Finance minister Margaret Mwanakatwe has told Bloomberg that she is not worried about Zambia’s declining foreign reserves that have fallen to the lowest level in over 10 years.
Speaking in an interview with Bloomberg TV in Washington on Friday Mrs Mwanakatwe said that she was not worried about the declining reserves because the Government has put in place mitigating actions that will improve falling reserves.
The Minister also said that Zambia’s increasing debt is an investment for the future and shouldn’t be a cause for concern.
“In the main it is infrastructure development, Zambia is vast. The opportunity is out there. If I don’t put a road there, how do I harness the potential that is there. Debt, much as it looks high, it’s a debt for the future.”
According to Bloomberg, Zambia’s external debt climbed to $10.05 billion by the end of last year from $8.74 billion a year earlier as the government continued to spend on building programs despite warnings from the International Monetary Fund and ratings companies that the burden is becoming excessive. Zambia, Africa’s second-biggest copper producer, has failed to persuade the IMF to sign off on a package to boost its budget.
— Bloomberg Economics (@economics) April 12, 2019