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Golden Party of Zambia (GPZ) leader, Jackson Silavwe, has urged the government to introduce a debt swap programme for civil servants and workers burdened by rising loan repayment interest rates.
In a statement issued in Lusaka on Friday, Silavwe also proposed further reductions in Pay As You Earn (PAYE) and the introduction of direct tax incentives for households and local businesses to stimulate economic activity.
He criticized the UPND government’s approach to managing the economy, arguing that consistent increases in the monetary policy rate (MPR) have drained liquidity from the local economy, reducing the spending power of workers and households with loans.
“This has suffocated the informal sector, as civil servants and workers—who are the biggest spenders—have less money to inject into local businesses,” Silavwe said.
Read More: Zambia seeks new IMF loan under sustainability terms, eyes debt-for-nature swap
He warned that if the trend continues, more informal businesses would collapse, leading to increased unemployment.
“President Hakainde Hichilema and his government cannot ignore this self-inflicted economic cycle. They must act now,” he stated.
Silavwe called on the government to support workers and the informal sector by introducing deliberate incentives to boost spending power, ensuring the economy remains afloat.
“Modern economies grow when workers and the general population actively spend in their local economy—the rest is fiction,” he added.
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