Introduction
ActionAid Zambia (AAZ) is part of ActionAid International which is a global movement of people working together to further human rights and defeat poverty for all. It works in Africa, Asia, Europe, and the Americas to eliminate poverty and the inequalities and injustices that cause it. In Zambia, AAZ focus works on four thematic areas: Women’s and Youth Socio-Economic Empowerment, Youth Engagement and Empowerment, Civic Participation and State Accountability, Climate Justice, and Women-led Emergency Preparedness. ActionAid Zambia’s vision is to see a just and poverty free Zambia in which every person enjoys the right to a life of dignity. In trying to realize its vision, AAZ works with poor and excluded people to end poverty and injustice.

Background
The Public Debt Management Act of 2022 in Zambia was enacted to address the country’s significant debt challenges and ensure sustainable, transparent, and accountable borrowing practices. The purpose of Zambia’s Public Debt Management Act of 2022 is to establish a comprehensive framework for managing the country’s public debt and ensuring that Zambia’s borrowing is sustainable. Zambia has faced significant fiscal challenges over the past decade, and its public debt has increased rapidly, particularly since 2011. This surge was driven by heavy reliance on commercial creditors to finance fiscal deficits. By 2021, the debt servicing costs consumed over half of the national budget, limiting the government’s ability to invest in critical sectors like health and education.

The country has struggled with large fiscal deficits, partly due to increased public sector spending escalating domestic arrears. These imbalances have been exacerbated by shortfalls in tax revenue collections and corruption.

The high debt levels have led to adverse macroeconomic effects, including exchange rate depreciation, inflation, and reduced private sector credit. These factors have collectively hindered economic growth and increased poverty levels.
The Public Debt Management Act of 2022 was introduced to address the challenges Zambia has been facing and improve the overall management of public debt.

The measures to restore debt sustainability are ultimately designed to create fiscal space for essential social spending and foster sustainable economic growth. The development of the Debt Sustainability Analysis (DSA) and the implementation of the debt sustainability strategy and fiscal risk management framework is outlined in the Public Debt Management Act of 2022. However, since its enactment there has been significant progress in its implementation, while challenges remain.

With this background the overall objective of the research, is to assess the Debt Sustainability Analysis (DSA) against government’s commitments to actualise the debt sustainability strategy and fiscal risk management framework.

General objective
The generated evidence will enable ActionAid Zambia to capacitate and support civil society organizations to meaningfully engage in evidence-based dialogue with the duty bearers to influence policy decisions and will be practical enough to be taken forward by anti-austerity advocates to contribute to changing the policy landscape.

Specific Objectives

• Examine the key provisions of the Public Debt Management Act of 2022 related to debt sustainability and fiscal risk management.
• Evaluate the findings of the Debt Sustainability Analysis produced by the Ministry of Finance and government’s implementation of the Debt sustainability provisions, including:
  – Debt management policies and operational procedures
  – Debt monitoring and reporting systems
  – Coordination between relevant government agencies
• Assess the government’s efforts to establish and operationalize the fiscal risk management framework, including:
  – Identification, measurement, and monitoring of fiscal risks
  – Mitigation strategies and contingency plans
  – Institutional arrangements and responsibilities

Process
The Consultant will engage relevant stakeholders to collect the necessary information required to meet the specific consultancy objectives in line with the project timeline. The consultant will be expected to deliver and/or share preliminary reports and/or draft reports with the Programmes and Policy Manger and ActionAid Zambia team and its partners for validation. Thereafter, the Consultant will be expected to address all the comments to be provided for the purposes of the compilation and validation of the final and consolidated report, and subsequent submission to ActionAid Zambia.

Key Deliverables

• Preliminary first draft of the research report
• Second draft and PowerPoint presentation for external validation
• Final draft addressing feedback from the validation.
• Final PowerPoint presentation for launch event

Time schedule
The consultancy is expected to be undertaken for a period of 30 working days inclusive of validation of draft reports and submission of final report. Therefore, the Consultancy period will take place from Monday 9th December 2024 to Monday 10th January 2025. The final report must be submitted on 11th January 2025.

Qualifications and Competencies
The consultant should have the following qualifications:
a) Post graduate degree in Social Sciences, preferably in Economics, Development Studies, Public Policy, finance or any other related fields.
b) Extensive experience in public debt management and fiscal risk analysis.
c) Good understanding of the Zambian debt management policies and procedures.
d) Extensive, experience in undertaking complex and similar assignments with reputable institutions.
e) Demonstrated ability to prepare timely and high-quality reports.
f) Must not be practicing active politics

Bid Submission
Prospective consultants should submit the following via email at info.zambia@actionaid.org

• Not more than 3 pages technical proposal highlighting how they intend to undertake the required deliverables.
• Not more than 3 pages of a detailed financial proposal.
• A Curriculum Vitae (CV) outlining demonstratable experience in conducting similar work and traceable references.