Economist seeks more engagement with China for resolution of Zambia’s debt

Economist Mathews Muyembe has said Zambia should work on re-establishing strong economic diplomacy with China in a quest to the much-desired debt restructuring.

Muyembe said like President Hakainde Hichilema observed that failure to achieve the much-needed debt restructuring in time would continue affecting key economic fundamentals meant to stabilise the economy.

“The Government should ensure that China, which we owe around US$ 6 billion in debt, is engaged so that we resolve the debt restructuring puzzle which is delaying the process,”he said.

On the other hand, he urged mining houses to take advantage of the high performing copper on the international market to ramp up production.

Muyembe who is Economic Association of Zambia (EAZ) Copperbelt chapter chairperson said for the country to reap more economic benefits from the surging copper price on the international front, mining houses should not hold on production.

“As we produce more copper, there will be a lot of economic benefits not the current production levels, the Government has given a leeway for mining companies to ramp up production through tax concessions which they should take advantage of and increase production,” Muyembe said.

He said in an interview on Friday that it was encouraging that Zambia was receiving global attention since President Hakainde was ushered in in August 2021.

Muyembe said benefits had delayed manifesting because of the external debt stock whose restructuring had been delayed for some reason.

He said low power supply being experienced since early December 2022 was a drawback to meeting the country’s economic benchmarks.

Muyembe said despite the confidence and soaring copper prices on the international market which has seen the red metal hovering around US$9,500 per tonne, the Kwacha had been failing to hold on because of the net effect.

“Our Kwacha is not fixed but a free float, there is a net effect here when you weigh the positives such as good international sentiments and high copper prices, the net effect is still negative because load shedding has been affecting production even in the mining sector,” he said.