And CTPD is further urging the creation for a separate department to manage the sinking fund currently overseen by the Ministry of Finance.
CTPD researcher Bright Chizonde said that in the medium term, the country should engage with the International Monetary Fund (IMF) to develop a credible borrowing plan and enhance the economic recovery program.
“In order to weather the storm of the rising public debt, Zambia should restructure its debt in order to mitigate the depletion of foreign reserves, reduce the projected rise in inflation, control the depreciation of the kwacha, reduce interest rates and stimulate more growth,” Chizonde said at the launch of the debt study in Lusaka today.
On the sinking funds, which periodically sets aside money for the gradual repayment of debts, figures show that it currently stands at over US$10 million.
Chizonde said with improved accountability and transparency, the figure could be higher to help Zambia avoid a debt crisis.
“There is urgent need to free up resources for social service provision towards health, education and social security,” Chizonde said.