PRESS STATEMENT BY THE ZAMBIA FEDERATION OF EMPLOYERS PRESIDENT, MRS. MARA MYRA SAKALA NGOMA ON ZAMBIA’S DEBT RESTRUCTURING.

THE ZAMBIA FEDERATION OF EMPLOYERS HEREBY CONGRATULATES THE NEW DAWN GOVERNMENT UNDER THE LEADERSHIP OF HIS EXCELLENCY PRESIDENT HAKAINDE HICHILEMA FOR NEGOTIATING FOR A DEBT RESTRUCTURING DEAL WITH ZAMBIA’S OFFICIAL CREDITORS WHICH WAS ANNOUNCED ON JUNE 22ND, 2023 AT THE INTERNATIONAL SUMMIT WHICH WAS HELD IN FRANCE.

IT IS PLEASING THAT THE AGREEMENT CALLS FOR ZAMBIA’S DEBT TO BE RESCHEDULED OVER MORE THAN 20 YEARS WITH A THREE-YEAR GRACE PERIOD DURING WHICH ONLY PAYMENTS ON INTEREST WILL BE DUE. CONSIDERING THAT ZAMBIA’S ECONOMIC RECOVERY HAS BEEN SLACKING DUE TO THE DEBT DISTRESS, THE SUCCESS THAT THE GOVERNMENT HAS SCORED IN THE DEBT RESTRUCTURING DEAL IS COMMENDABLE AS IT SHOULD UNLOCK THE MUCH-NEEDED FINANCIAL RESOURCES TO PUT ZAMBIA ON A PATH TOWARDS SUSTAINABLE ECONOMIC GROWTH, AND POVERTY REDUCTION. IT IS OUR EXPECTATION IN THE ZAMBIA FEDERATION OF EMPLOYERS THAT THE DEBT RELIEF WILL PAVE WAY FOR THE IMPLEMENTATION OF ZAMBIA’S ECONOMIC REFORM AGENDA, ADDRESSING KEY MACROECONOMIC ISSUES AND UNLEASHING THE COUNTRY’S SIGNIFICANT ECONOMIC POTENTIAL.

WE BELIEVE THAT THE RELIEF GIVEN THROUGH THIS DEBT RESTRUCTURING, WILL FREE FINANCIAL RESOURCES FOR THE COUNTRY TO ACTUALISE HER STRATEGIC OBJECTIVES SET IN THE 8TH NATIONAL DEVELOPMENT PLAN, ANCHORED ON ECONOMIC TRANSFORMATION, JOB CREATION AND HUMAN AND SOCIAL DEVELOPMENT, AMONG OTHER OBJECTIVES. IT IS NO DOUBT THAT THE DEBT BURDEN THAT THE COUNTRY HAD, CREATED A SITUATION OF UNCERTAINTY ON THE POTENTIAL INVESTMENT OPPORTUNITIES THAT THE COUNTRY HAS. HENCE AS ZAMBIA FEDERATION OF EMPLOYERS, WE FEEL DUTY BOUND TO COMMEND THE GOVERNMENT FOR THIS GREAT ACHIEVEMENT BECAUSE THIS GIVES THE NATION THE ABILITY TO MANAGE THE DEBT STOCK AND IN TURN CREATE A GOOD BUSINESS ENVIRONMENT THAT MUST ATTRACT MORE INVESTMENTS IN THE PRIVATE SECTOR. IT IS A WELL KNOWN FACT THAT WHEN A COUNTRY’S BUSINESS ENVIRONMENT IS FAVOURABLE, IT SUPPORTS THE EASE OF DOING BUSINESS IN THE COUNTRY, HENCE ATTRACTING INVESTMENTS WHICH HAVE POTENTIAL TO BOOST THE ECONOMY, CREATE MORE DECENT JOBS AND RAISE THE LIVING STANDARDS OF PEOPLE.  IT IS THEREFORE, OUR EXPECTATION AS THE ZAMBIA FEDERATION OF EMPLOYERS, THAT THE NATION’S RANKING IN THE WORLD OF ECONOMIES, IN THE EASE OF DOING BUSINESS WILL IMPROVE FROM ITS PREVIOUSLY 85 POSITION AMONG 180 ECONOMIES ACCORDING TO WORLD BANK RATING IN 2020. WE BELIEVE THAT THE RESTRUCTURED DEBT POSITION WILL PROVIDE A SOLUTION TO THE NATION FOR ACHIEVING THE OVERALL AIM OF THE 8TH NATIONAL DEVELOPMENT PLAN WHICH IS TO IMPROVE THE EFFICIENCY AND COMPETITIVENESS OF THE ECONOMY TO SUSTAINABLY LIFT THE LIVING STANDARDS OF THE ZAMBIAN PEOPLE. IN ADDITION, THE RESTRUCTURED DEBT POSITION IN OUR VIEW, PROVIDES A BASIS FOR THE COUNTRY TO BUILD AND GET BACK ON TRACK TOWARDS THE REALISATION OF THE VISION 2030 THROUGH ECONOMIC RECOVERY, STABILISATION AND STEADY GROWTH, COUPLED WITH INTERVENTIONS IN THE SOCIAL SECTORS, TO REALISE THE SOCIAL ECONOMIC TRANSFORMATION THAT WILL ULTIMATELY UPLIFT THE LIVELIHOODS OF THE ZAMBIA PEOPLE. 

SO AS ZFE WE WISH TO COMMEND THE GOVERNMENT FOR DILIGENTLY PURSUING THE DEBT RESTRUCTURING DEAL. THIS ACHIEVEMENT GIVES THE COUNTRY A GOOD IMAGE AND REDUCES THE BUSINESS RISKS THAT BOTH LOCAL AND FOREIGN BUSINESS MEN AND WOMEN ASSOCIATED THE COUNTRY WITH. THE DEBT RELIEF AND THE EXPECTED RELEASE OF US$ 188 MILLION FROM THE INTERNATIONAL MONETARY FUND ( IMF ) BOOST WILL BENEFIT THE ECONOMY AND ENABLE THE GOVERNMENT TO INVEST IN FUNDAMENTAL AND PRODUCTIVE SECTORS SUCH AS INFRASTRUCTURE DEVELOPMENT, AGRICULTURE, HEALTHCARE, WATER AND SANITATION, EDUCATION AND MANY MORE.

WE WISH THE GOVERNMENT UNDER THE LEADERSHIP OF PRESIDENT HAKAINDE HICHILEMA EVERY SUCCESS IN THE MANAGEMENT OF THE ZAMBIAN ECONOMY.

THANK YOU.

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