ECONOMIST CALLS FOR CLOSE MONITORING OF ZAMBIA’S RISING DOMESTIC DEBT
By Joseph Kaputula
Economist Dr. Esther Banda says while Zambia is not currently facing an imminent domestic debt crisis, the country’s growing domestic debt burden requires close monitoring.
Dr. Banda says continued growth in domestic borrowing at a pace faster than government revenue collection and economic expansion could eventually become a major macroeconomic challenge.
She has since urged government to accelerate export growth, strengthen domestic revenue mobilization and maintain disciplined public expenditure to keep debt levels sustainable.
In an interview with Phoenix News, Dr. Banda says she has not seen sufficiently prudent management of domestic debt under the UPND administration, citing the recurring use of supplementary budgets which she says have resulted in additional domestic borrowing.
She acknowledged government’s efforts to prioritize debt repayment and restructuring but cautioned that rising domestic debt also increases the cost of servicing it.
Dr. Banda explained that higher debt servicing obligations could divert a larger share of public resources away from development projects and other key government programmes.
As of the end of 2025, Zambia’s total public debt stood at about 28.9 billion US dollars, comprising approximately 18 billion dollars in external debt and nearly 11 billion dollars in domestic debt.
PHOENIX NEWS