Debt restructuring deal holds bright prospects for Zambia’s economy —Chamber of Commerce

The Zambia Chambers of Commerce and Industry (ZACCI) has predicted a reboot of a private sector-driven economy following the recent debt treatment deal clinched by government with its official creditors.

ZACCI, through its president Chabuka Kawesha, believes that the reported development would trigger increased local and foreign investor confidence and positive sentiments in Zambia’s economic roadmap.

Zambia had finally reached an agreement on a comprehensive debt treatment with its Official Creditors under the G20 Common Framework after several years of back and forth.

The agreement is expected to pave the way for the approval by the International Monetary Fund (IMF) Executive Board of the first review of the Fund-supported program in the coming weeks, allowing for the next tranche financing of about US$188 million to be disbursed.

Under the agreed terms, the Official Creditors will provide a debt treatment contingent on Zambia’s debt-carry.

In his reaction to the agreement in a statement on Friday, Kawesha expressed confidence that the remaining steps needed under the deal would no doubt be addressed to the expectations of government and the local investing stakeholders.

Read more: Breaking: Zambia, Creditors finally reach debt treatment deal, paves way for $188 million IMF disbursement

“This will also trigger the right notes for increased investment and actualization of real sustainable industrialization,” he said.

He, therefore, called on the civil service and regulatory agencies, with a matter of urgency, to work on regulatory hurdles that were slowing an economic boom, investment in Research and Development (R&D) as well as rebooting Industrialization in Zambia.

According to Kawesha, multiple regulatory hurdles continued to slow down greenfield investment and slow recapitalisation of brownfield investments.

“Regulators across all sectors are at the centre of ensuring private sector corporate actors, as well as SMEs and MSMEs actors to effectively actualise and implement individual or collective transformative investment pledges.

“Therein can be found some potential income accelerator opportunities and tens-of-thousands of entrepreneurs and secure jobs,” he said.

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