Q FM Africa's Modern Radio
The Zambia Association of Manufacturers (ZAM) has observed that the Eurobonds issued by the government are not impacting on Zambia’s productivity because of the model being used to invest the borrowed funds.
ZAM Chief Executive Officer Maybin Nsupila says his Association has taken note that most projects in which the Eurobonds funds have been invested are being implemented by foreign contractors who have not been given conditions with regards the sourcing of raw materials.
Mr. Nsupila says this is what his association suspects has not been able to trigger local production and creation of jobs the Eurobonds funds were expected to trigger.
He has told Qfm News that ZAM thinks that if government had given conditions that most raw materials being used in the projects be sourced locally, Zambia could have made more headway in the area of industrialization.
Mr. Nsupila notes that this development would have been in terms of triggering local production and value addition to raw materials.
He says this is in turn could have helped the country galvanize resources for servicing the Eurobonds.
And Mr. Nsupila thinks government’s idea of servicing the Eurobonds through both refinancing and making savings through a sinking fund is the right this to do.