Zambia’s Debt Relief Deal “opportunity to reduce cost of living": Jesuit Scholars

JCTR officials urge the Zambian government to “make use of the reduction in debt servicing in the short to medium term to actualize the benefits of the agricultural sector, by increasing budget allocations to the agricultural sector from the current 4.2%.” 

“Allocations should be made towards funds for investment in modern farming techniques, improved irrigation systems, and better-quality seeds and fertilizers,” they say. 

The Jesuit scholars say the investments “can enhance agricultural productivity, leading to increased yields and lower production costs.”

Lower cost of production could decrease the cost of agricultural products hence “positively impacting the cost of living for consumers in addition to improved food security and nutrition,” officials of the Jesuit entity say.

JCTR officials say that while the debt restructuring deal may attract investments for economic growth, “the opening up of the economy and potential upsurge of external investors may also drive economic inequalities.”

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For this reason, the Jesuit scholars say, “It is critical that adherence to labor laws, progressive taxation systems, and tax incentives for local businesses are taken into consideration to allow small and medium enterprises to effectively participate in the market, create more jobs and generate revenue for the country.”

“Public money should never be disjoined from the public good, and financial markets should be underpinned by laws and regulations aimed at ensuring that they truly work for the common good,” they say referencing Pope Francis’ message to participants in the World Bank Group and International Monetary Fund 2021 Spring Meetings.

The Jesuit scholars also call on the public “to remain vigilant in monitoring the debt management landscape even as government implements policies and initiatives that stimulate economic growth.”

“The debt restructuring agreement presents a brief moment of relief towards debt servicing, consequently, transparency and accountability will be key going forward to ensure that the country does not return to this magnitude of debt,” JCTR officials say.

Magdalene Kahiu is a Kenyan journalist with passion in Church communication. She holds a Degree in Social Communications from the Catholic University of Eastern Africa (CUEA). Currently, she works as a journalist for ACI Africa.