KUDOS to the Minister of Finance for reaffirming the country’s desire to have moderate risk of debt default and emphasising the need to dismantle arrears and by extension lower the non-performing loans from the uncomfortable high of 13 percent to further unlock private sector-led growth. However, of concern is the revelation that only projects that are at 80 percent completion will be funded, all loans yet to be disbursed have been cancelled or will be renegotiated, this begs the following questions:
How many projects are at 80 percent, how much will it cost to complete and how long will it take to complete these projects so that new ones can be funded?
Which loans have been cancelled, and as a consequence, which projects have been cancelled?
Some of these projects that will be canned had high impact potential.
As a result, the country needs a bit more information.