Africa-Press – Zambia. The Zambia Tax Platform, an alliance of different civil society organisations, is optimistic that the staff-level agreement which the government signed with the International Monetary Fund (IMF) to contract US$1.4 billion will boost the economy.
Zambia Tax Platform Alliance Coordinator, Ibrahim Kamara, said the staff-level agreement is important for the country as it will help in restructuring or refinancing Zambia’s debt.
Mr. Kamara said the staff-level agreement will boost investor confidence and lenders will also be in a position to lend because the government will win IMF’s confidence.
Speaking during an orientation training on the national debt justice campaign movement in Lusaka, Mr. Kamara noted that, going forward, it will be easier for government to engage other lenders because of IMF’s endorsement.
“A staff-level agreement will go a long way to renew the confidence of lenders and even commercial banks will be able to start lending to borrowers, hence growing the economy,” he explained.
He said the government must restructure the debts, especially those which are commercial as they have impacted negatively on foreign reserves and contributed to currency depreciation.
And a representative of Debt Justice Campaign, Charles Mulila, said the government must devise ways to grow the economy instead of contracting more debts.
Debt Justice Campaign is an organization that offers alternative poverty reduction strategies as a means to avert debt contraction. Mr. Mulila stated that debt contraction in the previous government has affected women more as they have no means to fend for themselves.
He added that for government to avoid debt contraction, it must harmonise and regularise new opened up gold mines through awarding of contracts and licenses to credible local and foreign investors.
He also urged government to broaden the tax base to the would-be empowered small and medium scale miners whom he said have been neglected for a long time. Mr. Mulila said this is in order for government to generate revenue to avoid debt contraction.
“Averting debt contraction by government can be achieved by empowering women and youths to realise their potential opportunities as a way of sustaining their livelihoods,” he said. In December last year, the government signed a staff-level agreement with the IMF to restructure credit extended facilities for 2022 to 2025.
This is aimed at restoring economic stability and providing the foundation for all-inclusive economic recovery which will see many players getting involved to borrow money from banks at affordable rates.
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