By Patricia Male, Tinkerbel Mwila and Leah Ngoma
Various stakeholders have welcomed the decision by the International Monetary Fund –IMF- to approval the $1.3 billion bailout package for Zambia.
New Hope MMD President Nevers Mumba says the approval of the $1.3 billion IMF deal to Zambia is a mark of respect and confidence from the international community that the programs that government has put in place are workable.
In congratulating President Hakainde Hichilema and his economic team for this great milestone in restoring confidence in the economy, Dr. Mumba is confident that this approval will lead to a period of an economic boom that will be felt by all Zambians.
Dr. Mumba says this approval also means that Zambia’s debt is now on a path to being restructured, that the country now has more money to spend on social services such as education and health, interest rates and exchange rates are expected to continue improving and that there will be increased foreign direct investment resulting from increased investor confidence.
Meanwhile, Zambia Association of Citizen Contractor General Secretary Danny Simumba is optimistic that the approved US$1.3 billion IMF package will enable government to clear the outstanding debt owed to local contractors in the construction sector.
Mr. Simumba is of the view that the funds will unlock the potential of Zambian contractors by providing them with opportunities to participate in the construction industry.
And ActionAid Zambia is calling on government to reject any IMF conditions or policy steers that will contradict its recent commitments to increase spending on education and health, and recruit more frontline public sector workers.
Organization Country Director Nalucha Ziba is hopeful that president Hichilema and his government have been strong enough to reject stringent measures that may affect social sector spending from the IMF adding that the lack of transparency in these negotiations has been a serious concern for many stakeholders.
The Executive Board of the IMF has approved a three-year arrangement under the extended credit facility for Zambia in an amount equivalent to around US$1.3 billion.
PHOENIX NEWS