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Alba Iulia
Saturday, June 6, 2020

Zambia is better off immediately defaulting on external debt-Sean Tembo

Headlines Zambia is better off immediately defaulting on external debt-Sean Tembo

Patriots for Economic progress Leader Sean Tembo says Zambia is better off immediately defaulting on external debt in order to preserve some capacity for the country to meet its domestic debt obligations as and when they fall due.

Mr Tembo says the prevailing circumstances would give the country legal protection even if government decides to default on external debt obligations.

He has urged the Attorney General to invoke the force majeure clause in the external debt agreements and write to creditors to inform them that the COVID-19 global pandemic has brought about circumstances that make it impossible for Zambia to meet its obligations under the respective loan agreements.

Mr Tembo said Government shoukd move fast and consider the above measures saying this is not a time for lethargy if the country is going to successfully navigate the economic storm that the global COVID-19 pandemic has brought about.

He added that it is also worth noting that if Zambia is not able to maintain some financial muscle during this period of the pandemic, it will be very difficult for the country to successfully fight the COVID-19 pandemic itself.

Mr Tembo said therefore, the Minister of Finance is as important as the Minister of Health in the fight against COVID-19.

He said PEP is ready and willing to temporarily shelve their differences with the PF and its Government and actively contribute to the country’s planning in the fight against the COVID-19 pandemic.

Mr Tembo said Zambia is facing an existential threat which all Zambians need to treat as such, not only in words but in deeds as well.

And Mr Tembo says it is common cause that the social-distancing guidelines recently announced by President Lungu have resulted in the total shutdown of some economic sectors such as tourism, entertainment, religious services, etcetera, while several private companies have decided to suspend operations and lay off most of their employees.

He said equally, a number of mining companies on the Copperbelt and North-Western provinces, who are a key source of forex, have also started to suspend their operations in the interest of protecting their workers from COVID-19.

Mr Tembo said is also common cause that the lockdowns that have been effected in several of Zambia’s neighboring countries such as DRC Congo, Botswana, South Africa and Zimbabwe will result in extremely low traffic for goods at our borders.

He said in terms of non-tax revenue such as fees and levies, there is no doubt that Government’s main sources are fees related to the movement of motor vehicles such as those collected by RTSA, NRFA, and fuel levies.

Mr Tembo said with Zambians being advised to stay indoors resulting in reduced traffic on the road, there is no doubt that Government’s non-tax revenues have equally dwindled and will continue to dwindle for the unforeseeable future.

[Read 1,208 times, 1 reads today]

13 COMMENTS

  1. “Patriots for Economic progress Leader Sean Tembo says Zambia is better off immediately defaulting on external debt in order to preserve some capacity for the country to meet its domestic debt obligations as and when they fall due.”-LT

    That’s not having faith in Zambian people, please hand over the helm we take care of it.

    You borrowed in our name and we’re not afraid to fix it. when it comes to external debt stop blaming on the coronavirus.

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  2. This Patriotic Front GRZ has been inviting and flirting with debt default for a long time. We could all see this disaster coming since 3yrs ago.

  3. I don’t agree. We can renegotiate terms should things come to it. Other wise I say let us press on. Rather than thinking of doom, we zambian and Africa have not been affected as much by covid19. This offers us a comparative advantage to supply certain good and services to the global market while Europeans are in this dire state. Look what China is doing. Industry is up and running supplying medical products to Europe. I believe we have a lot to offer. I have faith in us unlike our pals in opposition

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  4. Another one aspiring for the highest office in the land, yet absolutely clueless. Default and you’ll see what happens to the Kwacha. Just yesterdays talk of wanting to renegotiate the terms of our debt, sent the Kwacha in a downward spiral. Just making statements, clueless statements at that, only to appear important and intelligent, yet the total opposite. We have too many of these types of characters in our country.

  5. The line up should be HH for President, Vice CK, Finance Sean Tembo, Commerce Sinkamba, Andyford Presidential Affairs(no smiling any how please, even frown where need be). Thanks Sean Tembo, we are better off serving our internal people. Don’t listen to that character who misled his boss, and he is even out of there and blogging as damage control – it shall not work

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  6. I doubt Sean Tembo has ever had a credit card or obtained a loan in his life or anyone who talks about re-negotiations

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  7. I think Lungu should have left this man in jail.

    You borrowed and shared the money amongst yourselves politicians. Now you do not want to pay?

    You have very bad manners. And you wonder why Africa does not develop.

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  8. I doubt this guy has ever had a credit card or obtained a loan in his life or anyone who talks about re-negotiations

  9. @Kaizer Zulu
    I somewhat agree with you, apart from the last bit.
    Sean is proposing that GRZ should play with a live grenade. Invoking force majuere will the $hitstorm of an economic crisis our country will face.

  10. Lusaka Times… Can you publish a disclaimer that this gentleman who is impersonating Kaizer Zulu is not the Kaizer Zulu people know. Otherwise we shall report this to ZICTA

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  11. Weka me you silly boy. I don’t care if you think I am fake. Report to zicta. I have the direct line to the top management of zicta and can call them for you if you want. I don’t need to prove to you that I am real. Who are you

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  12. Kaizar Zulu indeed… The real Kaizer Zulu does not YAP YAP like you. Yap Yap on every topic … YAPPY YAPPY ….. INDEED …Impersonation is a serious crime…. The Real Kaizer Zulu does not comment on any topic… FYONSE FYONSE…. Am sure you can also comment on COSMOLOGY …. You must be some unemployed low life overzealous cadre …… Even just your language!! Sorry it can not be Kaizer Zulu. I have talked to KZ. He is not you….

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