Zanaco Chief Commercial Officer – CCO Lishala Situmbeko has advised government to show commitment towards its decision to slow down on debt accumulation on both external and domestic debt stating that the proposed administrative measures are extremely critical and we’re flaunted, should have consequences.
Finance Minister Dr Bwalya Ng’andu had on 27 September 2019, during the 2020 budget presentation stated that he will address the challenges of domestic areas and increase the allocation of funds to reduce the stock of domestic areas, use of debt swaps to liquidate part of the outstanding areas and enhance commitment control systems to curb further accumulation.
Situmbeko told the Zambian Business Times – ZBT in an exclusive interview that the measure put across are important and need full support from various ministry’s and government officials if the plan is to be fully implemented.
He said there is need to slow down on debt accumulation especially external debt, which has to be paid by the foreign exchange earned from mining and other exporting entities hence making it difficult when the mining sector is under performing.
Situmbeko further said despite government paying particular attention to servicing external debt which is not a bad idea, domestic debt is another burden that requires special attention as it directly affects ordinary Zambians who in turn struggle to run their business and fail to contribute to the growth of the economy.
“The measures that the minister has put in place are very important and we urge him to work closely with other government wings to ensure they are implemented in full because those measures require commitment and if anyone commits on behalf of government without treasury authority, there must be consequences,” he said.
He further noted the need for fiscal discipline if both domestic and foreign debt is to come down.
Meanwhile, he has welcomed government’s decision to maintain Value Added Tax – VAT and do away with Sales tax and has expressed hope that the introduced administrative measures to strengthen enforcement and efficiency will be effective.
