A team of global investors led by J.P. Morgan Sub – Saharan Economist Ayomide Mejabi met with the Economics Association of Zambia team led by its president Dr. Lubinda Habazoka in Lusaka on 01 Nov. The team comprising various fund managers and eurobond holders visited Zambia to assess economic pulse.
Despite debt sustainability concerns, the Association is confident that Zambia will meet its repayment obligation given the current bullish macroeconomic variable landscape. The Association further revealed that the state still has room to implement measures that would slow the accumulation of debt further to acceptable and sustainable levels.
The investors however stressed the need for frequent, consistent and timely updates on Zambia’s fiscal performance. This, the visiting team said would ease their concerns.
Concerns were raised on the levels of capital expenditure for infrastructure development, being a key driver of the current debt position. In this vein, investors highlighted the need for credible commitment to downward adjustment to borrowing requirements.
The Association assured the visiting team that Zambia was strategizing around a plan to redeem its debt obligations when they fall due.
At an opportune time, the EAZ is hopeful that the Finance Ministry will share and announce a debt redemption strategy.