Former fiscal head Honorable Felix Mutati counseled the Zambian authorities to expedite efforts to re-profile its debt, especially that owed to the Chinese and the portion housed in dollar bonds as this would provide clarity and ease the burden on the resources the nation has.
Mutati also advised the state to step up its IMF engagement efforts as talks with the Washington based lender were indispensable. The former MinFin head also said the recent energy reforms should be operationalized to attain the requisite efficiencies in the energy sector. Communication of vivid debt redemption strategy is one area the copper producer has struggled with and a key driver of investor nervousness as to default risk.
On his clock, Mutati had commenced dialogue with the IMF for a bailout package while simultaneously running with the Zambia plus program a ‘homegrown road map’ to fiscal fitness restoration. Mutati was then under vague circumstance replaced by former commercial banker Margaret Mwanakatwe whose stay in Office was narrowed by perception quagmires in the international markets and was replaced by former deputy governor operations Dr. Bwalya Ng’andu.
Zambia grapples with external debt of $10.23billion which has leaned its production possibilities in other sectors due to huge debt service amidst a deepening energy crisis which has suppressed growth to decade lows.
The Kwacha Arbitrageur