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The Centre for Trade Policy and Development (CTPD) and African Forum and Network on Debt and Development (AFRODAD) have held a national forum on debt and development to discuss Zambia’s post debt restructuring.
During the forum held in Lusaka on Thursday, the organisations implored government to enhance domestic resource mobilisation as Zambia realigned its economic activities in the post debt restructuring era.
This is part of the fora which AFRODAD has been hosting in African countries to help countries find home grown debt solutions.
Peter Mumba, Civil Society Organisation Debt Alliance Coordinator, in his presentation said Zambia’s case of debt restructuring showed progress could be made to render the Common Framework more workable to restructure sovereign debt.
Mumba, however, said more needed to be done to refine a comprehensive, efficient, and effective sovereign debt restructuring procedure.
Read more: Debt restructuring is start of real work towards Zambia’s economic transformation —Hichilema
As at end of the first quarter of 2023 Zambia had a total external debt stock of US$14 billion owed to a collection of private, bilateral, and multilateral lenders.
Out of Zambia’s current debt stock, the agreed debt restructuring agreement hopes to restructure US$6.3 billion owed to bilateral creditors.
“Zambia’s case also exemplifies the call for a “New Debt Movement” and outlook that is needed to address issues of domestic resource mobilization and equitable investment in public services in Africa.
“Long-term solutions involve strengthening the legal framework governing public debt and ensuring parliamentary oversight. Curing the information asymmetry challenge in public debt management is of paramount importance,” Mumba said.
AFRODAD Policy Analyst, Joshua Shem, said concerted efforts were needed for African countries such as Zambia to sustain its debt restructuring.
Shem said it was time for African countries to raise their voice and be heard in terms of negotiating for better terms and conditions for debt restructuring.
Ministry of Finance and National Planning acting Assistant Director in Charge of External Debt, Maryann Lwandamina, said: “despite this huge step, Zambia is yet to sign a Memorandum of Understanding with its official creditors to facilitate discussions with individual creditor nations.”
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