Academic Pushes Government to Continue Seeking IMF Bailout

The Head of Business at Copperbelt University’s Lusaka Campus, Collins Mudenda, has urged the government to continue persuading the International Monetary Fund (IMF) to grant a bailout to Zambia. 

Speaking in an interview with ZNBC news, Mr Mudenda said that talks over a possible bailout package must continue if Zambia is to be able to fulfil its various debt obligations.

He also urged lawmakers to approach Zambia’s bilateral partners such as China on the possibility of debt relief measures - up to and including a total write-off. 

The academic said this was the only way of securing a stable cashflow in Zambia while tax collections continue to decline as a result of the Covid-19 pandemic. 

Earlier this week, the IMF clarified that Zambia - along with a few other African nations including Burundi and Zimbabwe - was not in the priority bracket for receiving debt relief.

The Fund’s African Department Director Abebe Selassie explained that Zambia was not included in the initial list of 25 beneficiaries because it is not classified as among the most vulnerable and poorest nations. Only countries with a per capita income of less than US$ 1,175 were eligible to receive relief; Zambia’s per capita income is US$1,430.

Since the IMF’s announcement, Minister of Finance Bwalya Ng’andu has confirmed that Zambia intends to hold further talks with the Fund regarding an adapted economic programme, however no arrangements have yet been clarified.