EAZ Applauds Debt Restructuring Progress

The Economics Association of Zambia (EAZ) has praised and welcomed the government’s progress in debt restructuring. This successful restructuring has helped to boost Zambia’s international reserves to 4.5 billion US dollars.

This reserve could sustain six months of imports and will limit disruptions to trade, ultimately driving down the cost of goods.

Dr Nicholas Mainza, EAZ’s National Secretary, has praised the government’s transparency in debt management and the consistent release of debt data to the public. He claims that these actions have resulted in improved investor confidence.

Dr Mainza further highlighted the stability of the kwacha as a further positive indication that the government’s ongoing economic planning efforts are yielding results. However, Dr Mainza expressed some concern over the limited access to affordable finance, especially for small businesses and rural farmers.

He called for actions that made credit more accessible and affordable, mirroring the government’s own concerns and attempts to foster inclusively.

Meanwhile, at the Centre for Trade Policy and Development, Barnabas Mwale described the Citizens Economic Empowerment Commission loan initiative as positive, although he did highlight that many small and medium enterprises (SMEs) are left out due to the requirements such as collateral and bank statements.

Mr Mwale also welcomed Zambia’s partnership with the IMF under the Extended Credit Facility. This programme, approved by the IMF in August 2022, was initially valued at $1.3 billion and is aimed at restoring macroeconomic stability and ensuring debt sustainability.

Financial Analyst Yusuf Dodia stated that the Export Proceeds Tracking Framework is a key tool to ensure export earnings benefit the local economy.