Proposal Debt Swap Not Viable,
By Francis Maingaila ♥️
Lusaka, Zambia24 — (20-06-2026) --- The Movement for Democratic Change (MDC) has warned that the proposed debt swap policy being championed by some opposition political parties is impractical, unsustainable and less beneficial to workers than existing government programmes, arguing that it would be difficult to implement and offer limited benefits to the broader workforce.
MDC Vice President and former Zambia Congress of Trade Unions (ZCTU) president Leonard Hikaumba questioned the viability of the proposal, saying it faces significant administrative and sustainability challenges that could undermine its effectiveness. He noted that a similar proposal was abandoned by the Patriotic Front (PF) government in 2021 due to concerns over its practicality.
Hikaumba said that while the debt swap proposal may appear attractive on the surface, it is fraught with complexities that could undermine efficient service delivery by government.
He argued that the initiative would primarily benefit individuals who are already owed money by the government rather than the majority of workers.
“We must look beyond the immediate appeal of a debt swap and scrutinize its implementation,” Hikaumba said.
“This proposal is administratively taxing and presents significant challenges when attempting to apply the same logic to third parties who are owed money by government workers. It is not a universal solution, and its sustainability is highly questionable.”
He warned that implementing such a scheme would require extensive administrative processes and could create additional financial obligations and complications that may affect the smooth functioning of government systems.
Hikaumba instead pointed to recent social security reforms as a more practical and equitable means of providing financial relief to workers.
He cited the National Pension Scheme Authority (NAPSA) 20 percent partial withdrawal policy as an example of a measure that gives contributors access to part of their savings while preserving their long-term retirement security.
“The NAPSA reforms represent a balanced approach. By allowing contributors to access a portion of their funds while maintaining their long-term pension benefits, the government has addressed immediate financial pressures without destroying the pension system's future viability,” he said.
He urged workers to carefully examine political promises and consider the long-term consequences of policies that may appear beneficial in the short term.
According to Hikaumba, any proposal involving the conversion of debt into benefits requires thorough analysis to ensure that workers’ contributions and pension funds remain protected.
Hikaumba further argued that government-backed empowerment initiatives such as the Sustainable Agriculture Financing Facility (SAFF) and the Citizens Economic Empowerment Commission (CEEC) provide more sustainable opportunities for economic growth and financial independence.
He said such programmes enable citizens, including civil servants, to establish businesses, expand income streams and reduce dependence on one-off financial interventions.
“Workers must compare policies based on reality, not rhetoric. A good policy must empower workers today while protecting their future. We should not focus on what we receive today if it means losing our security tomorrow,” Hikaumba said.
He called on workers to support policies that promote job security, genuine economic empowerment and long-term financial sustainability, rather than proposals that could prove difficult to administer and benefit only a limited section of the population.
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