By Isaac Zulu
Private Sector Development Association chairperson Yusuf Dodia says government’s over borrowing using various financial instruments is negatively impacting private companies and industries.
Speaking with Daily Revelation, Dodia said that on treasury bills and bonds, the private sector is equally negatively impacted because government tends to borrow more from banks; thereby disadvantaging private companies and industries.
“And when it comes to treasury bills and bonds, the government tends to borrow more than those operating in the private sector. And by the time private companies and industries want to go and borrow from the banks, the money is already finished. So in both cases, the private sector is adversely affected,” Dodia said.
He also said that the government’s domestic debt is adversely affecting the private companies and industries.
He said the money owed to local contractors and suppliers was in billions, which he said was making it difficult for the private sector to operate and thrive.
“Domestic debt is twofold, namely; money that government owes to contractors and suppliers in the country. The other one is in form of treasury bills and bonds,” said Dodia. “So if government owes local contractors and suppliers large sums of money, it simply means that private companies and industries are finding it difficult to operate because they will be struggling to pay workers and utility bills. So clearly, the private sector is adversely affected.”
