Musokotwane Seeks More Borrowing, Recalls Parliament
Zambia’s Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, has requested the Speaker of the National Assembly to recall Parliament for an urgent session. The aim is to secure approval for additional borrowing to address the growing financial pressures the country is facing. This comes after two supplementary budgets were already sought earlier in the year.
The 2025 national budget, set at ZMW 217.1 billion, represented a 9% increase from 2024. It was designed with ambitious targets, including a projected GDP growth of 6.6%, inflation reduction to between 6% and 8%, and a budget deficit limited to 3.1% of GDP. However, those targets are proving difficult to achieve, as the country grapples with several economic challenges.
The budget was to be financed through domestic revenue of ZMW 174.2 billion, including ZMW 137.4 billion in tax revenue and ZMW 36.8 billion in non-tax revenue, as well as ZMW 8.1 billion in grants from cooperating partners. Borrowing was initially capped at ZMW 34.7 billion to cover the financing gap.
Economic pressures, however, have shifted the landscape. The ongoing effects of a severe drought have disrupted agricultural production, leading to food insecurity and stunted economic growth. This, coupled with the burden of managing Zambia’s significant debt repayments, has created a perfect storm of financial strain. Rising inflation, driven by higher food and fuel prices, has compounded the situation.
Critics of the government’s borrowing strategy argue that continued reliance on external and domestic loans is unsustainable. They point to the need for stricter fiscal discipline and greater transparency in public expenditure. Opposition leaders have also raised concerns about the lack of clarity on how previous loans and supplementary budgets have been utilized, questioning the government’s ability to deliver on its economic promises.
Dr. Musokotwane’s move comes at a time when the country is navigating the impacts of global economic pressures. Rising interest rates and a strengthening US dollar have increased borrowing costs for Zambia, limiting options for fiscal maneuvering. Domestically, the government faces the challenge of balancing social sector spending with investments in infrastructure, all while dealing with limited resources.
The call for Parliament to approve further borrowing underscores the urgency of finding immediate solutions. However, it also raises questions about Zambia’s long-term fiscal sustainability. Observers are closely watching the developments, with expectations that Parliament’s response will set the tone for how the country addresses its economic challenges in the coming months.
As Zambia faces this critical juncture, the pressure is on to implement innovative strategies to stabilize the economy and steer it back toward growth.
Stephenson Mangolwa
“Musokotwane Seeks More Borrowing, Recalls Parliament”
Shouldn’t we be saying now we know why PF was borrowing?
While Lungu’s friend, Filipe Jacinto Nyusi is busy committing genocide against Mozambiquians. Venanco Mondlane’s technicians have cracked into the Electoral Commissions database exposing massive electoral fraud.
This is to approve the wrong payment of $80 million to the Chinese by ZESCO
They are the same government under a different name!
I suppose it to pay the increased civil service wage bill
To our children and grandchildren we apologize the burden we are going to leave you
Was New dawn not telling us PF overborrowed? What is different now?
They are doing the same.
Borrowingto address the growing financial pressures caused by devasteting drought, strengthenig dollar rising world oil prices and not borrowing to buy personal helicopters, luxurious cars,flats and fishponds
Imagine! Borrowing without any Sontapo! At least Lungu pointed at two international airports, a stadium a hospital but borrowing when you are trying to clear the road from Lusaka to Ndola for a dual carriageway! What will happen when construction starts??
Recall parliament to debate………….borrowing, to address the growing finacial pressure the country is experiencing. This is what a sober prudent government presents to the nation through parliament to delibarate on national matters. Unfortunately, some MPs have fled the country and their contituences without representative, other MPs are convicts serving jail terms and yet others do not even know how to debate or conduct themselves, frequently sent (chased) out of parliament – even by dress code. Zambia needs serious MPs to to display with aptitude on parlimentary debates over national matters.
He has no shame! you are handing out our mineral resources under our noses but borrowing is all you know. These village boys need to go!
Ubwafya ba UPND from their leaders to supporters are shameless and a person with no sense of insoni temuntu.They can do nonsensical things and justify them shamelessly.
@Muna and MuZambian how do you think ECLs government managed to give you and your relatives an affordable cost of living?
As for these be rest assured that they are borrowing for their contracts not for you and your poor relatives.
2.8 Lies
Your so-called affordable cost of living were cheap populist handouts for which you are now paying dearly.You were blinded while they pocketed the most.PF defaulted on foreign loans because of that affordable cost of living.The consequence is food for work,social cash transfer,Cash for work,CDF and other social safety net components
Try to explain this to your relatives
Musokotwane recalls parliament. He is the new speaker????
Say what you like, but……..
Every normal person knows the economic burden the aquired PF debt and the drought has had a devastating impact on projected recovery plans………
There is not one area of finance indispline or reckless spending to point at, if there is ……….
It is addressed by GRZ without muchado…..
This is appreciated by the supporting world community……..
The business of delivering statecraft continues forward…..
FWD2031
Then better we should have allow PF in power. They seem to have a plan for what they are doing. This govt looks clueless and it’s complaining about PF day and night. Our praise team is also lost. Nothing they praise make sense. Sure normal people can praise HH for bring the cool box?!! The best upnd has done so far is giving vendatta his KCM. The economy has collapsed
Redo December
“…Then better we should have allow PF in power. They seem to have a plan for what they are doing…”
And what plan is that ?? Cader violence, corruption and unabated borrowing ? If PF was still in power , zambia would have been a failed state…
With this drought , what were they going to
do ?? Open up mines in game parks ,???
Even now the opposition have no answers to zambias problems, …….
FWD2031
What economic burden naiwe? When in June last year Musokotwane himself told us his debt restructuring acumen had magically convinced our loan sharks to charge us less.
Meaning Zambia now has less to pay. Why do you UPND cadres forget your own lies?
Hon Minister,
Please give me a hearing.
I have plans to attenuate the crisis through:
** Improved artisanal mining production
** Tillage methods to improve water retention properties of Zambian’s soil, and
** Means to harness rain water along the Zambezi River catchment area
You ve been saying this for a long time and it seems like Thabo Kawana’s team doesnt take you seriously. Do you have a blue print? If government wont listen to you some other people might.
I have 3 pragmatic blueprints. If needed, I could be in Lusaka in 3 days time to present my proposals
The civil service overall has over employed by more than 200% hence the pressure. Going to Parliament is just cosmetic since the Upnd has decent numbers boosted by directionless Miles and his cohorts.
It seems like Miles pipeline to community house is severely drying up. He wants to do a u turn but can’t negotiate his way round it. He might quit
Whilst we keep tightening our belts it appears the government is doing the opposite
I wondering who brought about these economic challenges we are now facing
it’s just too easy to blame the past regime
This govt needs to go. They do not respect our constitution and have divided the country. They are a disaster and a plague upon our country
Where has this GRZ not respected the constitution……?????
They arrested Patel, Jason Banda, Zumani Zimba Nakachinda Allan Phiri, Chilufya Tayali, even Mwamba on either fake terrorism hate speech charges or no charges at all.
Minister, you claim to be educated so please answer these simple questions. Zambia has plenty of natural resources, how are you failing to trade your way using your God given resources? Why are you not recalling Parliament to stop the coppers, gold, uranium, manganese, wood, animals etc being looted out of the country? Who is your allegiance with if not the Zambian people. Awe these thugs need to be investigated and shown the door.
Ba litobela kale so they have to return the favor.
This govt is working for foreign powers and pushing the western agenda on Zambia.
Future Zed
The minister’s answer:
1.You over borrowed and all your capital accumulated is going back to creditors
2.The current draught has been worsened by PF lawlessness;,unregulated human settlements has caused deforestation, dried up water bodies, illegal mining
3.PF corruption, theft and mismanagement has severely distorted resource allocation from priority socio-economic sectors to luxuries, populism and prostitution
With all these resources we are still a begging nation? How many years have we been with copper? How many copper based industries do we have in 60 years of being in charge?
@2.8Lies, are you aware that Zambia defaulted in repaying loans borrowed by PF and ECL. Are you aware that Faith Musonda girl friend to ECL was found with more than K65 million from BOZ without any explanation on the day ECL PF, lost elections?. Are you aware of numerous corruption cases going on in court committed by PF ministers and cadres. Are you aware PF ECL borrowed recklessly without knowing how much was borrowed?. Are you aware some MPs have fled the country because of cases committed and investigative wings are waiting for them?. If this is not a rot to you, then go to Chainama.
With all due respect you mention PF I put it to you hasnt this not happened with past regimes
Doesnt matter to what extent it still happened and it will be no surprise when this lot go massive figures will be thrown around as well
PF was not supposed to be voted out. It seems they had a plan. If someone borrowed, he had a plan on how to pay it back. This govt is completely clueless. The economy has completely collapsed.
Defaulted yakuti? Musokotwane said he had got us out of that. He boasted that IMF gave us a new loan with renegotiated repayments. So why do you keep alluding to what you claim to have solved?
This useless govt is perpetrating the colonization of Zambia and pushing us into entanglements with western countries. Some countries in West Africa are liberating themselves from the West and taking control of their resources. We do not need to give away our resources for free to these countries. All we need is to be self sufficient. However this govt has sold our food and electricity and are driving us into dependency on aid. This is criminal
Get your facts straight we are giving our resources and food security to the Chinese not the west, who built all the fancy airports, highways and disabled Kariba dam by adding too many extra turbines , draining the dam to fast and paying way to much for new airports and other things that our grand children will have to pay for. Tax the Chinese hard and heavy not us.
Cosmos naiwe use your brain. A developing country’s card is only resources until you develop your own beneficiation initiatives. So stop pointing blame at who you sell your resources to. The Chinese will come here on your terms.
On the other hand the West was here at their own terms and they stripped you of all they could lay their hands on. How on earth do you tax someone “hard and heavy” who wrote off your debt? You didnt pay them back for Tazara and you have now asked them to refurbish it. After they constructed for you, Kafue Gorge, KKIA, Ndola airport, Heroes Stadium etc.
If you cant use your initiative and create beneficiation while these investors, fake and real, are here dont keep running back to the developed state with a begging bowl.
In Africa beneficiation is a strange economic principle
I know pf will criticize this move. Yes economy has collapsed. The govt need to settle this huge civil servants wage bill. ZRA is failing to meet the target. The only way forward is to borrow. Every govt borrows. This is not strange. The problem is they miss budgetted
If they over employed people for political reasons, they should come clean and apologize to the nation. You can not have our country becoming indebted for consumption. Those employees that were wrongly employed can stay at home and we should remain with basic staff complement in GRZ
Unwelcome facts remain that had PF not over-borrowed and simultaneously driven down all the GDP indicators we wouldn’t be in this unwelcome predicament.
The mistake most are making here is looking where they fell instead of looking where they stumbled over some rock.