Youth Activist Backs French Firm To Help Restructure Zambia’s Debt

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A Youth Activist says there is nothing sinsister about the engagement of “Lazard Fund Managers” to provide advise to the Zambian government on debt management. The firm has been selected by the Ministry of Finance for purposes of providing Financial advise on debt restructuring at the tune of US$ 5 million over a period of three years.

Mr. Musonda Mwape, an Accountant by proffession tells #TheSpeechAnalyst that whenever a country is acquiring loans, there are middlemen involved to provide advise on the process.

“We wants to explain it in simple terms so that every Zambian can understand? So when you are getting these are big loans as a country, you don’t just directly engage the companies that are going to lend you the money. You have to have debt advisors. Just like when you want to buy some shares in the stockmarket, you cannot go direct as somebody wants to buy shares to go and buy from a company. You have to engage a stockbroker and the broker is the one going to advise you on which shares to buy which are likely to give you more retains” he explained.

Mr. Musonda further adds that “Lazard” are just middlemen in the acquisition of debt who will provide consultancy services to the government of Zambia.

“Remember that as a country we are trying to meet the conditions of the International Monetary Fund bailout package. So these are just steps that the government is taking so that we can meet the IMF conditions. We need to understand that the company Lazard is one of the highly recommended companies in the world in terms of debt restructuring” he said.

He went on to highlight that “So if our government decided to engage a company Musonda and Associates that is owned by me then the Country will fail to make the IMF bailout package a condition. So it is not within government privileges to choose a local financial advisor, It’s a condition that we have to meet in order for us to get the IMF bailout package. So there is nothing sinister about awarding the debt restructuring contract to Lazard International”.

The Speech Analyst

29.05.2020

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