Mphuka cites Corruption as one of the main drivers of rising debt in Africa

Economist and University of Zambia lecturer Chrispin Mphuka has cited corruption as one of the main drivers of rising debt in Africa.

Making a presentation on the regional perspective on drivers of public debt and potential solutions during a public debt symposium in Lusaka, Dr. Mphuka says in the Southern African region, Mozambique and Zimbabwe are already in debt distress, while Zambia is at high risk of debt distress.

He says rising domestic borrowing is crowding out the private sector and dampening economic growth.

Dr. Mphuka has encouraged African countries to increase among other things, domestic resource mobilization, accelerating structural transformation to move away from dependency on commodities so as to avoid debt crisises.

He has also noted the need for austerity measures not only to be put in place, but to be implemented as well.

Speaking earlier, Consumer Unity and Trust Society National Coordinator Chennai Mukumba has expressed fear that failure to come up with a proper debt management strategy will result in the continued rapid increase in the country’s public debt.

Ms. Mukumba says this will in turn have consequences on the economy and the Zambian people at large.

And making a presentation on Practical solutions to help address Zambia’s debt position, Zambia Institute for Policy Analysis and Research [ZIPAR] research fellow Shebo Nalishebo has called on government to work on mechanisms to issue a specific infrastructure bond to raise money locally.

Mr. Nalishebo has also recommended that government takes up the offer to sell ZCCM-IH shares in Kansanshi mine.