Denial
There is a very distinct difference between a good and a bad finance minister. A good finance minister will keep his nation informed about the true state of the economy and prepares public opinion for adoption of appropriate policy measures to keep the economy healthy. A bad one, on the other hand, misreports facts and silences the public into believing that all is well until the economy crumbles.
In his maiden state of the economy address since the PF came into power, Finance Minister Hon. Alexander Bwalya Chikwanda (ABC) today (20/03/2014) painted a picture of the economy that faintly resembles the economic conditions prevailing in the country. Mr. Chikwanda painted a picture depicting that aside the exchange rate, ‘all is okay’. If ABC did not have any training in economics or lacked access to the latest economic data or indeed lacked well trained economists as advisors in the Ministry of Finance and Bank of Zambia, perhaps he could be given the benefit of the doubt-but no, he is an economist by profession and has access to all economic statistics and a multitude of brilliant economists at his disposal. So why is he downplaying the true state of our economy?
Mr. Chikwanda stated that “the nation has continued to post favourable economic outcomes”, that “the economy has remained strong and stable” that the Fitch rating of B reflects “reflects the positive strides that we are making as a country”, that the fall in the exchange rate is due to “cartels in the banking sector” and that the “Government is firmly in the driving seat to steer the economy of our beloved country to greater economic prosperity.”
Facts on the ground
The finance minister’s assertions are contrary to the facts on the ground. We are not sure which economy he was referring to because contrary to his assertions, the reality is that economic fundamentals have become very weak under his watch and the economy, on its current path is headed for greater disaster.
Mr. Chikwanda inherited an economy with Fitch rating of B+, and has downgraded it to B, how can he surely fail to interpret that this implies a poor performance when compared to the MMD era? The exchange rate is at a record low, deficits and debts on record high-how can these be indicators of a strong economy? Are these the positive outcomes he is referring to?
[pullquote]domestic and external borrowing in under three years of PF will soon be more than the borrowings of all the previous government’s 20 years put together[/pullquote]
Let us be true to ourselves. The budget is out of control with a higher than planned deficit of 6.7%. The Minister attempted to downplay the IMF’s deficit projection of 8.3% against the government’s estimate of 4.3%, but then, the actual deficit is higher and close to the IMF’s figure—yet, he still lives in denial that he was off-target.
The last inflation statistics are slowly showing a rise, public-sector debt has reached unsuitable levels and the exchange rate has depreciated faster and reached levels never seen in the history of Zambia.
Clearly, even an ordinary person would say that the economy is in bad shape. One need not be an economist to know that the price of essential commodities is on the rise. We don’t need to be economists to know that the cost of housing will be higher with the 10% property transfer tax he introduced, the highest in the region if not the entire continent. The economic conditions of an average family have become worse due to rising prices, large-scale unemployment, high transport costs and electricity—yet he claims the economy is getting stronger?
With all this, it is really painful shocking that the Minister of Finance of our country cannot see what people are experiencing in their daily lives and he seems to fail to correctly interpret economic statistics.
Our Economic problems due to PF’s governance style
Let us face it, our economic problems were not visited on this country by some cruel act of God or forced onto us by nature. These are man-made problems created by the PF and its approach to governance, economy and political.
The domestic and external borrowing of the present government in a period of just under three years will soon be more than the borrowings of all the previous government’s 20 years put together. The current government has borrowed and continues to borrow too much money. Borrowing too much is the cause of Zambia’s problems, not the solution. And these problems will affect our future generations. The government thinks you can borrow without regard to ability to pay, and spend carelessly on by-elections and bloated governance structures without regard to value for money, tax payer’s money and without regard for the serious needs of the country.
This government has taken the deficit in its current operations to a level never seen before in just under three years. With total debt to GDP ratio of 31.3%, and domestic revenue capacity of only 20% of GDP, surely we are living far beyond our means. The government is set to establish a new record in excessive borrowing from the commercial banks to finance fiscal operations with the recent upward adjustment to borrowing.
The plain reality is that the government is unable to generate enough revenue to meet any of its planned expenditures. Consequently, all debt-servicing and debt repayments, and all development expenditure is soon to be financed through borrowing, creating the classic situation of debt trap—borrow to pay debt, fail to move out of debt, leading to HIPC(Highly Indebted and Poor Country).
With lagging revenue generation from the ZRA, the amount of domestic bank borrowing is bound to accelerate in the remainder of the year, and subsequent years. This will not only result in further pressure on the BOZ’s reserves and the exchange rate but also hurt private-sector investment, the very engine of growth.
Hon. Chikwanda seems to be adopting a lay back approach in his speculation that “cartels” in the banking sector are responsible for the falling exchange rate. Again, if he had not studied economics, I would have forgiven him, but I cannot. His assumption is that the exchange rate is being driven by manipulation by banking cartels. At this point, let us ask him, what then is the BOZ doing about this? Isn’t it the role of the Bank of Zambia to ensure prudential financial sector stability and competition? Why would an entire Ministry sit back and let the kwacha depreciate when the “cartels” behind it are known? The minister seems to be speculating here, and his assertions are uncorrelated with the work of the BOZ. Again, this is a clear case of living in denial and failing to take responsibility for the inconsistent policies.
Revoking SI33 and SI55
That said, let us commend Mr. Chikwanda for revoking the SI33 and SI55. I don’t really fully support SI33’s reversal, as it will, in the case of a worthless kwacha erode the confidence in using the kwacha and lead to dollarization, the case of Zimbabwe. The legal tender status of the kwacha must be emphasised. However, perhaps this is a good measure in the interim. On SI55, why did you even introduce it the first time? On this one, I hope some tabloid and individuals with vested interests will not issue unsubstantiated statements lacking a clear understanding of the economy demonising this move as was the case last time. I hope HE.MCS will not reverse this too like he did the last time, we need consistency, please.
As we conclude, let us remind ourselves and our Hon Minister that proper treatment of the sick economy such as ours will first require an acceptance, not denial that it is sick, followed by remedial measures such as a sharp cut in the budget deficit and initiation of export-led growth through structural reforms. Finally, let us all commend Mr. Alexander Bwalya Chikwanda, for taking the courage to address the nation on such an important matter. This is indeed a breath of fresh air noting that it is the first of its kind since 2011 that a government leader has had the courage to address the nation and face the media. This is indeed a good move, and may raise the confidence required in our economy.
By Hjoe Moono
Clearly young Zambians are in a better position to run Zambia than these old madalas.It’s time to have a cabinet full of people in their 20s-50s. PF you are messing up our future,you have lived way past expiration date.
Brilliant analysis again from the son of the Zambian soil.
1. SI 55 and 33 GONE but one more go.
2. POA abuse and POLITICAL INTOLERANCE should also STOP for both local and
foreign investors to gain confidence in our economy and our currency.
3. CUT POLITICAL WAGE BILL by reducing cabinet posts and other un necessary
QUANGO posts to save money instead of relying on borrowing.
CHIKWANDA PLEASE WORK ON THE SECOND AND THIRD IMPEDIMENTS ABOVE TO COMPLETE THE ECONOMIC PUZZLE. ONLY YOU CAN CONVINCE SATA THAT POLITICAL INTOLERANCE AND UN NECESSARY QUANGOS ARE BAD FOR THE ECONOMY AND OUR CURRENCY.
CHIKWANDA if you fail to act on these two economic impediments then you are not fit for purpose. In UK the Finance Minister is number 2 to the prime minister to offer such…
When SI 133 and SI 155 was invoked by Chikwanda the old frozen faced dinosaur with outdated and Zinjanthropus era economics, many sane Zambians especially HH denounced this move as a forex starving and negative strategy. A lot of monkey thinking bloggers insulted HH saying he thinks he knows it all. Well I now believe in HH’s wisdom. Chumbu Kelenka at Statehouse sickbay does not understand an iota of good governance and it’s effects on the economy. Now they are busy correcting mistakes which by using common sense could have not been avoided but made in the first place. I see no future for our economy as long as ABCDEFGHI,,, oh- ABC as those who believe in him call him. He’s the same disastrous fellow who left us 7 billion in debt with his nemesis Fonkofonko, another useless chap.
When SI 133 and SI 155 was invoked by Chikwanda the old frozen faced dinosaur with outdated and Zinjanthropus era economics, many sane Zambians especially HH denounced this move as a forex starving and negative strategy. A lot of monkey thinking bloggers insulted HH saying he thinks he knows it all. Well I now believe in HH’s wisdom. Chumbu Kelenka at Statehouse sickbay does not understand an iota of good governance and it’s effects on the economy. Now they are busy correcting mistakes which by using common sense could have not been avoided but made in the first place. I see no future for our economy as long as ABCDEFGHI,,, oh- ABC as those who believe in him call him. He’s the same disastrous fellow who left us 7 billion in debt with his nemesis Fonkofonko, another useless chap.
Please Mr Moono give Uncle Chikwanda a breather, let him live in denial its okay,, the one to blame is Sata…. if he declares the truth about the Zambian economy he will be fired like masebo,,, the man is working under harsh animal driven instructions from Sata…. you can blame uncle chikwanda just alittle … but the one who is living in denial is Sata thats why he must tried for treason after 2016,,, all the trditional rulers in Zambia will be willing to testify against at the Hague
@Ndobo, thank you that you have taken care of Sata so closely. I was kind of giving up, because tomfwa mudala ulya, and he very lazy.
The word “denial” in Zambia is used by those NGOs preaching HIV/AIDs.I simply don’t like it, AGAIN. So much bull-siht words in Zambia.
Nkana 0-0 Zamaleck.
Kanshi ba Nkana bakali, playing under such depressed moments in Zambia, with the PF messy. Anyway Egypt & Zambia are in same political catastrophe.
The problem is the youths you are talking of, they won’t step up and do the work to get elected. They want power given to them on a plate minus hardwork, which will never happen. Thus wishful thinking remains in the stratosphere not in reality
Clear the leadership at MoF is not in line with modern economics, chances are that for him the economy is doing fine when he compares the performance today to what he did in the KK time. Mr Chikwanda please it is the right time to leave that office, so that newer generation with proper economic and practical experiences of the day can run that Ministry. Now hopefully you can understand why the age clues in the proposed much hated draft constitution. People we must know poor leadership affects all, even when you support and believe in the party.
These young people you are referring to are thieves. They will wipe the Treasury clean if given a chance to control the state resources. Ever wondered why hh’s party symbol is a thieving hand?
We are now praising leaders for addressing us?When RB ruled i thought that was the worst we had seen after KK and Chiluba.Alas i was wrong.Michael Sata beat that record and in his usual syle he has gone into hiding in State House.Am sure he is the one who forced Chikwanda to address the nation as he himself has failed to do so.
I totally agree with you. Praising him for merely addressing the issue nation for the first time in 3 years. All along they have been chewing without thinking of tomorrow and now tomorrow comes today.
Kariba Dam is awaiting an avalanche if nothing is done within 3 years. With the free failing Kwacha, I’m afraid of PF not putting this issues above agenda. Otherwise, PF should just admit to their failure and let the younger generation take over.
2016 is too far! Let us do something about these maggots! If it means putting a bullet or planting a bomb on him (Sata) let’s just do that! He should not reach 2016 please!
HH has been vindicated again. This Tonga bull is very intelligent no wonder he is so successful in his businesses. I will join UPND when I am next in Zambia so that I can bring a wealth of advice to that party in my expertise. I recommend the incumbent government for listening to HH and implementing this change. The effects of the two SI revocation will take long to be felt as the damage done has been intense. The dollar rules the world whilst the pound nurtures it and that’s just the way it easy. You do away with the dollar at your on peril. Do you remember what Saddam Hussein called the Americans? Infidels and good for nothing. Alas! he was found hiding in a manhole, pistol in one hand and a briefcase in the other with $1million in it of whose money? The infidels! in God we trust.
@One hit
It is not HH that has been vindicated but the MMD. They were clearly leading Zambia on a path of economic prosperity but the evil ones with self vested interests in the name of M’membe were determined to bring RB down without a care as to what else came down with him. How does anyone with an ounce of care for the well-being of his nation, fail to see that Sata was never going to bring any good for mother Zambia? M’membe is a traitor and should be made to pay for “selling” Sata to the unsuspecting gullible souls that took his utterances as gospel
@it’s a worry(Discredit the Post and Kabimba for lying to the nation about RB) says:
You should to give credit where it is due. HH is on record arguing with Sampa telling the whole PF that SI 33 and 55 are bad for our currency and the economy.
So many of HH ‘s predictions have come to pass. On the constitution he was right when he said PF will not enact it. On SI 33 and 55 he has been vindicated. When he said PF are CNP, again this is true of PF.
You have to respect HH because making predictions in the field of governing and economics is his expertise. Thats how he made his millions by advising big multinationals how and where to invest in order to minimise political risk. Even today HH is paid by many companies in Africa and the world over to give his advice and predictions…
@Wanzelu
I am not refusing that HH has made such statements and argued against Sampa. But that came post Sept 2011 and when the PF took the turn to change the path of our economy, all of us that had some understanding shouted on top of our voices against the iceberg that was visible ahead. It wasn’t just HH who said or challenged the PF and therefore, my point is made in recognition that the “initiators” of the policy have been vindicated.
Absolutely.
Fantastically put. Now I’m just relaxing as we spectacularly laugh out loud at the down fall of PF. They thought politics, policies, political parties and government are the same, alas, PF must be shocked awakened this time around.
Mr ABC, talking will not solve problems, action will and please don’t forget about people’s constitution. HH and N.Mumba are hunkering on the other side z PF Is being blown up from all angles.
Thanks that he has eaten the Hot Chi lied and Peppered Pie of reckoning.
# 3. One Hit Wonder
The writing is on the wall that HH is currently on lead in projections of the next best person to lead Zambia. This has not been determined by his courage to stand to Sata’s abuse of Zambians by using state machinery or threats of arrests. HH has been consistent in his statements he has articulated the economic ills of the nation and where current leadership has got it wrong. His vision and information update with world business trends congruences complexity management analysis.Unlike face book social media rule. We, in UK know, read and live with civility governance, our contribution is to support him in the next elections for the benefit of the nation.
A balanced critique, quite unusual, coming as it does from a Tonga, from whom only insults are to be expected.
Its only unusual to you and your small “peanut sized” tribalist brain…why should the author’s name be the topic of discussion. If you are incapable of discussing issues do us a favour and excuse yourself.
You are such an i.d,i.ot and bas.ta.rd who always sees things in terms TRIBE! You are seeing this good article in terms of the tribe of author and not it content! Are you not ashamed of yourself ar.se. al?
I like this Moono guy or is it Girl? He writes sense, most of the time, and reminds me of that Sishuwa fellow who used to write a very critical weekly opinion in the PFost. Let us have more and more of these young people in positions of power. I remember that in Kaunda’s time, young ones like these were deliberately groomed. Chikwanda has failed. When will Sata realised this, swallow his pride and bring someone more competent like Magande?
I totaly agree with you…SataN should put this old fossil Chikanda out his misery of running the economy!
The economy is failing and is hurting many people directly and indirectly BUT ols rug Chikanda doesnt have the mental capacity and energy to do something sensible!
Let us just get rid of the whole rot called PF from govt and start afresh with a young team, multi tribe, of guys who understand modern economics and governance. We need a new culture of politics in Zambia, issue based based with integrity and strong systems oriented. Zambia and africa can shine on the globe with proper governance and planning. What do you expect from a combination of people like Sata, Scott, Chikwanda, Munkombwe, KK etc at the helm with a remaining average life expectancy of 3-5 years. But first things first, we need a people driven constitution yesterday.
The problem with PF is that they don’t want to listen to the different opinion. I wonder how the ministers with contrary views do in their cabinet meetings. On the otherhand I feel when we differ with them we should offer alternatives so that they also see what we would have done. Its no secret that PF have neglected to listen to civil servants advise. Otherwise we commend them for revoking the SIs albeit too late. Surely you start feeding a person when he is dead – good intention at the wrong time. I can’t wait for 2016 to vote to remove this PF government. I am also scared for the incoming government because what the PF are doing is to do infrastructure which we can see but ignoring the fundamentals of economics which most of us don’t see. So come another party, people will say PF…
Living in denial indeed. However, let us not forget that the nation sometimes needs to hear from the driver himself in order to instil confidence. When the President speaks through a press conference, he only not speaks to the nation but to the world at large, and his address may rekindle the fast fading investor confidence. It is my personal view that social media like face book or indeed LT is the best way to address the information starved masses. I would suggest that for once, let the president address the nation on the state of the economy by way of a press conference. This, I can guarantee him, will have tremendous instant positive effect on the ailing economy, vis-a-vis the free falling currency!
Sorry folks, I meant to say that SOCIAL MEDIA LIKE FACEBOOK AND LT OR WHATEVER IS NOT THE BEST WAY TO ADDRESS THE MASSES!
It is rather too late! In fact, any press conference or briefing by the brain dead old rug of president Satan will only create further panic on the Money Market where it will be construed as a knee jerk reaction to an existing grave crisis! Where was he all along?
But why cant these two old fools in the picture just resign?Look at Gondwe even putting on a checkmate.Where have these old fools been all this time.You mean they cant just leave they cant survive on the street?How do they feel when they compare their performance with that of their predecessors?Have they no sense of shame.Sad for our country.
Many uninformed kids and UPND cadres like @Wanzulu & @ Moono on this site have been asking amateurish questions like, “Who are the cartels””?
Really does one require common sense to know that with the SIs 33 and 55 in place they were forcing wealthy individuals to withhold their $, or the pound sterling etc because the two instruments had forbidden such individuals from trading in Forex thereby creating an artificial surplus of the Kwacha and a shortage of the forex on the market?
Moono thinks that the he is scoring spoints. Please wait for the 2016 vote!
S.H.I.T of comment! Ask your grand mother!
The best thing this president can do for himself and for the country right now, is to fire Alexander Chikwanda and appoint a new finance minister who is equal to the task. Otherwise, let the Zambians take to the streets in protest over what is happening to the economy.
Wnzelu thinks he is all intelligent, all wise. Let me tell that there are professionals that are noble and not what you Africans claim. I am of the scientist who led to the discovery of Kangaluwi project. I am smart and intelligent. The secret to our prosperity does not necessarily lies in courses such as law, sociology, economics but investment in science and technology. The whites know the secrets to success. That is why I tell you that arguing with someone who has sold his soul to HH is impossible to see sense in what the gvt is doing. Your only preoccupation is to make sure HH is in state house. You don’t know that pipo who sees you 24/7/365 on social medias actually balimisula. It means someone is lazy. You will never convince your candidate through 365 blogging.
@BBC
Why me , but why me, is it because you acknowledge that you are no match to me thats why you have taken a stance to criticise me personally instead of debating the issues raised in the article.
Only people who run their own businesses successfully or hold top positions of huge responsibility in companies can have such time at their disposal to blog 24/7. If you don’t please don’t try it because your family will starve my friend.
You wimp ,leave me alone and continue to praise Sata and his PF for bread crumbs off his table.
I am off to the pub now to knock down a few pints and eat some steak. Later @BBC. Tah!
Inferiority complex yourself @ bbc! You want to call back the whites because you BBC have failed mother Zambia.
To wnzelu and friends, the more you hate Sata, the more we like.
@ME
We dont care what you think because we are all self sustaining individuals who do not depend on Sata for survival. But we all know is that Sata ‘s demise is in a minute from now so the cockney say here in uk.
This guy you are calling ABC (Alexander Bwalya Chikwanda) is an ECONOMIC HIT MAN. He is up to no good. He is doing whatever he is doing, just to destroy the economy. The way he left the economy the first time he held this office, is the same way he is going to live the economy now – in coma.
What this man is doing is just to hoodwink everybody into believing that all is well. One wonders why Zambia, as a society, allows itself to be taken for a ride, time and again. Is it now true that once beaten twice shy? Don’t we see where this economy is heading? Surely, we are not that dumb, are we?
This man has had his hey days during the UNIP era. Why are we affording him another chance to put our house on fire? Why not smoke him out of his office before it is too late?
Sorry, meant to say: “leave” not “live” – “is the same way he is going to leave the economy now – in coma”. And not: “is the same way he is going to live the economy now – in coma”.
My other advice is that the government should stop making reckless statements such:
1. My MP’s are useless. If the MP’s are useless and meanwhile cabinet is formed by ruling
MP’s, then it is a confession that the government is useless. How do you expect the
outside to have confidence in you when you have no confidence of yourself?
2. The constitution is just a piece of paper and not a magic bullet. If you can not respect the
supreme law of the land, how do you then respect the subsidiary laws? This sends fears
to the investors as they are uncertain about what decrees may be made.
3. NGOs are formed by people who are trying to survive; How do you build donors
confidence when governance and accountability is put to such ridicule by senior
…
@Jocylyne. That is an excellent observation. I conqur with you.
As long as pf leader continues wherever he’s Zambia remains in economic malais there’s no solution under the tinpot ruler.
Well articulated article. Even a lay man like me can now understand what is prevailing in Zambia. The question is are we going to seat back and relax when we are clear seeing our country been puddled into a ditch. Food for thought, we can surely do something for the sake of mother Zambia.
The other advice is to avoid playing double standards such as;
1. Warning KCM not to fire even one person and later depots its CEO for “firing”
76 people. Two weeks later the same Government fires over 500 of its nurses
2. Clearing GBM of his corruption allegations when he is within the government. As soon
as he resigns, the same case is revisited while that of Kabimba, who is still in
government , and having been seen threatening ACC on camera still remains silent.
3. Threatening to arrest those that have leaked the constitution, meanwhile chiefs who are
commenting on the Lands article in the constitution which is not yet out are left free.
4. Arresting opposition supporters for peacefully attending a rally leaving the PF
cadres protesting in the…
ZNBC TV aired an appeal purportedly from the president sata he appealed to ‘all zambian pipo to love one another…’ a day after a battalion of armed police to stop HH FRM TOURING EP, as usual the message was a concoction laid out by George chella. Sata can never utter such words of love, he’s always acrimonious and antagonistic hateful and hateable above all arrongant and a liar brutal dictator.
It is good that the economy is now hurting because that’s what will unite Zambians and start to see sense!
We have seen that when the economy is crumbling and Forex blunders start affecting comodity prices, even the unproductive, lazy and pompous Bembas feel the heat and start disapproving the FOOL SataN they once adored!
But the damage of borrowing too much cannot be reversed that easily….the effect will continue being felt for decades to come until FOSSIL CHIKANDA’s debts have been repaid!
I like your insulting comments,would you like to be insulted the same way.Brainless.
I am surprised you have the courage to say this. As it was in the days of Frederick Titus Jacob Chiluba, so it is today. In the days of Chiluba as president of Zambia, the people you are referring to, plundered the economy and were the last ones to feel the heat, if at all they did; and that, long after the rest of us had been reduced to ashes.
The same people are plundering the economy today. And they are doing so with better technics and experience; and at a heightened scale. If anything, they will be the last ones to ‘feel the heat’, and that, long after you and me and our people have been reduced to pulp! This Alexander Bwalya Chikwanda is a conman. He is not a bona fide finance minister.
You have missed the plot! I meant that Zambians only wake up when the economy hurts them! Of course they cant stop the Bemba thieves from stealing but they CAN put thives out of power! How can you leave RDA in the President’s bedroom?
Kaunda was only thrown out because of shortages and high mealie meal prices even with coupons:
Chiluba was hung to dry with 3rd term because of the hurting economy;
SataN is only in trouble because Forex and Fuel subsidies as effects are beginning to hurt everyone even families of thieves!
Even under Chiluba, the thieves in the end suffered too! Mbala Mafias like BY (MHSRIP) died broke and Chitala today is bankrupt and looking and a shell of what he was!
Believe you me, the economy will deliver the political change not Opposition Party can ever…
chan’t wait to see these tongas get in to office without bemba votes, keep calling us names..
@adwika:
Dont worry – Tongas will actually get into Office with Bemba votes. Bembas will vote for Tongas because they know it is the sensible thing to do when:
1. Their own Bemba son Satan is humiliating their Chitimukulu
2. The Kwacha is selling at K11 to £1 sending prices sharply up
3. Their sons and daughters are dying in Kasama General Hospital because SataN fired the Nurses
4. So many of the Bemba children cant find work after school after freezing recruitment in the Civil Service
5. SataN is refusing to give them the constitution even after wasting billions of their money on it
5. They cannot afford mealie meal at K125 per 25kg bag and SataN can only address them through face book
6. SataN removes Fuel Subsidies making life like hell for them
…the ONLY sensible answer…
I faintly recall that at the height of introducing SI 33, the then Deputy Minister of Finance-Sampa seriously differed with the PS for Min of Finance. Now when I look back, the PS was correct as he was opposing the introduction of SI 33. Please let us not run the economy on trial and error basis. You can not do that when you are taking care of 13,000,000 lives. It is too risky. The President should re-evaluate his team and appoint capable people. What sort of benefit for example is the nation getting from people like Munkombwe and Mr Chikwanda? If anything we are getting only problems.
I understand all that there is about politics, even politics of tribe as is being practiced by the current regime. However, for Mr. Sata to appoint a person like Chikwanda as finance minister, it tells us that this president and his party have no regard whatsoever for this country.
Zambia has far much better qualified people. Late president Levy Mwanawasa set that precedence by appointing qualified people to run the economy. President Rupiah Banda did the same. Mr. Sata is a joker in that respect. He only went back to his village in Mpika and told the people of his village and clan: “Now I am the president, you are this and you are that…” With all due respect to kinsman ship, no sensible person can choose to run a country like that. Now the economy is in shambles.
The honorable thing Hon Alexander Bwalya Chikwanda MP can do is to resign from his ministerial position. Does he realise the hardship he has brought to this country? HE President Sata can do now is to look for another capable person for the position of Finance Minister. We’re tired of trial and error.
“FITCH Ratings has retained Zambia’s credit ratings at B with stable outlook, reflecting the country’s continued strong
macroeconomic performance, robust growth and low inflation.
The stable outlook means Fitch’s sensitivity analysis does not currently anticipate developments with a high likelihood of leading to a rating change.” Yet certain Zambians are seeing it in the opposite way.
@Chabwera: Are you not nuts? Do you say “retained” or degraded Zambia’s credit rating from B+? How many countries have had their credit ratings “degraded” by Fitch in the last five years? Are you ignoring all the red flags in the horizon such as the weakening currency etc.?
Zambia has far much better qualified people to run the economy. Late president Levy Mwanawasa set the precedence by appointing qualified people to oversee the economy and major strides were made. President Rupiah Banda did the same.
Mr. Sata is a joker in that respect. He only went back to his village in Mpika and told the people of his village and clan: “Now I am the president, you are this and you are that…” With all due respect to kinsman ship, no sensible person can choose to run a country like that. Now the economy is in shambles.
Mr. Chikwanda could have functioned very well in a different portfolio. The only reason he was appointed finance minister was to make sure that the clan has more money in its pockets. The country’s economy is not PF’s priority.
When an appointing authority, such as a president, appoints his friend or relative to the office of finance minister, he/she violates a cardinal principle of “control” in financial management. It implies that he wants to eat and steal together with the finance minister. That is exactly what Mr. Sata did and is doing. I doubt that the man is satisfied with the salary and allowances he is being paid as president.
Late president Levy Mwanawasa did not appoint a relative or a friend as finance minister. Neither did former president Rupiah Banda go to Eastern Province to look for a relative to be his minister of finance. There was a good reason for that. And certainly, it was not because there were no qualified Easterners to function as finance minister.
Ubomba mwibala cartel destroy economy:
kk and group ; ftj and group ; sata and friend
@ chilyata.
Precisely what I was referring to. You uncouth Tongas, with your sleazy mouths, will never ascend to STATE POWER in Zambia. Just concentrate on pastrolism, which is your mettle.
@2201, Kalanga Street:
Good for nothing untrustworthy Lazy Bemba thieves like you cant even feed yourselves are first to be hurt when the economy starts grinding!!
Your fellow Zombie Bemba Octopus Chikanda is already panicking at the slightest grind of the economy; not knowing what to do but cry in Bembas!
Even Bemba bas.ta,rds like you know that when shrewd, elegant hard working Tongas complain of Farm Inpouts, it is the Bembas who will STARVE!!
Tongas have always fed and looked after themselves And will now kick the Bemba thieves out of politics to bring sanity to Zambia!
@2201, Kalanga Street.
All you want is to have your kinsman in State House so that you can continue to plunder the economy and live an artificially comfortable life at the expense of poor and suffering Zambians. Shame. But then typical of your clan you specialise in lying and theft……ubomba mwibala…….
Whatever happened to the faces of these old, spent men. Is it Herpeszorster?
A good and well-argued writeup. Its clear that ABC’s economics are not only out dated and archaic but the fact that he is the Finance Min is altogether an insult to our intelligence as a nation. Our economy is going down the drain at the speed of light. I didn’t like Magande for his hearlessness, but he was an impecable Finance Min. Dr Musokotwane was a genius of international repute. You mean PF does not have intelligent economists to run Min of Finance?
Mr. Sata’s agenda is not the economy but the economics. It was for this reason that he appointed a relative as finance minister; just so they are able to take care of themselves and their pockets well enough. That is economics. The economy is extra curricular.
How many eggs will you take home based on your earnings today? How many chickens will you take home based on your earnings today? How many kilos of sugar? How many bags of mealie meal? How many liters of milk? How many liters of cooking oil? These questions are more pertinent than attacking personalities. The answer certainly is that the purchasing power remains within the same income brackets. Give government time to adjust and fine tune the economic policy and you will see wonders. Infrastructure is not a love affair. Robust infrastructure makes national wealth. Count how many universities in 50 years. Count how many district hospitals in 50 years. Count how many international airports in 50 years. Count how many media houses. The road to prosperity starts here.
You are too naïve. I wonder rather, how many eggs will still be in the nest when PF finally walk away from it? I shudder to imagine that there will be neither eggs left to incubate nor chicks to raise. It’s a trust issue. The phrase: “infrastructure developed” they have coined, is their passport for them to get to where they are going. As for the economy, we all know the direction it is heading – downwards!
Zambians we are enemies of ourselves. Change is difficult to understand , People go to school to LEARN “Managing Change or Change Management”
The CHANGE we wanted. Here it is .
this is March 2014 and we still have seven years more to go with PF,
in two years the kwacha has depreciated from K 4.30 to K6.30 what of in 20……. with PF
Can a kolwestan run an economy? These are just consumers and players of vilimba in the compounds. They have the same behaviour like the congolese.
Yes a kolwestan is running over the cowstan. Let me tell you that the Kolwestan have been ruling well, massive infrustructure which other presidents failed to do. In 2 or 3 years the kolwestan won’t campaign bcoz all will be there for electorates to see. Kolwestans are leaders in everything: football, leadership , economics , science etc. we will keep on ruling you. We are hated like Jews but we will keep on ruling like Jews as long as God says yes.
I don`t think the revocation of SI 33 & SI 55 will help strengthen the Kwacha, it might in a short-term, but going forward I doubt. Lets not forget that PF introduced the SI 33 & SI 55 because the Kwacha was losing value at a very fast rate, just after a year in office. And there reasoning was that by introducing the two Statutory Instruments, investors would be forced to bank their dollars locally, thereby strengthening the Kwacha. But PF got zero results!
The major problem with PF is that because of their tribalism/ nepotism attitudes all the major institutions in Zambia are being run by people who are clueless with no ability to generate smart ideas. As a result the key fundamentals that are supposed to drive the economy are weak.
LT was bought by HH. Its now part of ZWD.
Ask the editorial board..
@Ugly oh lovely
Zonda uzalema, HH is the man. He has absolutely nothing to do with ZWD or LT. He is not like Sata who signs pacts with media houses to back him because he knows that without them his messages would be hollow. Now Sata is busy trying to sign other pacts with ZDW and LT because he has noticed that Mmembe ‘s past paper is finished and does not influence public opinion any more. Unfortunately for him ZWD and LT are not run by buffoons like Mmembe to sink so low as to sign a pact with a mad man.
Namikafya fye HH and you are busy blaming the wrong people instead of blaming you leader Sata for his stupidity .
You’ve got a team like Sata,Chikwanda & co thats been reliant on govt all their lives for daily bread.Such people wouldn’t know how to run a small business let alone how to run an economy efficiently and prosperously.Why do you think they’re relatively poor even after all these yrs in govt? They know zilch about wealth management.
@Mzambia wa zamani
You are absolutely right in your observation. These guys with ukutolafye in government they can not make it in life. Look at Sata, the man was almost finished because he could make his own money outside politics.
The problem in Zambian political culture is you types who equate sutiability for governance with things like managing your own personal wealth and getting rich. You are fundamentally as backward as Bokassa. God help us if HH or similar ever gets hold of the reins
@clutchplate so I guess you’d prefer a grade D student to become your kids teacher or a failed violent drunk to wed your daughter?
HH is a better economic manager than Sata,believe me.
@Clutchplate Banda: How on earth are you able to move around with such a rotten brain?
HH CONGRATULATIONS MR. IN COMING PRESIDENT.
FROM THE ONSET YOU TOLD THEM THAT SI33 AND SI55 INSTRUMENTS WERE GOING TO HARM THE ECONOMY BUT WHEN YOU SAID IT THEY DID NOT BELIEVE YOU. BUT NOW THEY HAVE COME TO ACCEPT WHAT YOU TOLD THEM WHEN THE DAMAGE CAUSED HAS PUT US IN GREAT POVERTY. THE SAME ON NURSES. WHEN YOU TOLD THEM THAT YOU CANT DO THAT TO NURSES YOU WERE CALLED NAMES. NOW WHEN THE DEATH TOLL IN OUR HOSPITALS IS HIGH THAT IS WHEN SOME ONE REALISES THAT THE DECISION WAS BAD. THAT IS LEARNING IN A HARDWAY , PLEASE PF CAN YOU AVOID MAKING SUCH FATAL DECISIONS. LATE PRESIDENT LP IMPROVED THE ECONOMY BECAUSE HIM WAS ACTING ON COMPLAINTS THAT IS WHAT IT MADE HIM TO PERFORM BETTER. VIVA HH, VIVA UPND.
@Chilyata @Sinkamba Wisdom
You are in DREAM LAND.
Do you reckon a right and normal thinking human, could cast a vote for a self confessed tribalism maniac?
The fellow, who in 2009, advised his cadres “to unite against certain tribes?”
He was quoted straight, and he has never denied making the statement.
Why do you think why he could only attract 200 to meetings in Eastern Province before he was asked to disperse?
He claimed he was a victim of harassment, but where is proof? Photos or videos?
I would rather have shortages and vote for infrastructure development than vote for someone who will discriminate against my kids on the basis of their tribe!
Come 2016, you will lick your pride and insults like you did in 2011!
It just shows how much uncivilised and biggotted you are! Like many other Bembas, you must be thinking with your A.r.se up and your head facing down instead for you ignore the reality on the ground!!
If you had any brains at all, would you not be asking yourself why your fellow PF mongrels denied the most popular politician in Zambia at the moment, HH, his right to address his members in Eastern province? HH has a right to consult with his members and to meet them anytime he chooses to. But the brainless Bemba Zombies like yourself are overwhelmingly scared of his soaring popularity! Only on Friday last week did we see another Bemba Fossil Chikanda eating his vomit by withdrawing his own SIs 33 and 55!! Signs of Bemba monkeys not knowing what they are doing!
@Obona: Is it your view that Sata is not :”a self confessed tribalism maniac?” Clearly, you have serious mental issues.
Critical misconceptions are held by most Zambians.
1. That the minister didn’t know what he was doing when he institited the two SI’s
2. That the mismanagement is happening because of the ineptness of the PF government.
The fellows knew what they were doing, they knew that it was wrong, they knew what result would occur. In the corporate world one would call this “insider trading” and they wanted to mop extra local currency from the market. What better way than to cause all the major players to divest themselves of the kwacha by enacting SI 33 and 55. Someone on the side will make a fist full of money within the next couple of weeks as the kwacha regains its parity.
Imagine if you had $100,000 in jan and offloaded last week. Then wait 3 weeks and buy up dollars @ K4,2.
You actually dont make any sense at all! What point are you making or advancing here? You are so confused and cant even explain how they are going to make money, can you?
You can only impress brainless mongrels like yourself with your meaningless quotation of $100k and K4.2 in January – what were you implying?
You are just an egg head or a cross border cross border trader at best. Keep your A.r.s.e closed up about things you dont know!!
So the banks now have to recalibrate their point of sale machines following suspension of SI33? What a reckless cost imposed on the banks by our Govt! It took the banks so much effort and money to recalibrate the point of sale machines so they could process Kwacha only. Now we are back to square one. I would want to take my receipts in Dollars tomorrow. Please I need my point of sale machine recaibrated by end of day today.
What an ***** you are really!! You are sympathising with banks that have exploited the poor Zambians so much instead of siding with suffering Zambians!
All measures taken to stabilise the currency and reduces the cost of living of ordinary Zamnians is good and should be welcomed!
But unfortunately, there are I.D.I.O.T.s like yourself who worship banks for reasons best known to themselves! Basically you are next to nothing but just a casual worker that can be EASILY dismissed if the instability in Forex persists! Use your head to think NOT your AR.SE!
@Chilyata-if your small grains of brains were working properly, you would have known that there was strong opposition from well meaning Zambians and the whole business community to the introduction of SI33. The Govt bulldozed its way through despite all the good reasons we gave them. A lot of things were changed including reprinting of invoices, advertising that we no longer accept payments in foreign currency for any transactions made within Zambia, refixing our salaries in Zambian Kwacha, etc and your small head treats all these things and costs as small matter! Goodness me. The move was not necessary in the first place. Such changes come at great cost to business community. Please woke up.
That’s the problem with imbeciles like you! You retarded jungle mix dont even know what you are talking about – do you? What do you mean by “re-fixing our Salaries (that’s not English)” and what did refixing salaries have to do with SI 33 & 55?
You are just a semi literate junior Bank clerk that is not even worth responding to because of your sheer stu.pi.dity and ignorance!! I am a FaRmer and also have businesses in Zambia [and you may even be blogging from one of my Internet cafes] – so I know what I know am talking about!!
You brickhead should know that the World Trade accepts changes in Govt policy ALL the time and will always cope! Only short sighted fools like you can be worried about reprinting invoices, Adverts, etc when the world can even cope with change of currency! SENSE?
@Chilyata
Cool it mate!
Your repeated insults & reactions of your boss and your fellow colleagues do not inspire anyone.
They reveal deep rooted frustrations & bitterness of a clique from some general election vote count!
I hope you will not suffer a major stroke in 2016!
Only I.D.I.O.Ts like you who DEPEND on politics for survival will suffer a major stroke in 2016! May be you meant YOURSELF or your FOSSIL Bemba President SataN will suffer a major stroke – then may be! Lazy Monkey eaters who live by staeling!!
I am a Zambian and have businesses in Zambia BUT I dont vote and will not vote in 2016! We dont depend on politics like you parasites – end of PF will also mean the end of livelihood!
Tenderprenuer ubomba mwibala………cartel!
99.99% of postings on LT from a leader and his followers are about :
1. uncivilized and
2. imbeciles PF supporters,
3. brainless mongrels,
4. failed violent drunk president,
5. a Grade D president,
6. kolwestans,
7. Good for nothing president and his cabinet,,
8. untrustworthy Lazy Bemba thieves,
9. foolish, i.d.i.o.ts, b a s.ta.rds and arces
9. foolish polish
10. *****
11. Toilet cleaner president
12. Chimbwi without a plan etc.
WINNERS EXALT THEMSELVES INSTEAD OF ENGAGING IN DIATRIBES.
BARELY DO U EVER HEAR THESE UNPRINTABLE ADJECTIVES FROM A WINNING TEAM!
Have YOU already conceded defeat?
Its clear that either Finance minister or central bank Governor; maybe both are incompetent. They have failed to demonstrate that they can apply their knowledge, skills and experience to resolve the countries economic malaise. Implementation and revocation of SI 33 & 55 is testimony to that; its trial and error, shooting in the dark with no clear vision of the target. Gentlemen step aside while you still have a bit of respect; You Know that you have failed and You know that we know that you have failed. Why are you holding on; why obstruct when other competent Zambians are ready and upto to the challenge? We wait to see if you are as honourable as we expect you to be.
Well I was somewaht sure sataN would do Zambia no good but not to this extent! They record -setting in mismanaging pretty everything. Removing RB was good but the replacement is f the same quality only more stubborn. Kwacha free-falling like this as if our leaders are sleeping!
I do wonder if deep in their hearts (if they have hearts) they do not feel that they have betrayed Zambias and are hurting people who employed them. No constitution after 2 years, when it was promissed in 90 days!
Outside the 1991 KK outing, the PF had a flamboyant entry into Govt and dissapointing the citizenly like this may spell doom for them when 2016 ushers in a frustrated citizenry being buttered by a crappy economy
Mr Chikwanda is not new to us. He sunk the Zambian economy together with KK during the UNIP era. He last drew a salary three decades ago and could not put food on the table for his family in a long time. He is completely out of touch with current dynamics in global economics. He belongs to the archives and he will drag us in a black hole. Look at him now, he has suddenly gained some much weight and his face is now smooth. He must give us a break.
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and told me that he shall get back to me as soon as he is through with my work. I was very happy as heard that from him. So Yesterday, as i was just coming from my friends house, Dr idielu called me to go for checkup in the hospital and see his marvelous work that it is now HIV negative, i was very glad to hear that from him, so i quickly rush down to the nearest hospital to found out, only to hear from my hospital doctor called Browning Lewis that i am now HIV NEGATIVE. I jump up at him with the test note, he ask me how does it happen and i recide to him all i went through with Dr idielu. I am now glad, so i am a gentle type of person that need to share this testimonies to everyone who seek for healings, because once you get calm and quiet, so the disease get to finish your life off. So i
Old dogs only know old tricks.