Following the announcement made by the Minister of Finance and National Planning Dr. Situmbeko Musokotwane that Zambia has reached an agreement with its official creditors under the G20 Common Framework; stakeholders have continued to praise the government.
The deal is meant to restructure more than $6 billion of debt owed to other governments with the most of the money is owed to China.
The Zambia Association of Manufactures (ZAM) states that the debt relief agreement is highly welcomed considering the fact that Zambia defaulted on its debt in 2020.
ZAM President Ashu Sagar states that with this agreement, the allocation to debt service is expected to decline in the 2024 National Budget allowing for funds to be allocated to other areas such as Economic Affairs, Education and Health thus spurring economic growth.
Mr. Sagar says the new agreement is expected to increase investor confidence in the Zambian economy and subsequently increasing the Foreign Direct Investment in priority sectors such as manufacturing which is in line the government’s industrialization agenda.
