Honorable Mwanakatwe touring the Kazungula bridge under construction. The bridge will increase traffic flow into Zambia, Zimbabwe and Botswana. Currently ferrying if traffic is done using a pontoon which is very risky. The Kazungula corridor is said to be a very lucrative route to facilitate trade among SADC member states.
The state is alive to the vulnerabilities of its rising debt profile;
Keeping debt in check will be harder than anticipated as the copper producer aims to grow economy;
Zambia’s external debt stock as at end of Q3:2018 rose $140mn to $9.51bn, according to the MinFin’s quarterly fiscal performance report. Drivers of this move were additional disbursements in the quarter totaling $140mn.
Public Finance Analysts have however argued that infrastructure is key to Zambia’s development goals and as such the copper producer is projected to grapple with keeping debt accumulation in check.
Kazungula bridge construction at Kazungula – Kasane border post.
“Government acknowlegdes the rising vulnerabilities from its debt profile and committed to implementation of austerity measures to ensure movement back to moderate debt risk distress,” the MinFin carried in its Q3 performance brief.
Zambia is in the middle of stalled negotiations with the International Monetary Fund – IMF for a $1.3bn bail out package. This follows debt sustainability concerns which have led the red metal producer to be classified as having been in high risk of debt distress alongside 6 other SSA nations.
More articles on Zambia’s external debt.