“DON’T LET THE $6.5 BILLION FOOL YOU” – TEMBO
Former Patriots for Economic Progress (PeP) president and aspiring Roma Constituency independent Member of Parliament Sean Tembo has challenged the Government’s celebration of Zambia’s US$6.5 billion foreign reserves, arguing that the figure does not tell the full story of the country’s financial health.
Tembo says while Government has increased the country’s foreign reserves from about US$3 billion in 2021 to US$6.5 billion, it has also accumulated massive debt and unpaid bills that should not be ignored.
According to him, domestic arrears money Government owes local businesses for goods and services already supplied have risen from about K18 billion in 2021 to approximately K96 billion by May 2026.
He further claims that Government borrowing through Treasury Bills and Government bonds has increased from K78 billion to K259 billion, while external debt has grown from US$11.5 billion to around US$16 billion during the same period.
Tembo estimates that Government has added more than US$18 billion in borrowing and unpaid obligations over the past five years, compared to an increase of about US$3.5 billion in foreign reserves.
Using a simple comparison, Tembo said a person cannot claim to be financially secure simply because they have money in a savings account while failing to pay their debts.
“You may have money in the bank, but if creditors are knocking on your door because you have failed to settle what you owe, your financial position is not as healthy as it appears,” he argued.
Tembo also questioned why Zambia should keep billions of dollars in foreign bank accounts while local businesses struggle to access affordable loans. He suggested that part of the reserves could instead be invested through a Development Finance Institution to provide cheaper financing to Zambian businesses and support job creation.
He argued that continued Government borrowing from the local market leaves less money available for businesses, making it harder for companies to grow and employ more people.
However, Government has consistently defended the growth in foreign reserves, saying the funds strengthen Zambia’s ability to pay for imports, support the stability of the kwacha, meet external obligations and protect the economy against global financial shocks.
©️ Kumwesu | June 28, 2026