.DODIA

By JAMES KUNDA? –

THE private sector has cautioned against the immediate acquisition of a third Eurobond on the international market by the Ministry of Agriculture and Livestock, as the country risks getting into a debt trap.
Private Sector Development Association (PSDA) chairperson Yusuf Dodia said Government should first audit the two previous bonds the country accessed recently before obtaining a third credit facility.
Mr Dodia said Zambia had already obtained sovereign bonds to the tune of US$1.7 billion and Government should ensure that the funds were invested in sustainable income generating ventures.
“These bonds have a period of 10 years in which they should be paid back to the international creditors and before Government can get additional credit facilities, audits need to be done to make it easy for the country to pay back,” said.
Recently, Agriculture and Livestock Minister Wylbur Simuusa said his ministry was soliciting for a $1 billion sovereign bond to invest in the sector.
Mr Dodia said the amendment of Value Added Tax (VAT) rule number 18 of 1997 by the Zambia Revenue Authority (ZRA) would deprive the country of information regarding exports.
He said in its previous form, VAT rule number 18 compelled exporters to present import documents from the countries to which their products were destined.
“But in its present form, exporters will not have to furnish import documents from the international market and this means the country will not have accurate information about the export markets,” he said.