Stabilization fund is best to service Eurobonds – Habaazoka

Lubinda Habaazoka

Economist Lubinda Habaazoka has proposed that the best way to service Zambia’s Eurobond debt is through the creation of a stabilization fund.

Dr. Habaazoka says it is this fund that can also help cushion the Country when copper prices are low on the international market besides helping in paying debts and save for future generations.

In an interview with QTV News, Dr. Habaazoka says countries such as Russia, United Arab Emirates, and Iran have established such funds from earnings from their God given natural resources.

Dr. Habaazoka who is also Director at the University of Zambia (UNZA) School of business notes that for Zambia, the source of the stabilization fund can come from the Country’s mining industry.

He states that there is need therefore to move in and ensure that a value chain is done for each and every mining company to ascertain where costs are being bloated.

Dr. Habaazoka notes that once such checks and balances have been put in place, the Zambian government will have ensured that it is collecting enough taxes from the mining industry.

He says these are the revenues that can in turn be going towards the government current expenditure and the stabilization fund.