather the storm by tightening our belts.

    PF, is still able to showcase it’s developmental achievements over the last terms.

  13. One single action that will restore a bit of confidence is to get rid of Finance minister, nothing personal but the lady has failed and now we are all affected. The question is, who in PF can handle this job?

  14. The father is a drunkard together with the mother.

    PF was bad experiment. Honestly didn’t they know it was excessive borrowing. ?? Are these not university graduates to understand basics.

    LUNGU-MUST-GO

  15. All along PF denied vehemently the allegations of grand corruption and inept governance. They trashed all advice to the wind.PF has raped the economy while hoodwinking us by wearing a messiah’s face. Now the time to reckon with has come. Oh dear Maggie, I pity you my big sister of the same mother but different fathers.

  16. Zambia can still be great, zambia can still rise but the onus for that to happen lies with its people. Are united indeed to pull off what may now seem impossible. Yes we can but only if we stand together. Instead of fighting and insulting each other let us learn to collaborate and see the silver lining in the ideas and criticism of others. There is nothing to celebrate about the failings of the government, and we cant fold our arms and say let them sort out the mess they created, that is like letting your own child drown because he was stupid to jump in the water in the first place. Corrective measures must be implemented now.

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