Economist Noel Nkhoma has disagreed with some opposition Leaders reasoning over government’s decision to contract a foreign firm Lazard to restructure Zambia’s debt.
Mr Nkhoma says the arguments advanced by NAREP President Steve Nyirenda, DP President Harry Kalaba and PeP President Sean Tembo on the financial advisor, he disagrees with their stance opposing the move.
He has insisted that unless they understand the full mandate of the financial advisor, then only will they appreciate that the Assignment is not as simple as they think.
Mr Nkhoma has challenged the critics to name one Zambian firm which successfully delivered on a similar Assignment.
“Perhaps l should ask, do they know that when Zambia was contracting the Euro Bond, a financial advisor and debt underwriter were contracted and paid colossal sums of money in hard currency”, he has said.
Mr Nkhoma said the tenders were not even publicised like the case is now and the Finance Minister should be applauded for his transparency on the matter.
Zambia appointed Lazard Freres as financial adviser to help it restructure its external debt, the Finance Ministry said a move widely opposed by the opposition.
According to Bloomberg, Zambia is seeking to avert a debt crisis looming even before the Covid-19 pandemic throttled the global economy.
The government is hoping that the process will be able to move quickly enough to convince the International Monetary Fund that it’s on track to achieving debt sustainability, unlocking much-needed emergency funding.
Zambia invited proposals in March for advisers for what it called a liability management exercise. The southern African nation had about $11.2 billion of external debt at the end of December, after years of excessive borrowing pushed up interest costs and drained its foreign reserves. The government said it won’t force any lenders into a restructuring.
Tomberknocle
the reasoning of economists in Zambia leaves much to be desired I.D.I.O.T.s
What is this crap implying? We don’t have brains in Zambia? You got independence from the white people why go back to them to come rescue you from your mess and follly? Put that money in the economy which is already ailing due the scarcity of what you want to throw to the already rich. Did seer 1 suck all your reasoning from your brains?
Most people from Eastern Province are fools who will support anything fellow easterners do.
If this is the caliber of economists we have in Zambia I now see why government wants to hire a foreign firm. These economists and financial advisers in Zambia don’t have confidence in themselves to sort out economic and financial problems in the country. Shame on this nkhoma guy wasted brains indeed
Are these not the same orifices that were against the idea of engaging Scotland yard to come and help with investigating the gassing phenomenon and according to them they said engaging a foreign organization is unpatriotic after 50 years of independence, now what has changed for them to forego Zambian economic experts?
Noel Nkhoma’s argument is vague and crude empty. You don’t just oppose without putting the reasoning behind that argument in good shape.
All we are saying is that 5 million US dollars is too high in just three years to spent on something which our well known economists are capable of doing.
We shouldn’t accept failure before we see the results.
PF government has failed us.
Noel is a local economist who has made his mark here in Zambia. He is not an economic refugee in a foreign land living as a second class citizen. He has used reason and professionalism instead of emotion and partisanism. Well put, Mr. Nkhoma.
Yes he is too local and scared to handle an international task for the country. That’s why he supports the engagement of a foreigner to do the work that he was sent to school for. shame on him…
Check the so called patriotic “well meaning” pf cadres love for Zambians.
K10 billion ( roughly 500 to 600 thousand dollars covid stimulus package for Zambian businesses.
K500, 000,000 (roughly 30 thousand dollars) towards dismantling pension arrears ( drop in a ocean)
Debt management (foreign firm) 5 million US dollars.
Google sovereign debt resolution mechanism and then u will understand.
Ask yourself, whn and why is a debt advisor appointed. Answer is the same as why a receiver is appointed for a company limited by shares. Hope this throws some light.
It’s not just a matter of augment but what do experts say!!! Debt management is not a simple thing!!
No wonder our economy is in shambles because of this kind of economists who can’t call a spade to be a spade-shame.
These things are taught in international business and international finance at postgraduate level. Managers of multinational companies are expected to know because their company could be an exporter and could find itself being owed by a sovereign debtor which finds itself in a financial mess. You cannot appoint a receiver for a country the way u can appoint a receiver for a company limited by shares that is failing to pay u. Hence the sovereign debt resolution mechanism. You can’t throw out a governing party from govt even if its mismanagement has led to u not being paid.
The most wanted Zambia’s liability is Alexander Chikwanda, who was advising the presidents to borrow excessively.
PF must go!
Noel Nkhoma is not an Economist. He is in Public Relations and journalism. He is like chibamba Kanyama. Noel was PA to Rajan Matani. What economics ?
“A fool and his money are soon parted.” Case in point: PF thieves and their debt advice contract
I CANT BELIEVE SOME EXPERT ADVICE.
REALLY…
ITS NOW CLEARER NOW WHY ZAMBIA NOW FINDS HERSELF NOW IN THE SITUATION SHE IS IN NOW.
NOW NOW NOW ZAMBIANS, NOW WHATS THE WAY FORWARD NOW?
Noel makes a lot sense because he’s a practicing economist. I’d rather listen to him and not the buffoon Hichilema and these other nincompoops. HH worked for Coopers for 4 yrs and Grant Thornton for 8 yrs and both firms have never undertaken any assignment of that magnitude. His CV only qualifies him to hired by Economic Hit Men like Anglo or Brenthurst who’re his paymasters. He’s only good at stealing and hiding money offshore. Let him prove when he undertook such an assignment apart from cutting deals during privatization. He can only take advantage of gullible Zambians. Anyway, in Zambia even a meaningless song and childish dances can get you into State House. If we say we’ll deal with Edgar next year we don’t mean that we’ll elect the Mwene Mutapa and his tribal Party
Look at this alarming level of dullness, what has HH got to do with Noels observation. I always say the dullness in Zambia is rising in perpendicular to inflation. Where does HH coming in. What dullness is this, and can it be cured, maybe surgery can do. Cowards like this guy called Ayatollah need to be put behind the desk if teachable
I don’t support the idea of making such a huge payment especially after rubbishing free advice before finding ourselves into this situation. Where are the people that said we are in a better position to borrow more? These are the people we need to put to task for failing us. Again i hate this issue of just complaining and not act. There are many Zambians that have money but have failed just to approach the Ministry of Mines to show interest in the Gold mining but when they give foreigners we complain. Let us learn to act and not just talk. It is like people with the money have no brains and those with brains have no money. Let us learn to work together and stop the mentality of Pull Him Down
Isnt the problem that we are in this mess because of the caliber of our economists in Zambia, the fact that we have had no Zambian entity to undertake such an assignment cannot be a convincing reason to get a foreign entity, it does NOT make sense, we must start from somewhere. And for the rest of Zambians, please note that economics is just common sense and an impression should not be created that economists are experts – very far from it. Learn
A man must hold his manh00d for urine to have direction!
As long as Zambia continues relying on foreigners to shape the destiny of this country, we’ll continue spinning and theorizing in confusion like a Chicken that has lost it’s head!
The only advice to Mr Noel Nkoma is to learn to accommodate divergent views. You have not even told us why you think Lizard is the best pick from those that tendered! There is always a better way to do things than you may think! Locally generated solutions are the most sustainable overall!
NKOMA has not stated why the others were not picked, can government outline the criteria on how Lizard from France got picked? Was lizard the highest or lowest bidder, is there any reference to past work done by all bidders to show how successful they have been at such undertakings in the past? What made lizard very desirable, was this job advertised, where and when? When these are answered I can now proceed to give my opinion.
Noel Nkhoma has not advanced any compelling reason, there is nothing that he has highlighted that is compelling to get a foreign entity, the problem with our so called economists is that they don’t believe in themselves. And there is no in depth understanding of issues, I listen to most of our economists and frankly they leave a lot to be desired, this is not malicious at all
it’s important to understand that the debt was acquired from the capital markets. Capital markets have own procedures and practices. Transactions are done through registered intermediaries (eg stockbrokers, financial advisers, etc). Sovereign debt restructuring of such debts can only be done thru a registered advisor. From this view, Noel is right.
@ Cyclopes, tell these buffoons that are insulting us from an ignorant point of view. Hichilema is on twitter and other buffoons are saying they can undertake such an assignment. It’s like you commit a felony, you hire a lawyer to represent you then Hichilema, Kambwili and all jackals say they’re ready to offer you legal services pro bono when they don’t even have a practicing license and have never been to ZIALE. This is the level of thinking in Zambia. We’ve even Constitutional Experts who’re given titles by social media or News Diggers. When they’re seized by the balls they begin to squeal that they were misquoted. When you don’t a thing just keep quiet
This guy is not an Economist, he is an Zikomomist. And he is thinking exactly that way, a Zikomomist!
@Ayatollah stop trolling BALLY.
@Aristotle, your Bally is a fraud, he isn’t what he claims and he isn’t the alternative to Edgar so don’t waste time on Bally this and Bally that. We speak the truth, and unfortunately the truth hurts some circles.
Seer1, what did you do to Zambia?
It’s citizens are Failing to reason together! The leaders you chose for Zambians Mr Seer1 are only there to serve foreign interests and not the citizens. Seer1, whatever you did to this beautiful country, it’s a terrible thing!
This is what foreign prophets can do. They create Strongholds on nations. It’s dangerous to entertain False Prophets! See your life now you Zambians who support things blindly!
Eh… when did Noel become an economist? In Zambia, we have too many pretenders. It’s like “Play for Today” or “Play Circle”.
Please provide a sound counter argument or sit down, sir.
Yes Zambia is in deep trouble.
52 years after independence and you still can not even negotiate a loan rescheduling
In situations like this , as part that 5 million price tag , GRZ should insist on training up at least 5 GRZ economists for the period of the work schedule, by the same company in the art of international debt rescheduling.
What would it profit Zambians if we pay ‘costly overated muzungus’ and still continue reckless borrowing? People don’t be lazy in thinking. It’s open secret that we have serious fiscal discipline and intergrity deficit in this PF government