On The Pulse

26/09/2022

CATHOLIC PRIESTS SPREAK OUT AGAINST BISHOP ALICK BANDA

We the Catholic priests of the Lusaka Archdiocese are alarmed at bishop Alick Banda’s departure from his role as a shepherd of the flock of the Lord. We cannot keep silent any more. We have watched with great pain Bishop Banda anointing himself as a spokesperson for an opposition political party and speaking about anything he thinks will discredit the ruling government. His accusation that the government was behind the stealing of TV sets from Edgar Lungu’s residence and now his recent rants that the government was encouraging homosexuality were all messages lifted up from opposition PF blogs. A bishop should be above partisan politics and look at greater social justice and faith issues.We have tried to whisper to him but he does not listen.

As Catholic clergy, we believe our bishops have a prophetic role to play by denouncing injustice, as was the case with old testament prophets and as did our Lord Jesus Christ. This was beautifully stated in paragraph 1 of the Vatican II’s Pastoral Constitution on the Church in the Modern Word (Gaudium et Spes) promulgated by Pope Paul VI as follows: “The joys and the hopes, the griefs and the anxieties of the men of this age, especially those who are poor or in any way afflicted, these are the joys and hopes, the griefs and anxieties of the followers of Christ. Indeed, nothing genuinely human fails to raise an echo in their hearts.” This entails that the Church and its leadership cannot abandon the matters of social justice, especially matters affecting the poor. But to have a bishop anoint himself as spokesperson for the elite and former ruling party is to abdicate this mandate.

Where was Banda when the PF looted the treasury and got the country into heavy debt? Where was Banda when citizens were mercilessly gassed? Where was Banda when PF carders terrorized innocent citizens? Where was Banda when the police brutally murdered innocent citizens? During all this ordeal, Banda was silent and busy partying with Edgar Lungu. The only bishops who stood with the people are bishops George Lungu and Telesphore Mpundu. Zambia owes these two an undying debt of gratitude.

We strongly believe that Alick Banda is abusing his office of bishop to further personal and partisan interests. What he is doing is contrary to what the Catholic Church teaches about the role of a bishop in the Catholic Church. The Vatican Council II’s Dogmatic Constitution on the Church (Lumen Gentium) states in paragraph 21: “…bishops in an eminent and visible way sustain the roles of Christ Himself as Teacher, Shepherd and High Priest, and that they act in His person.”

This entails that Bishops should mirror Christ in what they do and act as Christ did. They should imitate Christ in holiness as well.
Below, we would like to demonstrate with a few examples, how Alick Banda falls short of what is expected of a Bishop. He is a perfect manifestation of a hypocrite. How he managed to cheat the system and rise to office of bishop is a story for another day.

1.Bishop Alick is a well-known womanizer. He has a string of girlfriends; some are even married. Just a few examples will do. While he served as bishop of Ndola, he had an affair with the maid who worked as the cleaner and cook in the bishop’s house. This is an open secret known by everyone who worked in the Ndola diocese offices. When the law allowed the Charitable organisations to import vehicles duty free, Alick Banda abused this facility by importing duty free vehicles for his girlfriends in Ndola. Again, this is an open secret. ZRA reports are still there to confirm this. Currently, we know that bishop Alick Banda has sexual relations with a Catholic nun from a known local congregation of nuns in Lusaka. This nun is a frequent presence at Banda’s Ibex Hill residence, and she alone has unimpeded access to him, 24/7. Let Alick Banda deny this and we will produce more evidence.

2. Alick Banda is full of hatred. One of the persons he hates most is his predecessor, Bishop Telesphore Mpundu. He openly accuses Mpundu of having defrauded the diocese of funds meant for the Home Based Care Project. He often boasts that he is doing Mpundu a favour by not reporting him to the police for the theft. Banda hates Mpundu so much that the few times Mpundu has been unwell, Banda never visited him, despite being in the same town. What kind of Christian does this? Let Banda tell the Christians when he last invited Mpundu even for a meal. The poor old man Mpundu has been shunted by Banda into a small house in Thornpark.

3. Alick Banda loves power so much. He campaigned hard to be elected President of the Zambia Conference of Catholic Bishops (ZCCB) at the last election. Luckily, his colleagues saw no merit in him and did not elect him as president. This annoyed him so much that he went about complaining and accused his colleague bishops of being uneducated idiots. He often complains that ZCCB was full of uneducated bishops like George Lungu and Ignatius Chama who did not have PhDs like himself.

4. Alick Banda loves attention and pomp. When Mpundu was invited to celebrate thanksgiving mass at state House, Banda was so angry that he had been overlooked. He angrily called Fr Joseph Kang’ombe of Mary Immaculate Parish, who had accompanied bishop Mpundu to State House, to insult him and threaten to remove him from his diocese.

5. Alick Banda lives in opulence and enjoys an extravagant life style. While all the former bishops of the diocese lived in a modesty bishop’s house in Roma, Banda lives in a private House in Ibex Hill. The house has all sorts of security gadgets, adult toys and extravagance is written all over it. It is for this reason that he easily connected with Edgar Lungu because Lungu allowed him easy access to state resources to help him finance his extravagance. Banda is a big beneficiary of Lungu’s corruption. In fact, we are shocked that the ACC and DEC have not moved in to investigate him because after Lungu lost power, he hid some of his money with Banda. To this day, some vehicles from Lungu are still hidden at Banda’s place. What are law enforcement officers doing?

6.Banda is a champion of tribalism. He has cleared the Catholic secretariat (Catholic Church Headquarters in Lusaka) of staff from other dioceses. All key positions are now held by people from just two dioceses, that is, his former diocese of Ndola and his current diocese of Lusaka. The New director of Caritas (Fr Gabriel Mapulanga) is from Ndola diocese; the Pastoral Coordinator (Fr Cornelius Chibamba) is from Ndola diocese; the education secretary in charge of all Catholic schools (Fr Leonard Namuhumba) is from Lusaka diocese; the Liturgical coordinator (Fr. Jonas Phiri) is from Lusaka diocese; the Communications director (Fr Winfred K***a) is from Ndola diocese; the Secretary General of the ZCCB (Fr Francis Mukosa) is from Ndola; and the Human Resource and Finance director (Fr James Chibeza Zulu) is from Lusaka. The same trend is mirrored in the three national seminaries where Catholic priests are trained. The Catholic church has 10 dioceses. Where is the diversity and inclusivity? Where is Alick Banda to condemn this tribalism within his own church? He is the architect of the problem.

7. Banda’s letter on homosexuality does not reflect the position of the Catholic Church, which does not allow discrimination and favours a charitable pastoral approach. No one is excluded from the love of God. In fact, the Catholic Church within Zambia has struggled with this issue and Banda should be honest about it. We challenge Archbishop Banda to tell the nation if there were no incidences of homosexuality at St. Dominic’s Major Seminary in Woodlands a few years ago where, even a priest was sent away, and several seminarians suspended.

8. Banda loves money so much but fails to account for it. While in Ndola, the women’s league once mounted a protest against him for abusing the seminarian’s fund. This is money ordinary Catholics donate for the training of priests. He has continued to do the same in Lusaka. In Lusaka, women raise almost K1millon annually for the training of priests. Ask any of the parishes when they last received a financial statement on the utilization of these funds. Zero. It’s his milking cow, funding his extravagance.

Finally, we would like to call on the Vatican to take interest in what is happening in the Archdiocese of Lusaka. The diocese is poorly run and full of squabbles. It is in wrong hands. We appeal that he be removed and in his place let us be given a more spiritually mature bishop such as bishop George Lungu of Chipata, Valentine Kalumba of Livingstone, Charles Kasonde of Solwezi or even the young man from Monze, bishop Raphael Mweempwa. These are solid spiritually, sober intellectually and live humble and decent lives.

Perhaps even Bishop Benjamin Phiri can do a better job as he is a far decent human being, apart from his occasional misguided rants.

We would like to end with a quote from St Pope John Paul II: “It is Jesus who stirs in you the desire to do something great with your lives, the will to follow an ideal, the refusal to allow yourselves to be ground down by mediocrity, the courage to commit yourselves humbly and patiently to improving yourselves and society, making the world more human and more fraternal.” We equally refuse to be ground down by the mediocrity of bishop Alick Banda and ask the Vatican to investigate and remove him before things get out of hand.

We remain humble servants of the Lord. May Mary Our Mother continue to plead our cause.

24/09/2022

Queen used her lip stick to send secret signal.

By Glamour.

As we look back on the life of Queen Elizabeth II, it's clear that she was a remarkable woman. She was a steadfast leader, a skilled diplomat, and, as it turns out, a very smooth operator in awkward social situations without us even realizing it.

Over her 70-year reign, the queen had to meet, greet, host, and entertain thousands of people, which was probably fun when it's Marilyn Monroe, Lady Gaga, Frank Sinatra, and Barack Obama (all of whom Queen Elizabeth met). But it was potentially a little more trying when it was an overenthusiastic fan at one of her garden parties or a stuffy ambassador boring everyone about their weekend plans with their significant other.

But the queen had a strategy for exactly those kind of moments and it involved…applying her lipstick. Yep, really.

Her former footman, Ian Scott Hunter, who worked with the queen for eight years, let slip her secret code on a special episode of Antiques Roadshow, on board the Royal Yacht Britannia, which was dedicated to “celebrat[ing] the reign and long life of Her Majesty the Queen.”

He revealed that she used her makeup to let her ladies-in-waiting know that she wanted to go. “I believe there’s etiquette that ladies do not make their faces up in public,” the former royal footman explained, “but she had her bag over the side and she would take her lipstick out and put it on with no mirror or anything, and that was a signal to the ladies that she was ready to leave.”

And, it's not the only social cue the Queen had at her disposal when she wanted to move the conversation along. Another royal commentator, Kristen Meinzer, revealed the Queen would swap her handbag from arm to arm to politely convey she wanted to end the chat. "Supposedly if she's standing around at an event and mingling with people and talking, and she switches her handbag from one arm to the other, she's telling her staff she'd like someone to interrupt and end the conversation," Kristen told Newsweek's The Royal Report podcast.

And she had a similar technique for banquets and formal dinners, too. Historian, Hugo Vickers, told People, she'd put her bag on the floor if she wanted to leave. While placing her bag on the table was the Queen's way of issuing a five-minute warning to go. Hugo also added, she'd spin her wedding ring around her finger too to signal her aides she wanted out.

So, next time you're stuck listening to someone drone on and you want rescuing pronto, brief your mates on the Queen's secret signals so they can bail you out. Genius. As for her lipstick, alongside helping her out in a pinch, she had a couple of formulas she swore by.

Credit: Glamour.

23/09/2022

He put me behind bars 15 times - HH

02/05/2022

Government warns PF

01/05/2022

How President Hakainde Hichilema survived Chile 1's guns.

The video below shows HH escape through the roof as thugs led by Chile 1 hunt for him downstairs with guns blazing.

Chile 1 was gunned down by his wife in the early morning of yesterday.

28/04/2022

ZAMBIA AND CONGO DR STEP UP TO LEAD ELECTRIC VEHICLE REVOLUTION IN AFRICA!

By Alexander Nkosi

DRC and Zambia hold more than 70% of the World’s cobalt and copper reserves and yet despite this, the two countries only capture an insignificant proportion of the global battery and Battery Electric Vehicle (BEV) value chain. There is a huge opportunity for a partnership to support value chains in copper and cobalt which will see the two countries earn billions of dollars. In line with this, Congo DR President will soon visit Zambia and the two countries will sign agreements that will facilitate development of a Battery Electric Vehicle (BEV) and Renewable Energy Value Chain.

The global electric vehicle market is anticipated to grow from $287.36 billion in 2021 to $1.3 trillion in 2028. Copper is a key component used in electric motors, batteries, wiring and in charging stations. The demand for copper due to electric vehicles is expected to increase rapidly by 2028.

There is a strong driving force at the centre of this energy transition. The acceleration towards lowering carbon output through alternative energy sources has become a top priority around the world, particularly in the transportation sector. Greater use of electric vehicles and expansion of renewable energy capacity to cut noxious emissions will mean accelerating demand growth for copper in coming years.

According to Rueters, key world leaders are driving this energy transition: Chinese President Xi Jinping, pledged to steer the country to "carbon neutrality" by 2060. In China, the world's biggest auto market, the goal is for electric vehicles to make up 50% of all new car sales by 2035. President Joe Biden pledged $2 trillion to help cut emissions. The European Union too is aiming for net-zero emissions by 2050.

28/04/2022

PF THINK and SPEAK

28/04/2022

PF REJECTS NKOMBO's APOLOGIZE AND DEMANDS THAT HE RESIGNS

By Sikaile Sikaile

Dear, Mr. Chilangwa, and your colleagues in criminal activities, did any one of you apologize during your kangaroo Governance? Please keep frequenting police stations for now before going to prisons. Nkombo, has apologized to the Zambian people that voted for his government because he realized that human beings put him there unlike under your brutal regime were you behaved like you are above Jesus Christ and there's no need for him to resign.

All we want as citizens are humble and listening leaders who respect voters not the arrogance we witnessed the last seven years.

You called us disgruntled citizens, stole money for the less privileged citizens, killed citizens,you told us to go and urinate in the Kariba dam to end loadsheding, you gassed the nation, procured expired drugs and condoms, allowed tribalism and thugs to terrorise Zambians and you never apologized.

Stop scratching our fresh wounds ba Nickson Chilangwa, please allow us to heal properly.

SCS

28/04/2022

Lusaka comes to a standstill as HH tours

28/04/2022

Former Education PS nabbed

22/04/2022

JAY MOONO HAMZ

Zambian youth accepts HH's challenge, shows off his own herd.

21/04/2022

ADDRESSING KCM AND MOPANI ISSUES KEY TO RESUSCITATING ECONOMIC ACTIVITIES ON THE COPPERBELT PROVINCE

By Alexander Nkosi

Economic activities on the Copperbelt province have for a long time revolved around mining. If mining goes down, other economic activities are equally negatively affected. This is why it is important to find a quick solution to problems surrounding KCM and Mopani. We have huge debt and capital requirements surrounding Mopani and KCM is embroiled in a legal battle which may drag on.

If we allow the KCM issue to drag on, the economic situation gets worse and we lose out a lot of potential revenue. How do we create jobs and economic opportunities for youths on the Copperbelt under such circumstances. This is why speedy resolution of this issue is key. Addressing these issues on the Copperbelt is a key part of economic recovery. I'm happy that Milingo resigned from his position as Liquidator because it gives government an opportunity to relook at the KCM issue and find quick ways of addressing it amicably.

Once we get the two mines fully operational, we need to vigorously promote small scale mining in Copperbelt rural and diversification to other sectors such as manufacturing and agriculture. One industry should give birth to other industries so that there is continuity.

20/04/2022

KCM money was being looted to PF through Milingo. Who allowed such an extravagant contract?

18/04/2022

Readers' responses from Bishop Alick Banda's statement. (Attached below)

Reader 1

What I don't understand is attaching partisanship to Government projects. Personally, I don't know of a Colonial project, UNIP project, MMD project, PF project or UPND project. I just know about Government projects funded by Tax payers and donors in some cases. Political parties in themselves have never funded national projects. Let's learn to depoliticise development projects. This is a huge cancer in Zambia and parts of Africa. People want to get credit for simply doing their work. That's wrong.

Reader 2

My submission on this matter is that we should view this matter in context.. There is nothing wrong with continuing on the good that was started just like there is nothing wrong with highlighting flaws that have exacerbated the high debt levels in the country. Good Governance provides for proper accountability. The process of accountability may reveal both flaws and scores. So if flaws are highlighted, we should not ignore them ,but pick lessons and see how best we can improve going forward.

Reader 3

A bishop who cannot understand that governance is a relay leaves much to be desired. No one individual or political party owns the projects of a country or government.
The owners are the people of Zambia in the case of our country& so ba bishop stop showing your ignorance in terms of governance if at all you uttered such sentiments.

Reader 4

But how does he expect the Nation to develop if the projects are abandoned simply because they were initiated by the PF government? Every party that forms government has the responsibility of completing the projects initiated by the outgoing government. We only change government sir not the country. Zambia shall remain One, we refuse to be divided.

Reader 5

Does he want government to demolish the projects? The issue is that these are good projects but the costing and financing was done wrongly. We could have spent less on most of them and opted for PPPs were possible.

Reader 6

What he wants is to paint a picture that government is fighting the Catholic Church. Government must ignore him.

Credit: Kalemba

18/04/2022

Grassroots Media inciting Armed Forces

16/04/2022

WORLD BANK URGES ZAMBIA AND OTHER RESOURCE-RICH COUNTRIES TO STEP UP VALUE ADDITION- WE HAVE ALREADY TAKEN IMPORTANT STEPS

By Alexander Nkosi

According to Zambia Daily Mail, World Bank Africa chief economist Albert Zeufack has urged Zambia and other natural resource-rich countries to seize opportunities arising from the Russia-Ukraine conflict by increasing value addition to raw materials before exporting so as to create jobs and increase incomes. He said Russia’s invasion of Ukraine has led to an increase international prices of commodities, particularly food staples, fertiliser, oil and gas.

How can Zambia increase value addition? By creating a conducive environment for the private sector to invest in value addition. We need to attract locals to invest in this as well as foreign firms to partner with locals in joint ventures. What major challenges is the private sector facing? Some of the major challenges include high interest rates and high cost of production.

1) High interest rates: How do we lower interest rates? Through reducing government domestic borrowing. How do we reduce government domestic borrowing? Through debt restructuring to release funds from debt service, thereby reducing pressure for borrowing.

2) High cost of production: One of the key factors driving the cost of production up is weak kwacha against the dollar. The cost of importing machinery and other inputs required to step up value addition is very high. Debt restructuring will reduce the amount we spend on servicing foreign debt (we pay in dollars).

This coupled with attracting capital inflow will strengthen kwacha and reduce the cost of machinery and other key inputs required to step up value addition.

In conclusion creating an enabling economic environment is key to promoting value addition. So far government has made progress towards securing the IMF deal key for destructuring with Western creditors, particularly the eurobonds which is complex due to the large numbers of investers involved. This coupled with restructuring of Chinese debt is key to creating an enabling environment that will promote value addition. It is also key to attracting joint ventures which will help boost capital and branding needed to pe*****te international markets.

Is Zambia on track? Yes, however success in value addition will depend on how we utilise the breathing space we get from debts restructuring. Apart from addressing macroeconomic fundamentals, the President is also actively engaging the private sector as seen from the meetings held at state house. This dialogue is important.

16/04/2022

PF HYPOCRISY

He rested on his 3rd day in office...by going to Mfuwe to booze and play pool.

15/04/2022

15/04/2022

Ba Smart Eagle ati bwa? Why muli ziii lelo?

15/04/2022

BA PF, HOWZ LUKUTU AND KATIMBA WARD AND MONGU MAYORAL ELECTIONS? REBRANDING ATI BWANJI?

14/04/2022

What really is this issue of the President staying at Nkwazi House all about? What is the biggest matter here other than the temporary inconvenience the presidential motorcade causes to other motorists during his trips to and fro state house? there is nothing else to insist why the head of state must stay at Nkwazi House.

For the record, this president has;

1. Refused to get a salary for being President.
2. He has refused to buy a new limousine befitting a new president.
3. He has used public transport to a national event like the UNGA in New York.
4. He returns back his imprest untouched whenever he travels out.
5. God knows what else he has sacrificed which is entitled to him as president.

He has insisted that he is focussing on serving the people not himself. So, if he added to that list by refusing to occupy Nkwazi House, what is really the matter?

In any case, HH is steps ahead especially where his security is concerned. If the community house is more secure than the Nkwazi House then he is safer and better off at his house.

Why have we put so much focus on a house rather than what he is doing to change the lives of Zambians? Did you have any plans for him at Nkwazi House? Well, like I said he is ten steps ahead of you.

Perhaps one of the opposition leaders could be rented in Nkwazi House. The man is safe. Allow him to focus on working.

Malichi.2022.

13/04/2022

Response to Emmanuel Mwamba

By Richard Waga

Your tribal supremacy nature is showing, through your naked hypocrisy. You are the most insincere, deceptive and selfish politician I know for writing this garbage.

Contrary to the crap you have written, you know very well that PF has literally been falsely accusing southerners of genocide? How many false stories did ZNBC carry to that effect? How many times did ZNBC call HH a satanist? Remember Bantustans by your former friends at the post newspaper? Remember how tonga youths were being rounded up by police for fake sabotage charges? Remember how the state-run news paper ran a headline called "genocide in namwala" over nothing that had to do with any ethnic attack? Remember how PF leaders openly told voters that Tongas were bad, selfish or tribal just to incite a vote against a region and not an individual?

Look at your insincere death count of Kungo and others? Very disingenuous and stupid. We can give you name after name of people PF murdered, which includes even fellow PF members, without any justice that Kungo's family is being accorded right now.

The fact that you can't admit that PF murdered a lot of young people and exploited vulnerable youths as militia, speaks to how uncompassionate you are over PF atrocities.

PF has no regrets for how they treated HH, no regret for the gas attacks they coordinated or failed to investigate, no regrets for shrinking our economy, no regrets for polarisation, no regrets for arming the youths against Zambians, no regrets for all the murders sponsored by thier party. This explains how hateful and divisive PF are.

If you are going to be in denial of the facts about evil and divisiveness that PF perpetrated. Then you should stay away from leadership. Thank God you were shipped off to other countries during PF reign. You are incapable of speaking for the poor, because you are denying them the simplest form of justice called, TRUTH.

13/04/2022

*Richard Waga responds:*

Response to Emmanuel Mwamba

Your tribal supremacy nature is showing, through your naked hypocrisy. You are the most insincere, deceptive and selfish politician I know for writing this garbage.

Contrary to the crap you have written, you know very well that PF has literally been falsely accusing southerners of genocide? How many false stories did ZNBC carry to that effect? How many times did ZNBC call HH a satanist? Remember Bantustans by your former friends at the post newspaper? Remember how tonga youths were being rounded up by police for fake sabotage charges? Remember how the state-run news paper ran a headline called "genocide in namwala" over nothing that had to do with any ethnic attack? Remember how PF leaders openly told voters that Tongas were bad, selfish or tribal just to incite a vote against a region and not an individual?

Look at your insincere death count of Kungo and others? Very disingenuous and stupid. We can give you name after name of people PF murdered, which includes even fellow PF members, without any justice that Kungo's family is being accorded right now.

The fact that you can't admit that PF murdered a lot of young people and exploited vulnerable youths as militia, speaks to how uncompassionate you are over PF atrocities.

PF has no regrets for how they treated HH, no regret for the gas attacks they coordinated or failed to investigate, no regrets for shrinking our economy, no regrets for polarisation, no regrets for arming the youths against Zambians, no regrets for all the murders sponsored by thier party. This explains how hateful and divisive PF are.

If you are going to be in denial of the facts about evil and divisiveness that PF perpetrated. Then you should stay away from leadership. Thank God you were shipped off to other countries during PF reign. You are incapable of speaking for the poor, because you are denying them the simplest form of justice called, TRUTH.

13/04/2022

Seeds of Discord, Seeds of Genocide

By Amb. Emmanuel Mwamba

Genocide occurs because institutions and a compliant media participate in the fanning of flames of anger, bitterness and divisions against a group of people.

This is what a documentary, shockingly, shown on ZNBC , a public broadcaster, and circulated and aired on private media like Prime TV and others, is doing.

The documentary script is dangerous, makes unfounded allegations against the Patriotic Front Government and former President Edgar Lungu, and it is scripted to wake anger against Lungu and all those that served in his government.

Sadly, the documentary relies and exploits heavily, the images of the foundation of the treason case and the narration that was made by the now First Lady, when President Hakainde Hichilema was arrested and the manner in which the arrest was done, to cast broad negative aspersions against former leaders and members of the Patriotic Front government.

If anyone wishes to investigate the entire episode of how that charge was handled, and abusers brought to book, a proper legal process can be set in motion, than conducting a one-sided public trial in a court of public opinion, capable of causing and inciting a lynching against former President Edgar Lungu and others.

The documentary also abuses the images of the late President Rupiah Banda, cataloguing how he was allegedly extensively mistreated by the Patriotic Front government led by President Michael Sata.

Does someone want a group of people to rise against another? Is there no rational gate-keeper who could have applied sense before such an inflammatory documentary was approved and aired on national television?

Do people remember that Jackson Kungo and many other persons aligned to Patriotic Front were also victims of political violence?

Does ZNBC Management know their sacred public role? Are we back to "Stand Up for Zambia" type of dangerous documentaries?

National unity is an on-going national-building project but we must remind ourselves, that it is quickly lost by programmes like the documentary in question.

12/04/2022

Fitch see disagreements with private creditors pushing Zambia IMF deal to 2023 as it keeps restricted default rating.

April 12, 2022

Economy Fitch see disagreements with private creditors pushing Zambia IMF deal to 2023...

Rating agency Fitch has warned that disagreements and prolonged negotiations with some official and private creditors over Zambia’s debt might push the eventual IMF deal into 2023.

It says the timelines issued by the Zambian government for the final IMF approval within first half of 2022 is optimistic.

It says Zambia has just conducted an IMF/World Bank Debt Sustainability Analysis (DSA) which will be the basis of discussions within the creditor committee.

The rating agency added that the outcome of the creditor committee will be enshrined in a memo of understanding (MOU) outlining a proposed debt treatment.

“Zambia will then approach its private creditors to negotiate debt treatment on comparable terms. The government’s announced timeline anticipates the formation of the creditor committee, agreement with private creditors, and final IMF Board approval of the ECF all within 1H22. Fitch believes that this timeline is optimistic,” it said in a note to investors.

It stated that disagreements among official creditors or prolonged negotiations with private creditors could push the date of an eventual agreement back into first half of 2022 or 2023.

“Fitch believes that a sizable debt treatment will be necessary to bring Zambia’s debt to a level deemed sustainable by the IMF and Zambia’s creditors. Total public sector stood at 108% of GDP at end-2021 and we expect it to fall below 100% by 2023, as Zambia narrows its primary deficit. However, we forecast debt to increase to just under 500% of government revenue in 2022, above the ‘B’/’C’/’D’ median of 328%.Of this amount, USD14.7 billion (59% of GDP) is external debt,” it said.

It says, “Eurobonds account for USD3 billion of Zambia’s debt, a high percentage of debt compared to other countries going through CF restructuring. The possibility of Eurobond holders rejecting the MOU’s terms brings risks to the timeline. Zambia has an additional USD4 billion in contracted but undisbursed debt, which is not included in the debt stock. Fitch expects about half of this contracted debt to be negotiated away.”
The ‘CCC’ rating reflects that the government has continued to service its local-currency debt and has not announced any plans to restructure domestic debt as part of the CF.

Domestic banks and other institutions hold the majority of outstanding domestic debt; although the stock of non-resident investment increased in 2020 and 2021 and is now 28% of the total.

A domestic debt restructuring could create additional liabilities to the government, making it counterproductive.
However, the domestic debt stock is large at ZMW197 billion (48% of GDP). The size of the necessary overall debt treatment, as well as the size of the necessary fiscal adjustment, mean that sizable risks to domestic debt will persist.

And Fitch Ratings has affirmed Zambia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘RD’ and has also affirmed the Long-Term Local-Currency (LTLC) IDR at ‘CCC’.

“The ‘RD’ rating reflects that Zambia has not serviced the bulk of its outstanding external debt since failing to make a Eurobond interest payment in October 2020. Subsequently, the government announced that it would stop servicing all of its external debt, excluding some priority project loans, and applied for debt relief under the G20 Common Framework (CF). In December 2021, the government reached staff-level agreement on an IMF programme, which clears the way for convening of an official bilateral creditor committee to discuss potential debt treatments.”

It says the affirmation of Zambia’s ‘CCC’ LTLC IDR reflects that the government continues to service its local-currency debt.

And on the foreign reserves, Fifth says a combination of higher copper export receipts and financial account inflows have improved Zambia’s international reserves position.

“We forecast reserves to reach USD2.9 billion, or 3.6 months of current external payments (CXP) at end-2022, up from 3.4 months of CXP at end-2020. If the IMF Board approves the ECF, disbursements from the IMF and other multilateral lenders would further bolster reserves.”

“However, higher import prices will contribute to a narrowing of the current account surplus in 2022 and the eventual resumption of debt servicing will contribute to falling reserves in 2023.”

Fitch expects real GDP growth of 3.3% in 2021 and expect medium-term growth of approximately 3%.

“Inflationary pressures will increase along with high global commodity prices, as the government has ended its explicit fuel subsidy as part of its IMF programme. However, fuel prices are still regulated by the government and the government could delay hiking fuel prices, with resultant losses falling on its balance sheet.”

It says the government will also face higher costs for its fertiliser subsidies through the Farmer Income Support Programme.

“The need to tighten monetary policy would put additional pressure on domestic government borrowing. The government’s increased call on domestic debt markets have crowded out private sector credit, which we forecast to remain in negative”.