A Lusaka based Economist has noted that Zambia’s debt restructuring has helped reduce pressure despite the country still facing challenges in expanding the economy.
Speaking in an interview with Lusaka star, Yusuf Dodia said despite debt restructuring the economy is still not growing because Zambia depends solely on copper and foreign investors.
“Despite the Government seeking help from International Monetary Fund to restructure the debt, the economy won’t be stabilized seeing that we are dependant on foreign investors,”Dodia said.
He urged the Government to utilize the resources that the country has in order to boost and stabilize the economy.
Meanwhile, a Financial analyst, Trevor Hambayi said,debt restructuring should not be mistaken for economic recovery as it is simply a step towards creating stability in the economy.
“Debt restructuring is not a sign of economic recovery it is a process
to create macroeconomic stability for recovery,” Hambayi said.
He noted that real recovery is only seen when key indicators improve such as GDP growth, stable or reduced inflation or lower interest rates.
He added that these factors show whether the economy is truly improving or not.
Hambayi further explained that debt restructuring can help improve investor confidence, especially when macroeconomic condition such as exchange rates become stable and encourages investment.