Dr Mutesa questions World Bank’s endorsement of external borrowing

Dr. Fredrick Mutesa

Zambians for Empowerment and Development President Dr. Fred Mutesa has urged Zambians to analyze and understand the statement by World Bank country director Dr Kundhavi Kadiresan endorsing the PF’s external borrowing

Dr Mutesa says Zambia should not be excited at the World Bank’s support for the PF government’s borrowing but analyze the statement by the World Bank.

Dr Mutesa notes in agreeing that Zambia still has enough space for external borrowing, Dr. Kadiresan pointed out that the PF government must now start looking at improving the country’s public investment management so that the borrowed money is spent efficiently.

He says this is also a reminder to the country that unless the public financial management system is put in order, the country may find itself in a debt trap which will be difficult to come out of.

Dr. Mutesa says government should critically understand the statement and understand its meaning before they start rejoicing that they have the support of the World Bank for increased external borrowing.

He has since urged the Patriotic Front Government to put more effort in ensuring that the country has a sound public financial management system instead of rushing to borrow more money from international financial markets which may land the country in problems.