Tayali extols President Lungu

Zambian Voice Executive Director Chilufya Tayali

The Zambian Voice says President Lungu’s address to parliament was very inspiring and has a prospective future if it is supported by all citizens.

Speaking during a press briefing in Lusaka today, Zambian Voice Executive Director Chilufya Tayali says the President set a National plan, a roadmap to guide all Zambians to the promised land of 2064.

Mr. Tayali says the president gave assurance that the country is not sliding into a debt trap because the economy has grown from a USD$ 3 billion GDP in 2005 to a USD$ 28 billion today and that Zambia is well within the acceptable international threshold of 40% of the gross domestic product.

Mr. Tayali says the explanation that government has borrowed mainly to finance roads, energy and infrastructure as a long term investment that will spur accelerated economic development across sectors is motivating.

He says the assurance by the Head of State that Government will be able to pay back the loans without difficulties with the help of the establishment of a sinking fund has also inspired confidence in Zambians.

Mr. Tayali has however cautioned government that as at end of September, 2014, the total debt as a percentage of GDP stood at 30.1% of this, external debt stood at US$ 4.7 Billion or 17.85 % of GDP, whilst domestic debt stood at K20.45 Billion or 12.32% of GDP.

He recalls that this year Government contracted another Eurobond of USD$ 1.25 Billion which increases External debt to USD$ 5.95 Billion or 21% of GDP saying it can also be assumed that with the current maize purchase by FRA and other expenses, local debt has also increased.

He adds that working on the reported external debt and last year’s local debt; people can approximately put Zambia’s debt at 38% of the GDP saying certainly this should cause concern to the President and his Government.

And Mr. Tayali says his organization is also worried about the sinking fund initiative to repay Zambia’s loans because the semantics of this meanings that the country will be keeping away the surplus money for repayment of the debt.

He says Zambia’s deficit is on the increase; therefore it is paradoxical to talk about a sinking fund.