Moody’s positive debt fall forecast elates HH
By Thandizo Banda
THE latest outlook from Moody’s Ratings which projects that Zambia and Ethiopia will record the largest reductions in government debt in sub-Saharan Africa has elated President Hakainde Hichilema.
State House said Moody’s has also listed Zambia among eight countries in sub-Saharan Africa with a positive outlook.
Chief Communications Specialist Clayson Hamasaka said in a press release yesterday since the outlook was published, Zambia had also reached a staff-level agreement with the International Monetary Fund (IMF) on a new US$1.472 billion Extended Credit Facility, which will support the country’s move from stabilisation to growth.
Hichilema said the projection showed how far the country had come from default in 2020.
“In 2020 Zambia was in default. Today one of the world’s leading ratings agencies says our debt is set to fall further than almost anywhere else in the region. That is the result of hard choices, taken together, and of the patience and sacrifice of the Zambian people. This achievement belongs to them,” he said.
Hichilema said lower debt was the foundation of the Grow Zambia agenda.
“Every kwacha freed from debt is a kwacha we can put to work for Zambians. That is the purpose of the Grow Zambia agenda. To turn stability into jobs, investment and rising incomes in every province,” he said.
Hichilema said government was not complacent as the cost of servicing debt remained high.
“We are not complacent. The cost of servicing our debt remains too high, and that is why we will hold firmly to fiscal discipline under the new programme. We have restored stability. Now we are delivering growth,” he said.
Government would continue to work with the IMF, cooperating partners and investors to ensure that the gains of recent years are felt in the daily lives of all Zambians.
