ZAMBIA’S DEBT… WHAT NEXT?
1. Signing of the MOU with the Official Creditors.
2. Signing of agreements with creditors on a bilateral basis to give the MOU legal effect.
3. Continued engagement with bond holders with a view of reaching an agreement for US$ 6.8 billion due to that group based on the principles agreed with the official creditors.
4. PAYING DEBTS DUE BASED ON AGREEMENTS SIGNED
SOME FOOD FOR THOUGHT??
1. Delivering significant improvement in economic performance which translates into an improved quality of life for citizens is crucial;
2. How will cashflow relief be utilised? It must go towards stimulating the economy… support the vulnerable… Priority investment… The country must spend/ invest wisely in order to improve the country’s capacity to, among other things, pay the debts.
3. Zambia needs to work on improving economic resilience. What do I mean? How do we protect the economy from shocks such as the pandemic which can derail a lot of the progress made? It’s time to actualise diversification.
4. The country needs to understand and document the lessons from the past and ensure we do not end up here again.
5. Institutions need to be strengthened so that commitments made can be sustained irrespective of who is in government.
6. Citizens need to take a very keen interest in the financial affairs of the country.
7. When will Zambia’s Credit rating improve? When will the government’s domestic borrowing reduce thereby allowing the private sector more room to borrow more affordably?
8. How will businesses and individuals capitalize on the expected economic stability and improved confidence in the economy’s prospects?
Overall, there is still work to do to restore Zambia’s financial credibility, but because of this restructure the country has made a very significant stride in that direction.
