Zambia’s debt portfolio hits over USD&14BN
…but Finance Minister Dr Situmbeko Musokotwane has assured of sustainability within the country’s financial ratios
By GIDEON NYENDWA
FINANCE and National Planning Minister Dr. Situmbeko Musokotwane has revealed that Zambia’s current debt portfolio has hit over US$14 billion.
Speaking during the “Let the People Talk” programme on Phoenix FM yesterday, Dr. Musokotwane reassured the public that the country’s debt level remains sustainable within the accepted financial ratios.
Dr. Musokotwane emphasised that the debt position ali
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gns with the nation’s current exchange rate, foreign reserves of US$4 billion, and tax revenue collections.
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“The debt level is well assessed to be sustainable. As the economy grows, we will continue borrowing, but this will be done responsibly and within the set parameters,” he said.
Responding to claims that the UPND government had accumulated more debt in three years than the PF did in seven years, Dr. Musokotwane refuted the allegations, stating that the new dawn was a responsible government that would never get into wreckless and unplanned borrowing.
He pointed out that the PF inherited a $2 billion debt in 2011, which surged to over US$13 billion by the time they left office in 2021.
“It is not true that the UPND government has borrowed more. The debt we are dealing with is a legacy issue from the previous administration,” he said
Dr. Musokotwane also addressed concerns regarding the African Development Bank (AfDB) $100 million loan.
He explained that the loan was not new but had to be re-tabled in Parliament due to changes in its terms the AfDB loan was already approved by Parliament but by law, Parliament had to sit again because the terms of the loan were revised.
On the broader economic outlook, Dr Musokotwane expressed optimism about Zambia’s future, citing recent progress in resolving the country’s debt challenges and the revitalisation of the mining sector.
State House
