“Zambia’s Economic Revival”
… ZICA offers expert advice on preventing future debts and sustaining economic growth.
By Francis Maingaila
Lusaka, Zambia24 (08-04-2024) -The Zambia Institute for Chartered Accountants (ZICA) has lauded significant strides in debt restructuring, marking a crucial step towards economic rejuvenation.
Yande Mwenya, President of ZICA, briefed journalists, heralding Zambia’s pivotal achievement in debt restructuring after arduous negotiations.
Mwenya stressed that Zambia’s progress in debt restructuring signals a positive trajectory towards economic recovery and sustainable development.
“By prioritizing transparency, accountability, and prudent fiscal management, Zambia is poised to overcome its current challenges and forge a path towards prosperity,” she remarked.
Highlighting that the restructuring covers 75% of the nation’s debt through agreements with official credit committees and other bondholders, Mwenya underscored its role in fostering economic stability and growth.
She commended the government’s commitment to transparency, inclusivity, and accountability under the Public Debt Management Act.
Mwenya expressed confidence that reducing the debt burden will yield tangible benefits, particularly in vital social sectors.
However, she stressed the need for effective communication with citizens about the implications of debt restructuring.
Aligning the budget with long-term loan obligations is crucial for financial stability, she noted, emphasizing careful planning for future bond repayments.
Furthermore, Mwenya emphasized the importance of establishing a sinking fund and mechanisms to prevent future debt crises.
She also underscored the significance of redirecting economic expansion towards profitable sectors and attracting foreign investment.
Legislative measures aimed at tackling illicit financial flows are crucial to fostering transparency and efficient resource utilization, she added.
Despite improvements in the Corruption Perception Index (CPI), corruption remains a challenge in Zambia, Mwenya noted. Continuous efforts to enhance transparency and accountability are essential to combat this issue effectively, she highlighted.
Addressing the challenges posed by the declaration of drought as a national disaster, Mwenya emphasized the severe impacts on agriculture, water, and energy sectors.
Immediate actions include ensuring food supply, importing electricity, implementing energy rationing, and mobilizing farmers for early maize planting through irrigation, she outlined.
Mwenya emphasized sustainable solutions, calling for the enactment of the Climate and Sustainability Bill and adoption of sustainability standards. Collaboration between the government and ZICA is crucial for accountability, monitoring, auditing, and capacity building, she stressed.
She observed the importance of Zambian College of Accountancy Studies (ZCAS), emphasizing compliance with the Accountants Act of 2008.
“Professionalism, ethical conduct, continuous learning, and effective communication with the institute are crucial for navigating these challenges,” she stated.
Media outreach initiatives are crucial to ensure widespread understanding and support for the government’s efforts, she concluded.