This year in October the Debt, Aid and Trade Programme of the Jesuit Centre for Theological Reflection (JCTR) commended the government for sticking to its debt management objective of raising adequate levels of financing at minimum cost and risk. At that same time, the Zambian Government contracted a new loan of US$8 million from the Arab Bank for Economic Development in Africa (BADEA) for the rehabilitation of feeder roads in the Copperbelt Province.
Hardly two months later, Government has again signed a US$24 million credit facility with the African Development Bank (AfDB). This loan is a concessional one – meaning that it is payable at low interest and over a long period of time – for budgetary support for 2009 and 2010. This loan also comes less than a year after Government committed itself to a credit facility of US$6 million with OPEC for the rehabilitation of 40 feeder roads on the Copperbelt.
“It is important to recognise that borrowing in itself does not amount to poor economic management or luck of sound development strategy. More so if it is a concessional loan. But what is of concern to JCTR, particularly in the Zambian context is the institutional arrangement under which that borrowing is taking place and the intention of that borrowing,” observes Privilege Haang’andu Programme Officer for Debt at the JCTR.
It is clear that the bad state of roads, especially in the agricultural parts of our country, is a major setback to the development of the agricultural industry in Zambia and therefore may need financing to improve them. In this time of rising food prices (maize), no greater need could be perceived than that of focusing on the improvement of the road infrastructure in order to promote agricultural productivity.
As has been said severally, the prospective economic future of this country largely depends on concrete transformation of its incredible agricultural potentials.
Although borrowing may not be avoided, it is fundamental and a matter of great urgency that Zambia puts in place a Debt Management Framework to guide her practices of loan contraction and the management of the borrowed resources. The pre-HIPC experience of reduced investment resources is still fresh to the Zambian people and any continued borrowing under the current laws has the potential to take the country back to those pre-HIPC experiences.
It is important that Zambia moves into a situation where borrowing happens within a sound institutional and policy framework that will provide proper guidance as to the need for borrowing and the timeframe within which the borrowed resources are applied to avoid incurring unnecessary additional costs.
The JCTR would like therefore to remind the new Government, particularly the Minister of Finance and National Planning of the promise that was made by his predecessor to look into reforms of the debt laws. The Government cannot keep promising without acting, the debt stock is quickly swelling, with current estimates putting it at over US$2 billion. The JCTR and collaborators, continues to call upon Government to FINISH THE WORK it promised to the Zambian people by making sure a Debt Bill that will cushion Zambia from a possible debt trap is enacted.
For more information contact:
Debt, Aid and Trade Programme, Jesuit Centre for Theological Reflection
P.O. Box 37774, Lusaka, Zambia: Tel: +260 211 290410
Fax: +260 211 290759, Email: [email protected] Website: www.jctr.org.zm
Number wani
You dont know that for us thats normal?
What policy? If anything even the word “policy” is french to us.
THE ANSWER IS YES
[-([-([-(
no matter how much we talk nothing will be done.
The guys are borrowing to finance the gaps in the budget created by the hospital and funeral expenses of LPM, may his soul rest in peace. The other cost that we are saddled with is the emoluments for politicians and constitutional office holders which has just been announced in the wake of world financial turmoil. We are in the jungle where jungle rules apply. Money for politicians is readily available when we are failing to even rid our hospitals of rats which are now starving, since no food is cooked in our hospitals, to an extent of devouring babies. We need to change the leaders and their attitude please.
Hey this is serious. You mean our debt is already US$2 billion!! When did that happen? I thought the Pre-HIPIC debt was US$7 billion. Where did the money go. Is this a classic case of even if you bail out a debt minded person, he will accumulate even more debt? This is Sad read all you numbers 1-6. This is serious stuff. Stop playing game. Read this than just say number one. You must be the professionals Mumba Kapumpa was talking about over the weekend. Check the other thread for details.
Why can’t we down size the govt and cut costs. get rid of deputy ministers and bundle some ministries into one. Realistically we are a small country we just need a 10 man cabinet that the 65 we have now
Policy pa ZED?? Zambia is one country which has never even thought about that! The western world has spoiled us with donations. ;;)
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Imwe bantu! Is it wise to be borrowing so much with the financial crisis looming over us? We need to stop fya nkongole!!! [-(
We actually very behind. Zimbabwe is ahead of us by far. If only the situation can get very bad then we shall wake very good people and at that time time we shall have honest political managers
:)] Even a katondo business man has a debt management plan even if it mean pretend to be very busy when the debtor comes calling it works up to a certain level. If you dont believe me ask Zamtel staff they are good at this trick. To borrow without a plan is completely unacceptable for a government it seems they are more preoccupied with praising themselves for managing to secure nkongole(borrowing)there is always the 2nd option [-o< out loud
ooh and run =))
#7 the fact still remains, we shall talk, we shall bring up suggestion but no attention will paid to it considering the people we put in government
Chayamba chi Nyama soya again. This sily president will plunge us into unspeakable misery.
Well done JCTR, tell them
:d
#19 sony eric
Whats that smile all about?
#15
Is this the time you are brushing your teeth????
I’m just trying it for size Baby C :d
How are you today?
definately, because you have danderheads in government.you will continue untill Jesus comes
I bite :d
#17
[-x there you go pointing the accusing finger, do you not realize that this is a problem that has been there since God knows when. This is why even Sata said he will extend the corruption fight beyond FTJ term which i think was the only good thing to come out of his mouth. It is not Bwezani’s problem its a national problem which we should all take responsibility this culture of blame and lezyness seems will not go away easily. At least the politicians think they have worked hard enough to manipulate the system. Even Maureen whts gov to listen to opposition and when LMP was there how much did he listen coz he was arguing with them most of the time my RIP armchair critics we r called
Hmmm! let me it a try as well! :d ouch!!!
Baby C,kaponya issues dont suit you. I liked you before you smiled
Tomato,tomato balunda onion naya yadula, Zambians will now even remember this song.But mwacula bena Zambia kwena. i only hope that you are learning lessons and you will never make mistakes again in 2011. Fertilizer, still K200,000. Mealie meal up, fuel the same.Yangu mayo weeeeeee! :)>-
#29 is that UNIP?
How i wish they could hike the cost of mealie meal again 😕
LT please have pity for us kaponyas you have MMD :d/ and UNIP :)>- but no PF symbol…
MMD :d/
ha ha the MMD one doesn’t work, appropriate
#28 Ba Moze
Ok im back to my normal self ;;), how do i look?? pretty huh?
Sony Ericsson Phiri, I cant find the symbol for Amaka my friend, so i have just gone unip
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MMD [-x
#29 Rashid Jones
Ulimubemba wakwisa??? how was your weekend??
^:)^Nice one**==
[-(RB
o=>=Baby C,8-x= Maestro,:-c=Free market capitalist,:-l=Chewe,:-@=Sarah jones
LOL Rashid on your choice for Maestro! :))
l-)
So whats the topic again???
Debt, debt, debt..
We sometimes speak like we dont live in Zambia.
Sometimes I would listen to Magande anounce his budgetory allocations in parliament with a lot of vigor and I would wonder.
As long as we remain blind to factors affecting our budgets and consequent development we will shoot in the air until we run out of bullets.
Over 75% of Magande’s budget was going into the pockets of a few civil servants and their associated boards.
This was and is being done by way of serminars, workshops, travel and many otner types of allowances.
Only 25% would remain for projects which, at the final serminar, would then be declared to be insufficient to carry out the projects.
Rashid Jones=:-b
#45 cont’d
Also the goverment(politicians) spending needs to be looked at. The travels they make, the workshops they hold, the contracts they sign, etc. How can a minister award a contract to a company to do work for $150 million and yet the same work could be done with even better quality of workmanship at $30 million and yet no one monitors, no one questions and no one bothers
Unless the public begins to hold leaders accountable crying will not end. Now, why is this difficult to do? The very people that aught to speak for the masses are themselves corrupt. The Tender board is a money making machine for certain people, used to milk cash from govt.
These are issues we need to deal with.
Mwaupe, wow
Pathetic leaders of this nation are just sellings the country again. Do they think of their children?
#47, Walasa
:(( rashid
This so called ‘your comment is awaiting moderation’ is now getting to my nerves! is it part of the upgrade, LT???? ;;)
It’s very quiet – where is everyone…
this update baLT is laka =))
:-w This country awe mwandi katwishi. Only God knows.
our leaders behave like animals,they dont have no morals,that money will somehow end up in their pockets thru ghost contractors.kubalowa che leprocy
:p,Anonymous
The possibility of talking until you run out of ideas is very high. the simple truth is YES… how do you think our leaders are going to get rich????
Its is true 59, at the end of the day we need to look at it that way. our leaders have seen a golden opportunity to make money. they hold big offices and they need to buy enough cars and houses, get all the women they can, eat as much food, take trips abroad, etc. This is the only chance they get. Now, to keep talking about how our country should be run is just noise to their ears! First priority is their pockets!!
Zambians let’s wake up . Civic Education is needed about our rights we are the ones with the authority to put checks and balances on our govt.
2 billion huhh….
Zambian govt is like a comedy show.
You rip what you sow.
M.Y.MMD.S.S.T.D 8-|
Zambia forward, in tune with the Nation!
Thank you LT for providing only sensible animations:
:)>- UNIP, MMD l-), UPND =; others :-@
The problems is that mwanjaila kepempa na kumba!!!!!!! these same culprits asking for funding are busy diverting funds in their pockets. Everyweya Zambia are known for asking for aid, wat a bad reputation for a rich country like Zambia…
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Rahid Jone #42….you have me cracking up!!! LMAO!!!! :))=))l-)You are nambala one this is why Baby C is just doing robot eyes for you!!!~:>
#59 & 60 Nigerian Passports are available ka!
#41 I am sure you hear the world bank telling them the same. Chaps are just about themselves. They should learn from Zuma, Mugabe and Mbeki…Not one person has any respect for them….I am sure Odinga is just short of sending his kins-men to sort out Mbeki with Bostwana’s preisent in tow.
What defeats me is why we continue to borrow to finance projects that already have specific allocations of funds. There is a fuel levy on every litre of fuel that is meant for road rehabilitation.Can the govt. be more transparent and tell us how much it raises annually and how it is spent. We may suspect that these funds are abused.If we will continue to borrow to fund road projects then why impose a harsh fuel levy on people.It is better for govt. to consider abolishing this tax if it is not serving the intended purpose. Then we will not ask when funds are borrowed for that purpose
Well, take how much you are going to accelerate your debt with and split it in half. Take one half and split into 2 other mpnaeyts, put one in a rainy day fund and one in the emergency fund.Emergency fund being if one looses a job, rainy day fund is if your water heater explodes.Take the other half and accelerate the credit card debt. Stack the mpnaeyts as you pay them off to make the snow ball effect appear and continue that onto the car note.That way you get the debt paid off AND the funds you need incase something happens.For the funds though, make sure where ever you put them, they get more interest than inflation at the very least, otherwise you are loosing money.