Catholic Bishops Call for Debt Cancellation as Government Seeks More IMF Loans
In a move that has reignited debate over Zambia’s economic direction, Catholic Bishops have launched a campaign advocating for the cancellation of the country’s external debt. The initiative, aimed at freeing Zambia from its crippling financial obligations, comes at a time when the government is weighing whether to sign onto a new program with the International Monetary Fund (IMF), as the current deal is set to expire in October. With the 2026 elections approaching, Finance Minister Situmbeko Musokotwane has acknowledged that the decision carries both economic and political implications.
The Catholic Church, a vocal proponent of social and economic justice, argues that Zambia’s debt burden is unsustainable and disproportionately affects the poor. At the campaign launch, the bishops emphasized that debt repayments are draining resources that could otherwise support essential services such as healthcare, education, and infrastructure. They urged international creditors to consider writing off Zambia’s debt to enable the country to rebuild its economy and uplift its citizens.
Despite the church’s calls for relief, the government appears to be considering a different path. Musokotwane has confirmed that discussions on a potential new IMF program have yet to begin internally, but a decision will be made well before the current deal’s expiration in October. The government maintains that IMF programs provide critical budgetary support and boost investor confidence, making it easier to access cheaper funding. However, critics warn that these deals often come with stringent conditions, including austerity measures that can squeeze social spending—an especially sensitive issue with elections on the horizon.
Zambia’s existing $1.3 billion IMF deal, signed in 2022, was a crucial step in restructuring the country’s $13 billion public debt. That process is now about 90% complete. Last year, Zambia also received an additional $388 million from the IMF to help mitigate the impact of a historic drought that devastated crops and hydropower generation—an energy source on which the country depends for over 80% of its electricity.
The Catholic Bishops’ call for debt cancellation is not without precedent. In the early 2000s, Zambia benefited from the Highly Indebted Poor Countries (HIPC) initiative, which led to significant debt relief. However, years of reckless borrowing have once again placed the country in a precarious financial position. The government now faces a critical decision: pursue a new IMF deal that reassures investors but could constrain public spending ahead of elections, or seek alternative economic solutions that prioritize debt relief and long-term sustainability.
As Zambia’s leaders deliberate, the debate over the country’s economic future intensifies. Will the government align with the church’s call for sustainable debt solutions, or will it opt for another IMF-backed program? With elections approaching, the stakes have never been higher.
February 10, 2025
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Catholic Bishops Call for Debt Cancellation as Government Seeks More IMF Loans
