WRONG VIEW: BALLY’s DEBT RESTRUCTURING PUSHES DEBT TO FUTURE GENERATIONS
I think I will start an economics literacy class to help our nation understand basics. The debt problem was not created by Bally. It’s them who borrowed unsustainably and failed to repay. They are the creators of the problem for future generations. Bally has not pushed debt repayment to future generations. Debt restructuring is not the postponement of a problem. It is the management of a problem.
The question is not whether Zambia should repay its debts. Of course it should. The question is whether a nation emerging from default should divert every available dollar to creditors or whether it should simultaneously rebuild the economy that generates the capacity to repay.
Had Zambia used scarce foreign exchange reserves to aggressively pay down debt immediately, we would have weakened the kwacha, constrained imports, discouraged investment, reduced fiscal space for social services, and slowed economic recovery. That would have made debt repayment harder, not easier. Remember that the economy was growing at -2% by 2021. Our nation was embarrassingly a basket case.
Take note that debt restructuring is based on a simple principle, that is, a country cannot sustainably pay yesterday’s debts if it destroys tomorrow’s economy in the process.
The evidence is visible. In 4 years 9 months Zambia has moved from approximately US$1.5 billion in reserves to over US$6.5 billion. GDP growth has moved from -2% to a currently projected 6.5% for mid 2026/27. Investor confidence has improved. Debt service obligations have become more manageable. Economic growth has resumed. These are not signs of avoiding responsibility. They are actually signs of restoring capacity.
The real burden on future generations would not have been restructuring. The real burden would have been insisting on immediate repayment while starving the economy of the liquidity and stability required for growth.
A family that has suffered financial distress does not empty its savings account to satisfy every creditor at once. It restructures obligations, rebuilds income, restores stability, and then repays from a position of strength. Nations operate on the same principle.
The objective of restructuring was never to avoid repayment. It was to ensure repayment without sacrificing Zambia’s recovery. Our economy has finally recovered as evidenced by GDP growth, which must be translated into household income recovery.
Zambia FORWARD! Backwards NEVER!
Saviour Chishimba
President
United Progressive People (UPP) and UPND Alliance Partners