LCC has no capacity to issue municipal bonds – Mayor

Lusaka Mayor Wilson Kalumba says it is not feasible for the local authority to start issuing municipal bonds any time soon as it has no capacity to do so.

Municipal bonds are debt obligations issued by states, cities and other governmental entities, which use the money to build schools, hospitals, sewer systems, and many other projects for the public good.

In October this year, Finance Minister Felix Mutati revealed that Government is working out modalities to allow the local authority to issue municipal bonds through the Lusaka Securities Exchange (LuSE), to help them raise funds for implementation of various projects.

But Mr. Kalumbi has told Q-News that the premise on suggestions to put up municipal bonds is not clear as no discussions have been held in this regard.

Mr. Kalumbi says such a development would require massive sensitization as most of the citizens and marketeers do not understand what a municipal bond is all about and what it will require of them.