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Finance and National Planning Minister, 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 on Tuesday, Musokotwane reassured the public that the country’s debt level remained sustainable within the accepted financial ratios.
Musokotwane emphasised that the debt position aligns with the nation’s current exchange rate, foreign reserves of US$4 billion, and tax revenue collections.
“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.
Read more: Zambia’s external debt rises to $15.17 billion by Q2, 2024; up by 4.1% from December, 2023
Responding to claims that the UPND government had accumulated more debt in three years than the PF did in seven years, 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.
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, noting that 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, Musokotwane expressed optimism about Zambia’s future, citing recent progress in resolving the country’s debt challenges and the revitalisation of the mining sector.
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