Industry players in the energy sector say government must act briskly in issuing the 15-year bond to clear the 2.4 billion dollars debt.
Government’s indebtedness to the energy sector has been cited as one major threat to the growth of the sector.
The issuance of an energy bond they believe will rescue the country from its power crisis. Government has announced plans to issue a 15-year bond to settle all outstanding debts in the energy sector.
Reports say that as at 31st December 2016, government’s net debt in the energy sector was 2.3 billion dollars.
According to the General Manager for Finance and Administration at WAPCo, Mike Enendu government must endeavor to fulfill the promise to enhance the progress of the sector.
“What is very good for me is that the government is working very seriously to clear the debt in the energy sector. For me that is critical.
“But for those of us in the sector, we are looking forward to seeing that the debt problems in the sector are sorted out,” he stated.
Meanwhile, banks are also optimistic of significant improvement in their non-performing loan portfolios as government initiates moves to clear all outstanding debts owed them.
The debt has been cited as a threat to the banking sector as it has led to about 36 percent increase in the bad loans of banks as at February 2017.