Debt servicing gulps K4.7 billion as Zambian government spends K16.6 billion in October

The Ministry of Finance and National Planning has announced the release of K16.6 billion in October to support developmental programmes and general public service delivery across Zambia.

The government allocated K4.5 billion of this amount to cover the public service wage bill, including salaries and allowances for various public service workers.

This included health and teaching staff as well as overseas allowances for Zambian diplomats stationed abroad.

As part of its commitment to reduce national debt, the government allocated K4.7 billion to debt service and arrears.

This allocation included K2.2 billion for domestic debt service, K256.9 million for external debt obligations, and K2.1 billion to address arrears, particularly on legacy fuel supplies.

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According to the Ministry’s budget release issued by the Treasury on Sunday, “Notable expenditures included K3.5 billion for transfers, subsidies and social benefits, K4.2 billion for implementation of various development programmes, general operations and capital expenditure of which K700 million went to drugs and medical supplies.”

Finance and National Planning Minister, Situmbeko Musokotwane, used the announcement as an opportunity to encourage international investors to consider Zambia as a viable investment destination.

Speaking at a recent World Bank meeting in Washington, Musokotwane underscored Zambia’s competitive investment environment and called for partnerships in renewable energy, mining exploration, agriculture and manufacturing.

“Zambia is endowed with critical natural resources, and we invite you to collaborate with local business players in mobilizing the resources required for green energy projects, mining explorations and development, and agriculture value chain ventures that support out-grower schemes through farm blocks,” Musokotwane stated.

He urged investors to partner with Zambian businesses, emphasizing the benefits of collaboration in key sectors of the economy, including energy, mining and agriculture.

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