.Dodia

By JAMES KUNDA –

THE Private Sector Development Association (PSDA) has said there is need for Government to audit the use of both Eurobonds that Zambia has issued on the international market, if the country is to boost confidence of international lenders.
PSDA chairperson Yusuf Dodia said that Zambia should account for how the money from the two bonds worth US$1.850 billion has been utilised, to maintain investor confidence that would see the country land a similar facility if need arose.
“It is very important to audit the utilisation of proceeds from the two Eurobonds because these are obligations worth over $1 billion that must be settled concurrently in 2022 and 2023.
Mr Dodia cautioned Government against borrowing mainly for consumption as this would derail the country’s capacity to pay external debts.
Meanwhile, Mr Dodia has said the revocation of Statutory Instrument number 55 of 2013 has led to economic stagnation because local entrepreneurs do not have access to capital for fresh investments.
He said efforts by the Bank of Zambia to stabilise the statutory reserves in view of arresting the Kwacha from further depreciation have not yielded much for Small and Medium Scale Entrepreneurs.
“Zambia currently exports about $8 billion dollars of goods per year, but this money is not coming back to the local commercial banks meaning it is difficult for ordinary people to borrow for business.
Hence, there is a likelihood of economic stagnation because resources that are supposed to recapitalise the economy and accelerate growth are being shipped out of the country,” he said.