ZAMBIA’S EXTERNAL DEBT HAS INCREASED BY 53 PERCENT

ZAMBIA’S EXTERNAL DEBT HAS INCREASED BY 53 PERCENT FROM US$ 1,019.0 MILLION IN 2006 TO US$ 1,557.4 MILLION IN 2009.

MEANWHILE THE PRIVATE AND PARASTATAL DEBT INCREASED AT A MUCH FASTER RATE OF 168 PERCENT OVER THE SAME PERIOD, BRINGING TOTAL EXTERNAL DEBT TO US$ 3,807.8 MILLION IN 2009.

ACCORDING TO MINISTRY OF FINANCE AND NATIONAL PLANNING SECRETARY TO THE TREASURY LIKOLO NDALAMEI OFFICIAL DEVELOPMENT ASSISTANCE, BOTH IN GRANTS AND CONCESSIONAL LOANS, IS A SIGNIFICANT CONTRIBUTOR TO THE IMPLEMENTATION OF ZAMBIA’S DEVELOPMENT PRIORITIES.

MR NDALAMEI HAS EXPLAINED THAT CONSIDERING THE SIGNIFICANCE OF THIS CONTRIBUTION, ZAMBIA DEVELOPED AN AID POLICY AND STRATEGY FRAMEWORK CONSISTENT WITH THE PARIS DECLARATION ON AID EFFECTIVENESS EMPHASIZING THAT

HE SAYS THE FIELD OF DEVELOPMENT COOPERATION IN THE COUNTRY HAS UNDERGONE SIGNIFICANT CHANGES WITH THE INTRODUCTION OF THE AID POLICY AND STRATEGY FOR ZAMBIA IN 2007, COUPLED WITH THE JOINT ASSISTANCE STRATEGY FOR ZAMBIA (JASZ) 2007, AS WELL AS AN INCREASED INTENSITY IN THE USE OF GENERAL BUDGET SUPPORT AND SECTOR BUDGET SUPPORT.

THE SECRETARY TO THE TREASURY HAS POINTED OUT THAT ADDED TO THIS; THERE HAVE BEEN INCREASED CAPACITY BUILDING INITIATIVES THROUGH THE PUBLIC EXPENDITURE MANAGEMENT AND FINANCIAL ACCOUNTABILITY (PEMFA) PROGRAMME TO MANAGE BOTH DOMESTIC AND EXTERNALLY MOBILIZED GOVERNMENT REVENUE.

HE HAS FURTHER DISCLOSED THAT THE LEVEL OF TOTAL DISBURSEMENTS INCREASED FROM US$ 589 MILLION IN 2006 TO US$ 857 MILLION IN 2008, AND REMAINED AT ABOUT THE SAME LEVEL IN 2009, BRINGING TOTAL DISBURSEMENTS OVER THE FOUR YEARS TO US$ 2.97 BILLION

MR. NDALAMEI SAYS THE INCREASE IN DISBURSEMENTS WAS ATTRIBUTED TO INCREASED DONOR CONFIDENCE IN THE GOVERNMENT’S MACRO-ECONOMIC MANAGEMENT, BOTH PRE AND POST HIPC COMPLETION POINT, AND TO IMPROVEMENTS IN POLITICAL AND ECONOMIC GOVERNANCE.

HE HAS ALSO EXPLAINED THAT, COOPERATING PARTNERS WERE RESPONSIVE TO THE GOVERNMENT’S PREFERRED AID MODALITY, WITH BUDGET SUPPORT DISBURSEMENTS INCREASING FROM US$ 136 MILLION IN 2006 TO US$ 244 MILLION IN 2008 BEFORE DECLINING SLIGHTLY TO US$ 238 MILLION IN 2009

MR NDALAMEI SAYS OVER THE FOUR YEARS, BUDGET SUPPORT ACCOUNTED FOR 26 PERCENT, OF THE TOTAL EXTERNAL ASSISTANCE DISBURSED ADDING THAT PROJECT SUPPORT PARTICULARLY FOR INFRASTRUCTURE AND OTHER INVESTMENT PROJECTS, AMOUNTING TO US$ 1.54 BILLION, OR 52 PERCENT, OF TOTAL AID WERE DISBURSED OVER THE FOUR YEARS.

THIS ACCORDING TO A PRESS STATEMENT MADE AVAILABLE BY MINISTRY OF FINANCE AND NATIONAL PLANNING PUBLIC RELATIONS OFFICER CHILESHE KANDETA

published by augustine m sichula