Q FM Africa's Modern Radio
Former Finance Minister Situmbeko Musokotwane has described the speech President Lungu made in Parliament on Friday as disappointing and containing weaknesses.
Speaking at a media briefing held in Lusaka Dr. Musokotwane notes that President Lungu failed to address the issue surrounding Zambia’s indebtedness to China.
Dr. Musokotwane who was Cabinet Minister under the Rupiah Banda MMD government thinks that Zambia’s indebtedness to China is the most pertinent issue at the moment.
He says this is why he personally finds it disappointing that President Lungu only scratched on the issue in what he has phrased a paltry 30 seconds.
Dr. Musokotwane states that his party, the opposition UPND, will however use every opportunity in Parliament to seek clarity on Zambia’s indebtedness to China and how government will resolve it.
He believes that with the loans that China keeps piling on Zambia, relations between the two countries are at the risk of becoming tense once Zambia defaults the repayment.
And Economist Oliver Saasa says he expected President Lungu’s speech to touch on whether Zambia will in the next three years create capacity to service external debt when it falls due.
In an interview by telephone Professor Saasa said in his view government should not lose sight of the fundamental point that Zambia’s current debt stock is quite significant.
Professor Saasa says looking at its growth potential and prospects in the next three years, just before the bullet payment of the US$750 million Eurobond is due, he foresees Zambia falling into debt distress.
He states that taking corrective action is what is therefore expected on the part on government if the Country is going to avoid this.
Professors Saasa says the corrective action is in fact what he expected President Lungu to bring out in his speech to Parliament.
He says his expectation at this end is that the Minister of Finance will give more clarity on this issue as she presents the 2019 national budget.