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Alba Iulia
Friday, September 25, 2020

Africa should not pay interest on debt owed to West due to Coronavirus-Dr Habaazoka

Economy Africa should not pay interest on debt owed to West due to...

The Economic Association of Zambia has observed that Africa’s economies risks collapsing if the African Union does not collectively agree and declare that it will not pay interest on debt for the duration of the Corona virus pandemic.

Association President Lubinda Habaazoka says with shrinking economic activities in the wake of the corona virus , African countries are increasingly finding it difficult to collect revenue.

Dr Haabazoka has predicted that the first country likely to experience an economic meltdown is possibly South Africa as it has already grounded it airline and many employees have been sent home.

He says with commodity prices falling below what was projected for the decade, Africa should collectively engage multilateral institutions to see the way forward.

Dr Habaazoka said the IMF which was created to create a stable international monetary system must come out and play its role.

“The African Economy will collapse if the African Union does not meet and collectively declare that they won’t pay interest on debt for the duration of the Corona crisis,” Dr Habaazoka said.

”With shrinking economic activities, countries are increasingly finding it difficult to collect revenue and the first country to fall will be probably SA with a huge airline that has many employees who currently can’t generate revenue because the airline is grounded. With commodity prices falling below what was forecasted for the decade, Africa should collectively engage multilateral institutions to see the way forward.“

He added, “Africa unlike OECD countries doesn’t have reserve currencies and consequently is unable to print money for bailouts without causing inflation.”

“The IMF was created in 1944 at Bretton Woods to create a stable international monetary system and as such the time has come for them to play their role for the world.”

42 COMMENTS

  1. With a PhD from Russia am sure you have not heard of LOAN LEGAL DOCUMENTS….. check what you sign before enjoying the money.

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  2. Very backward thinking.

    Who told you to borrow money ? The same money politicians have stolen?

    Was corona virus in the contracts you signed when you were borrowing?

    Very dull man, this fat cat.

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  3. But they can pay interest on debt owed to Russia, China etc? Whn people say, he has a screw loose, they hv a point.

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  4. Look at this fat boy..only a few years ago he was supporting reckless borrowing and stating that it was sustainable.

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  5. Of course if the west themselves are in crisis how can you expect those from developing economies to pay back interest on loans. That would be unethical . I agree with my brother here. I look forward to another family meal with you. We were made to feel welcome by your lovely Russian wife last time we visited.kz

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  6. Zambia number one Economist…..I would rather listen to my grade 8 daughter than this schooled moron.

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  7. The challenge will be settling euro bond coupon payments when the dollar is at K18. Private Kaloba is less forgiving.

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  8. This is not a soccer tournament where you qualify by the loss of someone in another group. Lipilani nkongole pela. And as @Dio notes the stolen loot can easily take care of us in the interim.

  9. Dont just criticize without due thought. What is happening around the world is Force Majeure.

    What Habazoka has said makes big sense.

    I urge our government to lobby this matter upwards, though it may be difficult for private loans

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  10. If Africa had more of such guys, we would probably be developed. Sadly, it’s full of colonised educated f.0.0.ls. Diaspora?? 90% ifiwelewele!! Putin laughed that Africans are the only race that go to first world economies, get exposure, professions, skills etc but can’t go back develop their own continent…

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  11. Charity begins at home. What measures has our government put in place to cushion its citizens losing out on income due to the virus? America is paying its citizens for loss of normal income. Even Kenya has announced measures (like reduced taxes on its people, etc).

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  12. Exchange rate collapsing is due to corona virus. Finding excuses to pay for extremely reckless borrowing is now due to corona virus. Last time there was no rain, it was HH. I am sick and tired of these, when are they going please so that we can have a breath of fresh air though I am mindful that it will take up to 5 years to fix this damage.

  13. The Economic Association of Zambia! Honestly? This is calibre of leadership that represents you? What an embarassment to the fraternity. UNZA even has the fall to retain this kind of logic. A lupen noise maker…please we can do better.
    There was a time just this demonstration of could get you impeached for being disrepute to the profession. UNZA has produced people who have headed the Min of Finance and Central Bank and the world Bank. This guy is a dunderhead!

  14. This must apply microfinance institutions and Bank of that rush to DDACC and penalties. If the country is crying for leniency what more and individuals

  15. Is this the best economic advice this dullest of all Tongas can give ? Defaulting of debts ???

    With a fat useless turd like him at ECZ , you think any economic sense can come out of Zambia ,?

  16. Habazoka’s approach to economics is dangerous, you can’t borrow from me and later you tell me that you won’t pay my interest because you have a funeral or predicament. Let these African countries pay what they borrowed and interest is part of it. The west or China need their money simple. Moreover they are feeling the impact of the Corona virus spreading and they doing all they can with their resources.

  17. Stop misleading likes of Edgar Lungu, the man is thriller and he doesn’t know that he is in charge of the national affairs. I think HH has tremendous well to represent us in the absence of Lungu and his girlfriend Inonge Wina

  18. You cannot polish a turd! How about interest on local debts government is owing? How about people with bank loans and mortgages?

  19. Baba thats nkhongole and its agreements and whatever it takes to legalise the nkhongole. So ba Engineer stop dreaming about not paying when the agreements are already there. Just pay kwasila. Besides I dont think there is a clause or an agreement that has a COVID-19 as part of the credit agreement – kulibe baba. Ba engineer – my foot!
    Disaster!!!!

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  20. @spaka what has tonga got to do with what Habazoka is saying? Why do you bring in tribal tone in every conversation. Like most people have said debt is debt and it should paid back with or without Coronavirus because the contracts signed had no clause to accomodate natural calamities. What I expected Habazoka to say is AU should lobby to defer loan repayments and not declare. How do you declare freedom when you are behind bars?

  21. How come this fat “economist” has not been appointed something in PF cabinet? That is where you find such reasoning. I know the position of finance is capably occupied. How about the position of cabinet minister for fake economics?

  22. How come this fat “economist” has not been appointed something in PF cabinet? That is where you find such reasoning. I know the position of finance is capably occupied. How about the position of cabinet minister for fake economics?

  23. How come this pretence of “economist” has not been appointed something in PF cabinet? That is where you find such reasoning. I know the position of finance is capably occupied. How about the position of cabinet minister for fake economics?

  24. Those condemning Habazoka on this one are fo.olish and typical Zambian id-iots. Always negative about their own country – cannot think beyond their noses on how best to help the country but have acquired PhDs in armchair criticisms – useless mo.rons. And I am not a fan of this confused government, by the way.

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  25. There’s actually nothing wrong with Russian papers. It’s just this guy’s attitude. The name Wassily Leontief may not ring a bell to most of you but he was a Russian-born American who won the Nobel prize in Economics. He was really more of a mathematician than an economist.

  26. When one can’t contribute constructively, they resort to personal attacks and insults. the intellectual bankruptcy of many leaves much to be desired. It’s not about pf, upnd or the messenger himself, lets put our minds together and try and find solutions to these very trying times.

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  27. It’s really about the argument Habazoka put across. Only Western creditors were picked on for interest suspension. Why not Russians and Chinese? After all their debt is US dollar denominated. I admit there’s a problem but u carry weight with creditors during debt restructuring negotiations if u can demonstrate good resource husbandry. People will not even open negotiations unless we can demonstrate that we spent the money reasonably well.

  28. Be realistic guys, weather money was stolen by those in public office Zambia in the face of the corona virus cannot manage to pay because we need money to fight the corona virus.. If they pay the debts first i dont what will remain to fight the virus..
    God bless

  29. There’s no westerner who doesn’t know that Russia is one if not the most developed countries in areas of science, technology and space science not to mention industry and economic innovations. I’d find it hard to subscribe to any sane engineer or economist who for any reason find anything to attack the source of one’s qualifications instead of the substance of the argument. Those in the habit of attacking H,zooka’s Russian qualifications seem to imply western is best which is a very misplaced notion

  30. phew no wonder Zambia’s ecoconomy is in ICU with such reasoning from the “elite” muleikalafye or you go and beat up one like you do at chitas. this doc is a sheer waste of space just adding up numbers of doctors in Zambia, anyway he is only there for statistics purposes.

  31. If its true he is the president of that association believe you me, bekesala ichalo ichi one day ( this country will be closed one day)

  32. Grounding of South African Airways cannot be used as barometer to predict meltdown of South African economy.

    Since the 1990s, SAA has been a bottomless pit for the South African Government. It has been the axis of corruption, State Capture and endless bailouts. Year-in-Year-Out.

    If anything, this is golden riddance. Covid-19 is a blessing in disguise for grounding SAA.

    Tell us something else.

  33. Am sure all the people that called him names and all sorts of insults have eaten a humble pie because his suggestion is what the IMF and World Bank have done!!!

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  34. It’s the bond markets that Zambia borrowed from and not multilaterals. IMF and WB don’t control the bond markets. Bondholders want their money on maturity and interest every month in btwn. You know wht u committed the country to. And you were urging Chikwanda on in parliament to increase govt debt ceiling. He did but where are we now?

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