Group speaks on embracing home- grown financing solutions to tackle Zambia’s debt


The Advocates for National Development and Democracy (ANDD) has called for mining-led revenue generation amidst the debt restructuring efforts.

Commending government for the over US$3 billion Eurobond debt restructuring achievement, organisation Executive Director, Samuel Banda, noted the need to open up the country’s mining sector to full capacity.

Banda in a statement issued in Lusaka on Wednesday, said the debt burden should not be the narrative going forward.

He stated that Zambia was immensely endowed with so many mineral resources such as gold, copper, sugilite and emeralds, among many others.

“We feel this development amidst the country’s soaring debt, is the way to go, considering the dire economic crisis the country is currently faced with,” Banda said

He noted the need to start dealing with sustainable debt servicing and revenue generation to support other key productive sectors.

Banda identified the sectors in need of support as agriculture and manufacturing, to promote food security and boost export trading volumes.

“For example, 10 tipper trucks full of sugilite are capable of paying off the country’s entire debt without having to go on the loan market or break the sweat to enter into debt negotiation with borrowers,” he said.

Banda noted that Zambia had home-grown solutions to many of its socio-economic challenges and only required a strong political will, commitment, patriotism and hard work to economically prosper.

He said apart from being a mining-dependent country, Zambia’s debt required a viable sector that spoke to the debt demands that are proportionate to the solution.

“We, therefore, hope that after opening up Mopani, government will soon open up Kansenseli Gold mine, invest in Sugilite mining exploration, finalize all the legal pending KCM-VEDANTA issues,” Banda stated.

Read More: ‘Economic recovery back on track,’ Hichilema says as Zambia, bondholders agree to restructure $3 billion eurobond debt

He called for the development of other mining industries which had been discovered to promote viable mining that would generate revenue not only to service debt but also to fund the country’s coffers for other socio-economic activities.

Banda said there was need to utilize the current huge global demand of minerals especially copper, invest more in mining development, meet global market demand and invest the profits into building local industries.

“We believe industrialization is key to developing our country, increasing the tax revenue base,creating employment and opportunities for our youths ultimately enhancing our gross domestic product,” he stated

Banda proposed that government going forward should develop a proactive approach to debt restructuring devoid of new debt acquisition to avoid making one step forward and ten steps backwards.

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