Zambia Not in Debt Crisis-Habazoka

Economics Association of Zambia (EAZ) president Lubinda Habazoka has stuck to his guns that Zambia is not in a debt crisis.

And Habazoka has also wondered why when he takes positions he is either accused of pro and anti-government depending on his views.

Habazoka said there was nothing sinister about what government was doing as regards the debt situation in the country.

He said that government was meeting its routine obligations according to the schedule.

“I have heard stories that no ‘we are in a crisis’ and when I tell people that there is no crisis but yes our debt is very high, they start saying I have been bought. When I was saying ‘don’t get loans’, people were saying ‘you are in the opposition’ so I don’t know now where I stand. I am standing in the middle,” he said.

“Now government is able to meet its obligations. Our laws are very clear, when government gets revenue, the first thing you look at is where you are supposed to pay. So we are paying now, civil servants are getting their salaries on time, government is meeting its obligations. Yes, there are challenges with contractors and what not but that just tells you that that’s not the priority of government. The priority is debt service, salaries and other government expenditure.”

He said, “When you look at our credit rating, it was recently downgraded. Why? It is because we are able to meet our obligations now but there is concern that we will be unable to pay the Eurobonds which are going to fall due in the next five years, because those are bullet payments. So the solution to the problem is to restructure and refinance the debt.”

The outspoken Habazoka also aired his views on the sinking fund.


“I was for a sinking fund years ago but now I am against a sinking fund because time has passed for us to have enough resources in a sinking fund. We have a lot of projects that are competing for government resources…what government should do is refinance the Eurobond. Get other loans that are conventional loans which we are going to start paying interest and principle over time,” he said.

“For example, after 25 years, we are able to service debt. What is the advantage of that? The amount of money that we are spending monthly on servicing all our debt on average is going to reduce because instead of paying that amount in a short period of time, the same loan, you have increased the tenure therefore increasing the repayment period. We can actually borrow more because now we are able to pay the loan.”

He also arrowed his criticism at the Africa Confidential Report that has been crude in their rating of African countries.

“A brief check on their websites has concluded that they have no article on any African country that is positive. Theirs is to paint a gloomy picture about Africa therefore making potential investors become sceptical,” he said.


“Africans continue glorifying their reports denting our image making it even difficult for ourselves on the international stage.”





  1. Frank Bwalya

    Mr Habazoka if the billions of dollars Zambia is owing, most of it un accounted for and without even a pay plan is not a crisis, what is it then?? It’s evident that you are already using your position to lobby for a govt position.. Don’t follow the path your lozi colleague took who used to same platform to stand for elections in mongu and ended up nowhere. Be honest..

  2. BaLazo

    You should be ashamed, our fathers were less educated but brought us together and developed the nation. What we have now is industrial scale thuggery. How do you buy 50 trucks without a loan or build a chain of mansions without a loan as a civil servant. If it is not money laundering and tax evasion then what is it?

  3. ndamwumfwa maisa

    Ask him for sure

  4. menomeno

    The truth will set u free .we a not fools

  5. Starboy

    Does your sinking know this?
    Zambia’s debts;
    Kafulafuta dam projects $449 million
    Levy Mwanawasa hospital expansion $90 million
    Kafubu water project $104 million
    Lusaka sanitary project 130 million
    Mbala nakonde road $180 million
    Heroes stadium $94 million
    Security wings housing project $275 million
    Kenneth Kaunda airport $360. Million
    Ndola airport $400. Million
    Lusaka decongestion $286 million
    Topstar deal & communication towers $280 million
    Copperbelt roads C400 $418 million
    Chipata serenje rail line $2.3 billion
    Mongu kalabo road $287 million
    2000 military houses $157 million
    Mansa luwingu road $242 million
    Sum up this and see if you continue talking like that inactive even your big head will be bigger than your whole body

    • Kampeni

      Thank you Starboy, for telling us about the works that are being done by the PF. All the projects that you have mentioned are vital to the development of our country.
      Now, What is your complaint?

    • HOMMIE 24

      star boy are these figures correct? this goverment must be out of its mind

    • Pj

      Mr Hans, r u in Zambia?

  6. Mr. K

    Habazoka. Jjjjjjjjjjkkkklkllllnmmmmmkiio tell them they will not hear you these day dreamers the have been employed by doom sayers for their personal gain

  7. King cool

    Star boy ,you work for the ministry of finance department. Continue shading more lights. I hope so .

  8. HOMMIE 24

    he said we might not be able to pay the Eurobond that wil fall in the next five years this crisis at its highest levils

  9. Starboy

    Guys dig deeper and find out if it’s a lie, that’s when government will open up and know that we’re watching them through telescopes from Pluto to the deep tunnel under state house. Ask any one u know about those figures they will agree with me

  10. Frank Bwalya

    The figures listed by Star boy are very correct and we thank him for that. So what is Habazoka telling the Zambians other than championing his political agenda?? These are the people President Trump term as “Dull Professors..”

  11. Golden

    All who have worked Chinese know that they have a crooked nature,they are like snakes. So as much as we need them, Zambia and Africa must be careful otherwise the trap is before us…..modern slavery!

  12. jak

    mr stayboy u are correct they
    are running out of truth wet soon

  13. Shaka

    Know which side of your bread is buttered, most of you are opportunists.
    We are peaceful sufferers.

  14. LEGEND X

    mmmmh No Debt Crisis…
    then are we being taxed in almost everything we do even for being a pupil
    why are we taxed for using the internet when pupils have to resource
    please sir clarify your points and make them valid dont mislead the people of the country..
    you are saying teachers are being paid on time but are they finishing the syllabus on time.
    we dont want you to tell us that just promise the people of zambia that you are employing teachers that will teach a pupil to become a good leader…

  15. Eunice

    Our leaders are just a waste of time. They are destroying our country in our face. Don’t forget than we are all affected by this nonsense worse we are destroying our children’s future. This has to stop. To all my fellow Zambian youths, let’s take a stand and make things right. We can just sit and talk from the back bench, these people need us for the same positions they are using to destroy this country.

  16. Gift

    Comments by Habazooka are not only shocking they leave you to shudder what Zambia’s future will be like if this is a Head of the Business School at UNZA teaching Economics to young people. The guy is simply empty, misdirected and simply pushing a personal agenda for government favour at the expense of reality. If he knew what he is talking about and surely as a so called economist, his basic argument should have given the figures on Zambia’s debt position, the amounts due for repayment and Zambia’s revenues and show that they will meet maturing debt. The truth is that they do not have sufficient funds to meet maturing debt and misguided people like Habazooka who don’t know much or willfully choose to mislead the public should not be tolerated. ECZ, if a serious body, should table this and examine facts and weigh whether their inexperienced and unhinged president was on firm ground when he made such claims…

  17. Malama Golden

    The taxes on every side of poor Zambians are pure consequences of selling our birth rights through loans….what we call national projects are controlled by Chinese like Topstar. Mark my words, soon what we call Zambian asserts like zesco will be controlled by Chinese directors too in the name of blind partnership and developmental loans. Soon a chinese will be the heard of an organization which will bring zesco and a Chinese company together. Selling Zesco blindly like Znbc in Topstar deal. Loans without putting the interests of your nation and its citizens is bad

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