Zambia’s huge debt unsettles JCTR

JCTR Executive Director Fr. Emmanuel Mumba

Jesuit Centre for Theological Reflection (JCTR) Director, Fr. Emmanuel Mumba has expressed concern at the rate at which Zambia’s debt has been accumulating under the Patriotic Front government.

Speaking during the launch of the study report of the research that reviewed the IMF/World Bank debt sustainability analysis framework, Fr. Mumba notes that the recent rapid and high debt contraction by government is happening at the time when the country is already grappling with rapid waste of public finances as revealed by the auditor general’s reports.

He says the centre hopes that the findings of the report will help the country improve finance management.

Fr. Mumba says the recent austerity measures announced by government are a clear indication that the country is faced with economic hardships.

He adds that the request by President Lungu for the Turkish government to help pay the interest of the Eurobonds when they become due is also an acknowledgement that the country is in a difficult situation.

Some of the report key findings in the report are that the model used by the International Monetary Fund and the World Bank to analyze and determine debt sustainability for low income countries contains gaps and risks.

The study has further established that although the IMF and World Bank have made strides in improving the design of the Debt Sustainability Analysis framework and methodology, there is still need to further refine it because most low income countries are failing to exit permanently from their debt problems.

And presenting the findings of the report, Consultant Charity Musamba has recommended the need for a national wide movement on public debt and public accountability in Zambia.

Dr. Musamba says there is also need to galvanize national interest on debt and loan contraction through civil society organizations, the media and other groupings.