The Civil Society Organization Debt Alliance has expressed concern over the significant setbacks faced by Zambia’s Eighth National Development Plan (8NDP) in 2023, revealing critical financial challenges.
CSO Debt Alliance Coordinator Peter Mumba says issues such as incomplete debt restructuring, illicit financial flows, and inadequate domestic resource mobilization have worsened the financing gap, hampering the nation’s progress towards its development objectives.
Mr. Mumba said that the 2023 Annual Progress Report on the 8NDP implementation indicated that only 46% of the targets for 2023 were met.
“Significant revenue leakages through illicit financial flows including tax evasion and trade mis-invoicing, have fostered the situation,” said Mr. Mumba in a statement issued to RCV News in Lusaka today.
He said that the Financial Intelligence Centre (FIC) reported K56.5 billion in suspected illicit financial flows in the third quarter of 2023 alone, which could close 96 percent of the 2023 8NDP financing gap.
Mr. Mumba has therefore urged government to develop a robust policy and legal framework that enables effective tracking and prosecution of illicit financial activities.
He also called on the Zambia Revenue Authority ZRA to maximize taxes in the mining sector and ensure that tax evasion is minimized by rigorously monitoring mining activities.
Angel Kasabo
