Lusaka, Zambia – Economist Emmanuel Zulu has raised concerns over the recent approval of a $108 million loan by the African Development Bank (AfDB), suggesting it may undermine Zambia’s debt management strategy and its current standing with the International Monetary Fund (IMF).
The loan, which was approved yesterday by the National Assembly of Zambia, is intended to strengthen economic governance and implement public sector reforms. However, Mr. Zulu pointed out that the terms of the loan have shifted from being concessional to commercial, which he believes could have serious implications.
In an interview with Phoenix News monitored by Melo Media, Mr. Zulu highlighted that Zambia had committed to borrowing only on a concessional basis. The shift to a commercial loan, he warned, could exacerbate the country’s already substantial debt burden.
“Contracting more commercial debt will worsen Zambia’s debt situation,” Zulu stated, adding that the country needs to be cautious to avoid fiscal instability. He suggested that the government should explore alternative measures and prioritize consensus-building to prevent further commercial debt accumulation.
Mr. Zulu’s comments come at a time when Zambia is striving to maintain its economic stability and foster sustainable growth. The potential impact of this commercial loan on the nation’s financial health remains a critical point of discussion among policymakers and financial experts.
