—-Finance Minister, Alexander Chikwanda says Zambia’s external debt is within sustainable levels as it stands at only 15 per cent of the Gross Domestic Product (GDP).
Speaking to journalists in Lusaka today, Mr Chikwanda said Zambia cannot fall into a debt trap because the acceptable sustainable external borrowing threshold is 40 per cent of GDP.
He said Zambians should not be concerned that the country may revert to a highly indebted country because the current external debt was very manageable.
Mr Chikwanda said external debt is paid over a period of time which allows government to service the debt without any problem.
And President of the African Development Bank, Donald Kaberuka, said external borrowing is not bad if the debt is managed well and money put to good use.
Dr Kaberuka said African countries cannot depend on aid alone but should also go for rating and financial markets to source financing.
He, however, said countries must be careful in the manner they handle borrowing to avoid falling into the debt trap of the 1970s.
Dr Kaberuka said the best way is to invest the money in infrastructural development as opposed to borrowing for consumption.