Zambia’s Economic Recovery Through Debt Restructuring

3
Zambia's Economic Recovery Through Debt Restructuring
Zambia's Economic Recovery Through Debt Restructuring

Africa-Press – Zambia. In a recent address at the District Development Coordinating Committee meeting, Kabwe District Commissioner Mr Lennox Shimwambwa Jr. reflected on the significant progress Zambia has made over the past four years under the stewardship of President Hakainde Hichilema, following the country’s unprecedented economic challenges, including a debt default in 2020. This marked Zambia as the first African nation to default, unable as it was to meet its coupon payment, causing a nationwide standstill.

Despite the dire financial situation, Mr Shimwambwa acknowledged that borrowing continued to fund essential resources like fuel and medicines, leading to an artificial economic state. “It was easy to burn money,” he noted, emphasizing how the influx of easy cash obscured deeper financial issues. However, as Zambia embarks on debt restructuring, with 92% of its debt now restructured, the outlook is beginning to improve.

Reflecting on the failures of 2020, the District Commissioner highlighted that the country could not conduct its constitutionally mandated census due to financial constraints. The census, a vital tool for equitable resource distribution, was successfully carried out by the current government under President Hakainde Hichilema in 2022, allowing for accurate demographic data such as Kabwe’s population of 300,000 essential for planning and development.

The constitutional requirement for delimitation, a process necessary for fair electoral representation is now being emphasized again. He stated that, like the census, delimitation should not be postponed, as it is crucial for addressing the needs of various wards, including under-resourced areas like Chinyanja and Bwacha in the District.

In recent budgetary developments, an impressive 82% of Zambia’s budget is now financed locally, marking a significant shift from the previous reliance on international aid. The earlier breakdown of the budget indicated a stark contrast where only 10% was allocated to social sector needs, such as education and health. With the current focus, more resources are being channelled into these critical areas, leading to mass recruitment and improved public services.

Today, he said, healthcare facilities in Kabwe District, such as the Central Hospital, are witnessing vital improvements, with new medical equipment like dialysis machines and CT scanners coming online. An oxygen plant has also been established, facilitating better patient care.

In terms of education,the District Commissioner emphasized the importance of access to schooling as the most effective means of reducing poverty. Initiatives are now in place to support all levels of education, with investments in skills development programs aimed at providing vocational training opportunities through the Constituency Development Fund CDF.

With these transformative efforts, Zambia is set on a path toward recovery and progress, fostering a brighter future for its citizens.

For More News And Analysis About Zambia Follow Africa-Press

LEAVE A REPLY

Please enter your comment!
Please enter your name here