High Debt Hurts Women – CUTS

Zambia’s debt levels have become notorious worldwide. Since the PF came to office in 2011 external debt has risen from around US$2 billion to over US$12 billion. When the government missed a deadline to pay a K950 million ($42.5 million) interest payment due last year it made international headlines. Earlier this year it failed to pay K1.2 billion ($56.1 million) in interest on another bond.   

According to the opposition the high debt levels are unsustainable and the source of many problems. Repayments and debt servicing leave little government budget left for paying public sector workers or investing in service delivery such as healthcare and education. The negative impact on the kwacha has also caused problems for businesses leading to increased unemployment.  

According to a paper entitled ‘Debt and its Effect on Women and Children’ released by Cuts International Zambia the high debt burden has also created additional problems for women, potentially undermining the Government’s ability to meet stated commitments to gender equality and the promotion of women and girls’ rights.  

This is because the costs of debt servicing fall more heavily on women, while the funds borrowed are rarely spent on projects that benefit them directly, the organization claims. It is also because they often work in the informal economy and are more likely to be caregivers. 

“The reduced expenditures in social sectors impact on women and girls who are the majority users of these services due to the existing inequalities that determine gender roles and responsibilities, while devaluing their contribution,” Cuts International Programmes Officer, Jane Zulu explained when addressing media this week.