Zambia's current external debt stands at US $15.5 billion, domestic debt is at K291.7 billion, both treasury bills, government bonds and domestic areas.
Since 2021, when Zambia first defaulted on its external debt payment, the country has never serviced it's external debt obligation.
Put simply, Zambia has not paid anything ever since towards it's external debts up to today.
Beyond the failed debt restructuring of the new dawn administration, the bottom line is, both external and domestic debts have to be dismantled.
HOW?
1. There can be no debt repayment both externally and domestic without 'added' revenue from the mining sector. Zambia's mining sector accounts for 72% of total export earnings.
The new dawn administration must compel mining companies to pay a "bit more taxes." Tax holidays have to be completely removed in the mining sector.
Additionally, new dawn administration must compel all the foreign mining companies to bank their copper sales money locally and not outside the country.
2. Through gold, sugilite and lithium. We repeat our call expressed in a letter written to President Hichilema, that government must declare these 3 metals as state assets through an act of parliament.
The Gold, sugilite and lithium must be mined by Zambia National Service (ZNS) or any SPV, deposited in Bank of Zambia and sold at central bank.
Our calculations indicate this measure can make government earn between US $500 million to US $1.5 billion of new, fresh dollars per year.
3. Agriculture is the future gold of the Zambian economy. With the current erratic rainfall pattern being experienced globally. Government must initiate serious water harvest strategies for farming.
4. Defense forces must be commanded to design and make canals countrywide for farmers. Dams must also be strategically built to harvest rain water.
5. Development of clear farming strategies from ward, constituency to provinces will secure the country food wise and save us the pain of starving amidst abundance.
Silavwe Jackson
President
GPZ.