The Private Sector Development Association (PSDA) has observed that government’s issuance of the US$1 billion sovereign bond to push the country’s international debt to US$4.5 billion is dangerously dragging the country into the same debt crisis of the 1980s.
PSDA Chairperson Yusuf Dodia has told Qfm News that the country needs to continuously remind itself of the worst period it went through in the 1980s when debt reached $6.5 billion forcing people to line up for household essential commodities.
Mr Dodia says it is for this reason government should seriously consider engaging in dialogue with the private sector to ensure that the money borrowed through the issued sovereign bond is utilized in areas that will bring economic development to the country.
He says engaging in such dialogue will enable the government to know exactly the focus of the private sector to ensure there is a quick return on investments.
Mr Dodia says the idea of engaging the private sector is in view of the fact that the private sector is the engine of the country’s economy and therefore it makes good sense for government to bring on board the private sector.
He has warned against government using the borrowed money for consumption.