Govt urged to reconsider its plans to borrow K11 billion

Business and Financial analyst Blessings Kafwanka says government should reconsider its plans to borrow about K11 billion from the domestic financial market in 2018, considering the country’s high debt position.

Mr. Kafwanka says the move will further crowd out the private sector especially the small and medium size enterprises.

He states that borrowing heavily from the domestic financial market will also limit the growth of SMEs who are the backbone of national development.

Mr. Kafwanka says SMEs help government in revenue generation through taxes, adding that suffocating them will affect the country’s economic growth.