Elephants terrorise villagers in Sesheke’s Kolongola area
Rights Activist Brebner Changala Accuses President HH of Lying to win 2021 Election
In a startling revelation, renowned Zambian civil and human rights activist, Brebner Changala, has made damning allegations against President Hakainde Hichilema, accusing him of deceiving the Zambian people to secure victory in the 2021 election. Changala argues that instead of relying on the character of individuals, Zambians should focus on strengthening institutions through better laws to serve the nation’s interests.
“Mr. Hichilema knelt down and begged for a vote from Zambians, telling them he would be a better leader, but it was all lies looking at what is happening,” expressed Changala, highlighting his disappointment in the President’s actions since assuming office. This revelation comes as a surprise, considering Changala’s prior support for Mr. Hichilema during the election campaign.
Furthermore, Changala describes President Hichilema as a “loose cannon” who displays a propensity to suppress any form of criticism. He draws attention to the blame game played during the previous administration, where opposition leaders, including Hichilema, were often arrested, with President Edgar Lungu taking responsibility. Changala cautions that under President Hichilema’s leadership, the responsibility lies squarely on the President himself if individuals are wrongfully detained or abducted.
Emmanuel Mwamba, former Ambassador to the African Union (AU) and Ethiopia, joined the program and shared his own harrowing experience of arrest and brutalization by plainclothes individuals claiming to be police officers. Mwamba emphasized that his personal ordeal pales in comparison to the extensive catalogue of human rights abuses and arbitrary arrests documented in a recent report by the Department of State in Washington, covering the period from 2022 to the present under President Hichilema’s rule.
Mwamba further expressed frustration that accusations of forgery against him remain unsubstantiated, preventing his case from being brought to court. He vehemently denies the allegations, asserting that they were fabricated to tarnish his reputation as a result of his dissenting views on national issues.
Both Mwamba and Changala highlight the similar treatment experienced by other politically inclined individuals who have been subjected to harassment and arbitrary arrests, despite President Hichilema’s campaign promise to end such practices.
The program, hosted by Pastor Moses Chiluba, is available for viewing on YouTube and Camnet TV channel, providing a platform for the public to gain further insights into the discussion.
Mwamba challenges fellow civil society members to follow Changala’s lead and speak out against injustices, while Changala questions the apparent silence of the Human Rights Commission under President Hichilema, contrasting its vocal stance during President Lungu’s tenure.
Expressing his dismay, Mwamba recounts an incident where Commissioner Laura Miti openly mocked and laughed at him following his brutal arrest, despite the authenticity of his injuries confirmed by a government medical doctor.
Furthermore, Mwamba expresses surprise at the endorsement of “minimum force” against him by both the Inspector General of Police and the Minister of Home Affairs, Jack Mwiimbu. He points out that the Law Association of Zambia has deemed the use of minimum force unconstitutional and illegal in the country.
In response to the brutality he endured, Mwamba, through his legal representatives, Makebi Zulu and Corp, has filed complaints with the Human Rights Commission, Amnesty International, the United Nations Human Rights Agency, and the Zambia Police Complaints Board, seeking both damages and an apology for the physical and public humiliation he endured.
These revelations by prominent figures raise important questions about the state of human rights and the rule of law in Zambia. As the allegations continue to unfold, it is essential to closely monitor the actions taken by the relevant authorities and the response from civil society organizations to ensure transparency, accountability, and justice for all individuals affected.
Empowering Zambia: Breaking the Chains of Debt and Pursuing Self-Sufficiency
Empowering Zambia: Moving Beyond Debt and Embracing Homegrown Economic Development; By Cosmas Chilando
The current state of Zambia’s economy demands a critical assessment of its strategies and a paradigm shift towards self-reliance. While the celebration of a $188 million debt contract with the IMF might seem like progress, it raises concerns given Zambia’s abundant resources, including the lucrative Kagem Emerald mine and Sugilite mine. This article aims to provide guidance to the Zambian government on breaking free from external dependence, maximizing its potential, and establishing a sustainable homegrown economic development model.
- Embracing Resource Utilization: Zambia possesses rich natural resources, particularly in emerald and sugilite mining. To stimulate economic growth, the government should prioritize the development of these industries, harness their full potential, and capitalize on their market value to generate revenue.
- Exploring Agriculture for Medical Cannabis: Zambia’s fertile agricultural land presents an untapped opportunity for cultivating medical cannabis. Despite international conventions on narcotic drugs, advocating for reforms and exploring the medicinal cannabis industry can create a new income stream and potentially offset debts.
- Redefining Economic Independence: Zambia must challenge the narrative of reliance on external partners for economic aid. By fostering innovation and supporting local industries, the government can promote economic independence and reduce dependence on external assistance. Nurturing local entrepreneurs and businesses will build a resilient economy capable of standing on its own.
- Developing a Homegrown Economic Model: Zambia’s path to prosperity lies in crafting a unique and robust homegrown economic development model tailored to its specific needs and resources. By investing in research and policy development, the government can formulate strategies that maximize domestic potential, attract foreign investment, and drive sustainable growth.
- Prioritizing Food Security: Ensuring food security is crucial for economic stability. The government should prioritize agricultural development to guarantee sufficient and affordable food for its citizens. Empowering local farmers and investing in agribusinesses will not only boost the economy but also enhance the overall well-being of the population.
Conclusion: Zambia stands at a critical juncture where it must shift its focus from celebrating nominal debt contracts to harnessing its wealth of natural resources and agricultural potential. By breaking free from external dependence and adopting a homegrown economic development model, Zambia can forge a path towards a prosperous and self-sustaining future. The government’s commitment to these initiatives will determine its success in empowering its citizens and transforming the nation into a beacon of economic growth and stability.
Atlas Mara /Access Bank Merger Won’t Affect Zesco United Sponsorship
Atlas Mara Bank acting Managing Director Bobbline Cheembela says the merger with Access Bank won’t affect the sponsorship of FAZ Super Division giants Zesco United.
Cheembela said even under Access Bank the Zesco United sponsorship would continue.
Speaking at the Zesco United Awards Gala night in Ndola, Cheembela announced that Atlas Mara Bank has since extended the club sponsorship by one year.
“As you may be aware, Atlas Mara is currently working on a merger with Access Bank and once the merger process is complete later this year the merged bank will be rebranded as Access Bank Zambia Limited,” Cheembela said.
“As part of the integration process, there is agreement that in order to create a much stronger merged bank, all the good things on the Atlas Mara side and on the Access Bank side will be adopted and I can assure you that the partnership with ZESCO United FC has been deemed as one of those good things that we would love to continue with,” he said.
Atlas Mara Bank has been sponsoring Zesco since 2016.
Mufulira Mayor Hails Mighty’s FAZ Super League Promotion
Mufulira Mayor Tanaeli Kamanga has hailed the recent promotion of Mighty Mufulira Wanderers back to the FAZ Super Division.
Kamanga said Mufulira Council was delighted by the promotion of Wanderers to the top league.
“The promotion of Mighty Mufulira Wanderers is something that has been welcomed by everyone in Mufulira,” Kamanga said.
He said Mighty’s promotion will bring economic gain to Mufulira Town as big teams come to play league matches.
Speaking to Radio Icengelo Sports in Mufulira, Kamanga called for more support for Wanderers.
“We are delighted. There is all joy when it comes to sport.We are going to support the team.”
He added:”With Mufulira Wanderers coming to back to the Super Division even the economy of the city will change.
“We want to see Mighty bring back that lost glory,” Kamanga concluded.
Wanderers have won the Super Division title nine times.
Sichone Names COSAFA Cup Team
Chipolopolo deputy coach Moses Sichone has named a 23-member final squad for the 2023 COSAFA Cup being staged in South Africa.
Sichone will lead defending champions Zambia at the 26th edition of the regional championship.
Some notables in the squad are goalkeeper Lawrence Mulenga, striker Harry Millanzi Junior, Aaron Katebe, Benedict Chepeshi, Kelvin Kapumbu, Kelvin, Kampamba and Fredrick Mulambia.
Zambia is in Group B and will play the first match on July 6 against the Flames of Malawi before facing Comoros three days later.
The final group match will be against Seychelles on July 11 at the Princess Stadium.
The full Team
Goalkeepers: Lawrence Mulenga (Power Dynamos), Victor Chabu (Nchanga Rangers) and Francis Mwansa (Trident).
Defenders: Benedict Chepeshi (Red Arrows), Aaron Katebe (Power Dynamos), Pride Mwansa (Nkwazi), Killian Kanguluma (Kabwe Warriors) Mathews chabala (Nchanga), John Chishimba and Samson Mkandawire (both Zesco).
Midfielders: Kelvin Kapumbu, Kelvin Mubanga Kampamba (both Zesco) Joshua Mutale, Fredrick Mulambia ( both Power), Oliver Lumbiya (Nkana), John Kosamu, Harry Milanzi Jnr (both Buffaloes), Abraham Siankombo (Zanaco) and Patson Kwaitane (Mufurila Wanderers).
Forwards: Albert Kangwanda (Arrows) , Andrew Phiri (MUZA) and Moyela Libamba (Forest Rangers).
Foiled Robbery,Police Arrest Six Suspects, Launch Manhunt for Nine Others
In a daring incident that unfolded in the early hours of July 4, 2023, police in Lusaka successfully apprehended six out of the 15 suspected criminals involved in a robbery at Kingsland City, located in the Ibex Hill area. The audacious thieves, armed with machetes and other offensive weapons, targeted scaffolds and armored cables, causing panic and chaos among the residents.
According to reports, the security guards on duty at the premises noticed the suspicious activity and swiftly alerted the Ibex Police Station before bravely confronting the criminals. However, the odds quickly turned against the guards as they were overpowered by the determined assailants. The criminals resorted to tying up the security guards and inflicting injuries on their hands using sharp instruments.
Law enforcement officers promptly arrived at the scene and engaged in a high-stakes pursuit of the fleeing suspects. Their efforts bore fruit as they managed to capture six of the perpetrators and successfully recovered stolen goods worth an estimated K88,000. Additionally, a Mitsubishi Canter, bearing registration number ABD 5153 and used to transport the stolen property, was impounded.
The injured security guards were rushed to the hospital for immediate medical attention, where they are currently receiving treatment for their injuries. Authorities remain vigilant in their pursuit of justice and have launched a wide-scale manhunt for the remaining nine suspects who are still at large.
Danny Mwale, the Deputy Police Public Relations Officer, provided an update on the situation, stating, “We are determined to bring all the culprits involved in this heinous act to justice. The swift response by our officers led to the successful apprehension of six suspects, and we are actively pursuing leads to track down the others. We assure the public that we will not rest until all those responsible are brought to book.”
The incident has sent shockwaves throughout the community, emphasizing the need for enhanced security measures and vigilance among residents. The police investigation into the case is ongoing, and authorities are urging anyone with information related to the crime or the whereabouts of the remaining suspects to come forward and assist with the investigation.
The foiled robbery in Ibex Hill serves as a stark reminder of the persistent threat posed by criminal elements and the commendable efforts of law enforcement in safeguarding the community. As investigations continue and the manhunt intensifies, residents are urged to remain vigilant and cooperate with the police to ensure the swift resolution of this disturbing incident.
This incident once again highlights the dedication and bravery of the police force in combating crime and protecting the well-being of citizens. The Lusaka community can take solace in the fact that the authorities are resolute in their pursuit of justice, sending a strong message that criminal activities will not be tolerated.
As the investigation unfolds, the public eagerly awaits further developments and remains hopeful that all perpetrators will be apprehended swiftly, ensuring that justice is served for the victims and the community at large.
Government Clarifies Position on Allegations Regarding Former President’s Family
Government wishes to categorically deny allegations by members of the family of the former President Edgar Chagwa Lungu that it has played a part in influencing the alleged demonisation, on various media platforms, of some members of that family who are presumed to own properties suspected to be proceeds of crime.
It is important to emphasise that Government’s intention is not to demonise any individual or family, let alone, members of the family of the former President but rather to ensure transparency, accountability, and adherence to the rule of law.
Further, it is imperative to note that the dissemination of information through news items published in tabloids and social media platforms as well as broadcast on various radio and television stations is beyond the control of the Government.
We want to emphasise that Government does not control the content or editorial decisions of media outlets. The responsibility for news coverage lies with the media organisations themselves. The Government neither influences nor endorses the demonisation or sensationalisation of stories involving individuals, including the former President or his family members.
In cases where the Government is directly involved in providing information to the media, we strive to ensure transparency, accuracy, and fairness. Our intention has always been to present information in a manner that upholds the principles of justice and respect for all involved.
Furthermore, we understand the concerns expressed by the Lungu family about the alleged negative portrayal of their father in the media. However, it is crucial to remember that media organisations operate independently, and their editorial choices are beyond the control of the Government.
We do not condone the sensationalisation or undue exposure of individuals involved in any investigations, as it can undermine the integrity of the legal process and cause unwarranted harm.
Our priority is to ensure a transparent, thorough, and fair investigation into matters related to property suspected to be proceeds of crime. Any actions taken by law enforcement agencies are guided by legal protocols and procedures, with the aim of upholding the principles of justice and due process.
In conclusion, Government affirms its commitment to upholding the rule of law and ensuring a fair and just process for all individuals. full pdf statement here Statement on the Lungu Family
(Original copy signed)
Hon. Makozo Chikote, MP
ACTING MINISTER OF INFORMATION AND MEDIA AND
CHIEF GOVERNMENT SPKESPERSON
Tasila cries as she accuses the state for persecution
“Our appeal to you all is to allow us to defend ourselves in court. The dramatization of our circumstances by the state in the daily tabloids has only worked to demonize our father who worked diligently to serve this country and willingly handed over power to the incumbent. We have had to spend considerable amount of time with our father and mother who, in all these difficult times, have opted to remain silent.” Hon Tasila Lungu.
Former President Edgar Lungu daughter Tasila Lungu breaks down as she accused the state of unjustified persecution while addressing the press.
Tasila Lungu, Chawama Member of Parliament, made a joint statement on behalf of her siblings today in which she stated that her family is being persecuted by the state through the media based on unfounded statements.
Her siblings, Agness, Chiyeso, Willie, and Geoffrey Banda, were present at the briefing to make a written statement but requested the media not to ask any further questions.
Ms Lungu disclosed that the law enforcement officers have constantly been ordering her family to appear before them to answer to charges.
She said the family has endeavored to lead a quiet life after their father left office in August 2021 but the law enforcement officers are not giving them peace.
“.We must hasten to say that we are not objectionable to the Law Enforcement Agencies making inquiries into any matter and we have constantly and consistently complied with the Law Enforcement Agencies. Despite our compliance, it seems to us that it has become fashionable to demonise the Lungu family based on unfounded allegations,” she said.
Ms Lungu claim that the state has not made it any easier for the family, as it seem to play to the gallery in their matters.
She further noted that the family has been learning of lawsuits in the media.
“Ordinarily, we would expect to be the first to know as relates to matters involving any member of our family. However, we have learnt of the recent lawsuits through news items published in tabloids and various social media platforms. We proceeded to engage our lawyers to obtain the necessary documents from the state, which attempt was met with difficulties,” she said.
Ms Lungu said the family has obtained the necessary documents and will proceed to respond appropriately in court.
She expressed concern over the dramatisation of circumstances by the state in the daily tabloids has only worked to demonise their father who worked diligently to serve the country and willingly handed over power to the incumbent.
“Our father’s resolve is that we allow the law to take its course, and we agree with that position. Whereas some may call our father different names, he remains a caring father to us and a loving husband to our mother. We wish to thank all that have reached out and empathized with us. Your encouragement has kept us going,” she said.
Sugilite Minerals Seized: 3 Arrested in Mansa District for Unlawful Possession and Trespass”
Three individuals have recently been apprehended in the Mansa District of Luapula Province on charges of unlawful possession of suspected Sugilite mineral ore and criminal trespass. The suspects, namely Nelson Kalembwe, 43 years old, from Nchelenge District; Zebedi Lukwesa, 39 years old, from Chilanga in Lusaka; and Morton Sikazwe, 31 years old, from Mansa District, were discovered in possession of the alleged mineral ore at a lodge in Mansa District on July 3, 2023. The arrest was made following a tip-off provided by a concerned member of the public.
Additionally, it is alleged that the trio trespassed on the premises of Katros Mine Limited, where they engaged in blasting activities and collected a quantity of minerals suspected to be Sugilite at around 20:00 hours on July 2, 2023.
To determine the nature of the suspected mineral ore, it has been handed over to the Ministry of Mines for further examination and laboratory testing.
At present, all three suspects remain in police custody as they await formal charges to be brought against them.
Sugilite, the mineral in question, is a rare and valuable gemstone known for its vibrant purple coloration. It is primarily composed of potassium, sodium, lithium, iron, and manganese, and is often found in association with other minerals like quartz and black manganese oxides. Due to its scarcity and striking appearance, Sugilite has gained popularity in the jewelry industry.
Beyond its aesthetic appeal, Sugilite has also been associated with various metaphysical properties and healing benefits. It is believed to promote spiritual growth, enhance psychic abilities, and bring about emotional balance and protection. Some individuals use Sugilite for meditation, as it is thought to aid in accessing higher states of consciousness.
Given its rarity and demand, Sugilite holds significant commercial value, particularly in the gemstone market. However, any mining or possession of the mineral must adhere to legal regulations and obtain the necessary permits to ensure responsible and sustainable practices.
The investigation into the alleged possession of Sugilite mineral ore by the three suspects continues, and the authorities are committed to upholding the law and safeguarding the country’s mineral resources.
For further information, please contact: Danny Mwale Deputy Police Public Relations Officer
President Biden Stresses Strong US-Zambia Relations
“President Biden Stresses Strong US-Zambia Relations and Commitment to Democracy, Pledges Collaboration on Shared Objectives”
President Biden Emphasizes Strong US-Zambia Relations and Commitment to Democracy
In a significant declaration, President Joseph Biden highlights the enduring friendship and strengthened ties between the United States and Zambia. The President expresses enthusiasm for deepening partnerships in Zambia, across Africa, and globally, underscoring the shared commitment to democracy and its responsibilities.
President Biden Affirms Commitment to Democracy and Collaboration with Zambia
President Biden reiterates the unbreakable bond between the United States and Zambia, firmly grounded in their shared commitment to the centrality of democracy and its associated responsibilities. He acknowledges the necessity for continuous reflection and self-improvement to protect this cherished tradition, emphasizing the importance of meeting the aspirations of the younger generation for an accountable, responsive, and just administration.
Collaboration on Shared Objectives, Strengthening Governance, and Ensuring Peace and Security
President Biden looks forward to collaborative efforts with Zambia, aiming to enhance governance, promote regional peace and security, and address crucial issues such as food and energy security. He applauds Zambia’s reform efforts and welcomes opportunities to deepen bilateral and multilateral cooperation. President Biden emphasizes the significance of joint initiatives to achieve shared objectives and overcome common challenges.
Zambia Appreciates US Assistance in Agriculture, Economic Growth, and Health
Mr. Kanyama, representing President Hakainde Hichilema, expresses Zambia’s deep appreciation for the valuable assistance provided by the U.S. Government through programs like USAID and PEPFAR. Over the past two decades, nearly six billion U.S. dollars have been committed to Zambia, greatly impacting healthcare improvements. Notably, last year marked the 20th anniversary of PEPFAR’s support in combating the global HIV pandemic. Through collaboration with the Zambian government and other stakeholders, Zambia has exceeded UNAIDS HIV targets in treatment and viral suppression.
Benefits from the Millennium Challenge Corporation’s Work in Lusaka
Zambia’s government and people express gratitude for the benefits derived from the Millennium Challenge Corporation’s initiatives in Lusaka. Initially focused on business reforms and improving water supply and sanitation, the MCC’s support will now be directed towards infrastructure development, policy reforms, and agri-business advancements. This strategic focus aims to further stimulate Zambia’s growth and progress. below a full Press Statement
Construction works on Mpululungu rural health posts impressive – Mbao
Northern Province Minister Leonard Mbao has expressed happiness with the works done on the construction and rehabilitation of rural health posts in Mpulungu.
Mr Mbao who is also Mpulungu Member of Parliament said it is gratifying that the projects which are being implemented under the 2022 Constituency Development Fund (CDF) are progressing well.
Mr Mbao who visited some sites said the local contractors have also taken up the responsibility to work on the projects.
He observed that the implementation of fish ban on the lake has seen many people turning to doing other businesses such as making desks and constructions using the CDF.
Mr Mbao also thanked the Government for making it possible for the local authority to approve projects.
The Minister said this has helped the district to embark on more projects as projects are being approved quickly without delay.
He has since encouraged people to support the Government by ensuring that whenever they are offered a contract, they put in their best and deliver quality work.
Mr Mbao said this when he inspected the CDF projects in the area.
And Mpulungu District Health Director Fredrick Mwila thanked the local authority for helping to bring health services closer to people.
Dr Mwila disclosed that it has been difficult for the department to offer services to people especially in rural communities.
He said the completion of the facilities will therefore help to caution the challenges people face in accessing services.
He added that the rehabilitation of the Kasakalawe and the completion of the Sondwa rural health posts will help to offer quality health services closer to the public.
And Mpulungu Town Council acting Director of Works Diamond Ndonji said the council chose to work on the Sondwa rural health posts because of the large population of the people in the community.
He said the works on Kasakalawe and Sondwa rural health posts are nearing completion and the facilities will be handed over to the department of health soon.
Mr. Ndonji said major works have been done with only minor works such as finishing up the water reticulation system and sanitation facilities remaining.
Chembe Bird Sanctuary to become Zoo
Minister of Tourism Rodney Sikumba has announced government’s plans to turn Chembe Bird Sanctuary in Kalulushi District on the Copperbelt Province into a zoo.
Speaking when he graced the Zambia International Trade Fair Tourism Stakeholders’ Cocktail organized by the Zambia Tourism Agency, Mr Sikumba noted that his ministry will ensure that the Zoo will be stocked with different wildlife and species.
Mr Sikumba stated that the Zoo which will have wildlife animals like Lions, Zebras, Ostriches among others will be servicing not only the people in the Copper belt province but also beyond the borders.
He said having such kinds of tourism attractions in the country, will not only promote the tourism sector but also help generate income for the country.
“My ministry has a plan of turning the Chembe Bird Sanctuary here on the Copperbelt into a Zoo so that people can have a chance to view different animals and we will ensure that the Zoo will be fully stocked so that it cannot only attract the locals but also internationally,” Mr Sikumba stated.
Mr Sikumba stated that the government wants to empower the private sector by removing all bottlenecks that are hindering growth of sector players so that tourism can thrive and create employment opportunities for young people.
He said the debt restructuring deal that was sealed by the government will release more resources that will go into creating investment including infrastructure development in the tourism sector in addition to USD100 million that was granted by the World Bank to the sector.
Copperbelt Province Minister Elisha Matambo said the region has changed from what people used to know as a place of violence to a place of law and order adding that this means that the province is ready for fresh development and investment.
He said any investors wishing to come to the Copper belt are assured of their investment security.
“I just confirm that the face of the Copperbelt province has changed. It used to be known of violence but now there is law and order here. Even in terms of development, this place has developed a number of roads and now you can see that we are working on the Chingola – Chillilabombwe road which was in a deplorable state,” Mr Matambo stated.
Two die, five serious injured in Mwense fatal road accident – Police
Two people have died on the spot while five others have sustained serious injuries in Mwense District, Luapula Province, in a fatal road traffic accident which involved a truck they were aboard as passengers.
Luapula Division Police Commanding Officer Fwambo Siame disclosed that Mwense Police Station dealt with one fatal Road Traffic Accident which occurred on 2nd July 2023 around 20:40 hours at Mulundu village in chief Mulundu area about 18 kilometres south of Mwense Town.
Mr. Siame said involved was a Hino Ranger light truck Registration No. ASB 2255 driven by Titus Nkomanga aged 39 years of Mansa Broadcast compound and had carried 25 passengers on top of goods as they were in transit to conduct an open market called ‘Munada.’
“The accident happened when the driver lost control after hitting a road hump and then went off the road to the right side where he hit a shop pillar,” he said.
The Luapula Division Police Commanding Officer said because of the impact, two passengers sustained fatal injuries and died on the spot and have been identified as; Female Given Chishimba aged 41 years of Sumbu village in Mansa district and Dennis Chileshe aged 36 years of suburbs Compound, Mansa District.
Mr. Siame said all the injured are from Suburbs Compound in Mansa District and had multiple injuries and are admitted to Mambilima Hospital.
“The following five male passengers sustained serious injuries. These are; Isaac Chibwe aged 19 years, Emmanuel Kazembe aged 20 years, Joseph Kalembwe aged 32 years, Sanford Mudenda aged 24 years and Songwe Fackson aged 43 years,” he said.
Mr. Siame said the driver of the motor vehicle has since been arrested for causing death by dangerous driving and is detained in Police Custody as he awaits to appear before the court.
Charting a Path to Economic Resilience
Zambia’s Debt Restructuring and Strategic Economic Reforms
By Alexander Vomo
Zambia’s total debt is about $32.8 billion, including interest arrears at the end of last year, now we just got a $6.3 billion debt restructuring. If we take out $6.3 billion from the figure above, this means zambia later will still have to pay the remaining amount of about $26.5 billion dollars.
Debt restructuring refers to the process of altering the terms and conditions of a country’s debt obligations to make it more manageable and sustainable. In the case of our Government, if we owe $32.8 billion dollars and $6.3 billion is restructured, it means that a portion of the total debt (specifically $6.3 billion) is being renegotiated.
When debt is restructured, certain changes are typically made to the original debt agreement. These changes may include:
1. Lowering Interest Rates: The interest rate on the restructured debt may be reduced, making it more affordable for the country to service the debt.
2. Extending Repayment Period: The timeframe for repaying the restructured debt may be extended, providing the country with more time to make repayments and reducing the immediate financial burden.
3. Principal Write-Down: In some cases, a portion of the principal amount may be forgiven or reduced, effectively decreasing the total amount of debt owed.
4. Changing Payment Terms: The restructuring may involve altering the timing and frequency of debt payments to better align with the country’s cash flow and financial capacity.
By restructuring a portion of the debt, Zambia aims to address its debt burden and improve its financial position. It can provide the country with some relief from immediate financial pressures and create a more sustainable pathway for managing its overall debt obligations. However, it’s important to note that debt restructuring is just one part of the solution, and the country also needs to implement sound economic policies and reforms to ensure long-term financial stability and sustainable economic growth.
Reaching an agreement in principle to restructure $6.3 billion of debt with bilateral lenders can have significant implications for Zambia’s economy. Here are some potential effects:
1. Debt Relief and Improved Fiscal Position: Debt restructuring can provide immediate relief to the country’s debt burden. By adjusting the terms and conditions of the debt, such as lower interest rates or extended repayment periods, it can ease the financial strain on the government, freeing up resources for other essential expenditures like infrastructure development, social programs, and economic projects.
2. Enhanced Debt Sustainability: Restructuring the debt can help make it more manageable and sustainable in the long term. This can improve investor confidence and credit ratings, making it easier for Zambia to access financial markets in the future.
3. Boost to Investor Confidence: Reaching an agreement with bilateral lenders signals a willingness to address the debt issue, which can boost investor confidence in Zambia’s economic prospects. Increased investor confidence may attract foreign direct investments and stimulate economic growth.
4. Strengthened Economic Recovery: Debt restructuring can play a role in supporting economic recovery efforts. With reduced debt obligations, the government can focus on implementing measures to promote economic diversification, infrastructure development, and job creation.
5. Positive Impact on Exchange Rates: Successful debt restructuring can lead to improved economic conditions, which may positively affect Zambia’s currency value. A stronger currency can lower import costs and help manage inflation.
6. Rebuilding International Relationships: Resolving the debt restructuring with bilateral lenders can strengthen Zambia’s relationship with international partners. Positive interactions with lenders can pave the way for future cooperation and assistance.
7. Long-Term Challenges Remain: While debt restructuring is a step in the right direction, it’s essential to recognize that it’s not a complete solution to all of Zambia’s economic challenges. The country will need to continue implementing sound economic policies, address governance issues, and diversify its economy to achieve sustainable growth and development.
It’s important to note that the actual impact of the debt restructuring on Zambia’s economy will depend on the specific terms of the agreement, as well as how effectively the government manages its financial resources and implements accompanying economic policies.
I would like to mention also, the following economic advice that could be beneficial given the country’s total public debt stock:
1. Sustainable Debt Management: Focus on prudent debt management practices to ensure that the debt burden remains sustainable in the long term. This involves carefully assessing borrowing needs, avoiding excessive reliance on external debt, and implementing strategies to manage debt repayments effectively.
2. Fiscal Discipline and Transparency: Implement rigorous fiscal discipline to control government spending and reduce budget deficits. Transparent financial reporting and accountability are essential to build trust with creditors and investors.
3. Economic Diversification: Prioritize efforts to diversify the economy away from heavy reliance on a single sector, such as mining. Promote growth in other industries like agriculture, manufacturing, tourism, and services to create a more resilient and balanced economy.
4. Attracting Investment: Create an attractive investment environment to encourage both domestic and foreign investments. Streamline regulations, improve infrastructure, and address governance issues to build investor confidence.
5. Revenue Generation: Explore opportunities to increase domestic revenue generation through broadening the tax base, improving tax collection mechanisms, and reducing tax evasion.
6. Public Investment Management: Prioritize public investments in projects that have a high return on investment, contribute to sustainable development, and create jobs.
7. External Debt Reassessment: Continue monitoring the external debt situation, and only undertake additional borrowing if the projects have a clear and tangible economic benefit. Avoid further accumulating unsustainable levels of debt.
8. Focus on Economic Growth and Social Development: Adopt policies and initiatives that promote inclusive economic growth and address social challenges. Investing in human capital, healthcare, and education can create a more productive and skilled workforce.
9. Strengthening Institutions: Enhance governance structures, fight corruption, and strengthen institutions to promote transparency, accountability, and good governance.
10. Engaging with International Partners: Maintain open communication with international lenders and partners to ensure a collaborative approach in managing the debt situation and securing support for economic reforms.
By following these pieces of advice, Zambia can work towards achieving sustainable debt levels, fostering economic growth, and improving the overall well-being of its citizens. Thank you. One Zambia, One Nation.