*UKA assures citizens of pro poor policies and investors a stable economy once voted into office in the 2026 elections and beyond.*
*LUSAKA, November 07, 2024*-The United Kwacha Alliance-UKA bemoans the delay in debt restructuring and technical challenges facing the UPND in unlocking the economy and easing citizens’ economic burdens.
We stand firm and assure all stakeholders and the Zambian people that once elected into office, UKA will prioritise revenue generation from local resources, expedite the implementation of pro-poor policies to address the urgent economic challenges affecting the poor and create a stable economic environment for investors.
UKA will create an open house platform to provide clarity on debt restructuring timelines and processes and effectively engage civil society organizations and stakeholders to ensure citizens’ participation in meaningful economic reforms to stimulate growth, economic recovery, and avoid debt dependence and defaults.
UKA acknowledges Zambia’s successful restructuring of $US3 billion of its international bonds with key creditors, marking a crucial milestone in its debt restructuring process as this agreement will provide $US2.5 billion in cash-flow relief during Zambia’s $1.3 billion International Monetary Fund Extended Credit Facility (ECF) that expires in 2025.
However, it’s important to realize that Zambia’s debt restructuring journey has faced many challenges despite this progress.
We have noted that the UPND government has failed to finalize a comprehensive debt restructuring plan for the whole $14.5 billion external debt. This alone has created serious setbacks on economic growth thereby affecting the general population, especially the increase in prices of basic commodities like food and the prolonged load shedding affecting many businesses.
In addition to this gloomy outlook, our colleagues in the UPND led Government have also failed to reach an agreement with all creditors, including Chinese lenders and private bondholders, which has led to the delay in securing the approval for the IMF ECF due to debt sustainability concerns.
Between August 2021 and January 2024, the Government signed external loans amounting to US$2.9 billion, this includes US$1.3 billion from the –MF Extended Credit Facility and US$1.58 billion from the World Bank.
It is now abundantly clear that the UPND has not launched any robust debt management and investment strategies to prevent future debt accumulation as they are more focused on borrowing which may result in failing to pay back the debt in the future.
Overall, to grow the economy, UKA will promote and carry out key economic reforms and develop sustainable policies to grow the economy and satisfy the G20 framework in strategic prioritized economic areas like:
1. Mining and economic diversification
2. Programs in Agriculture with mechanization
3. Promotion of Manufacturing
4. New industries and new industrial parks in every province
5. Construction of 2 new cities and progressive dismantling of shanty compounds as part of Infrastructure development
6. Tourism and wildlife conservation
7. Promotion of creative industries to absorb the high unemployment levels.
To move forward with development, UKA will among other key priorities enhance transparency and accountability in debt contracting and management by rooting out corruption and mismanagement of public funds, strengthening institutions to tighten up the financial laws and systems to ensure accountability among all key players and stakeholders.
*UKA-The peoples movement*
*Silavwe Jackson*
*Chairperson Commmuications*
*United Kwacha Alliance-UKA*