UNDER-SUBSCRIPTION OF GOVT BONDS ATTRIBUTED TO LOW INVESTOR CONFIDENCE DRIVEN BY ECONOMIC UNCERTAINTY
By Lukundo Nankamba
Economist Ikabongo Mwiya has attributed the under-subscription of government bonds in the fourth quarter of 2023 to low investor confidence in the country which is driven by economic uncertainty.
In an interview with Phoenix News, Mr. Mwiya says the 19 percent decline of government bonds as revealed by the Central Bank recently raises questions about anticipated returns on investment which could negatively impact the funding of government operations.
Mr. Mwiya says under-subscription of government securities is also partially attributable to reduced participation from banks, which are increasingly skeptical about the viability of such investments.
He is of the view that the evolving market conditions creates uncertainty for investors, potentially leading to significant consequences for the economy.
Further, Mr. Mwiya says addressing these challenges will require concerted efforts from both government and financial institutions to create a more stable and conducive investment environment.
PHOENIX NEWS