Former Finance Minister Katele Kalumba has described government’s issuance of the US $1 billion sovereign bond as a risky but bold move.
Dr. Kalumba has observed that much it is a sign of confidence in the Zambian economy that the sovereign bond is said to have been oversubscribed, it is important that government through the Ministry of Finance and the Bank of Zambia ensure that the bond is not hijacked by whom he has termed as peddlers of the vulture fund.
Dr. Kalumba, who was Cabinet Minister under the Movement for Multiparty Democracy (MMD) regime says government has to ensure that whatever bonds that it puts on the market must be redeemable in accordance to the rules of international financial Market.
The Former Finance Minister has proposed that the Zambia government can take stock of what happened in Asia where there was a collapse of the financial system because of same vulture funds where private companies bought public loans such bonds and wanted to redeem them on higher rates.
He says this is the part where the country ought to very careful to ensure that investments arising for the issued the US $1 billion sovereign bond are managed properly in order that such investments is able to yield outputs that will allow the country to redeem the bond.
Dr. Kalumba says this means that the country needs to invest intelligently in areas of the real economy that can catalyze productivity that will enable the country to earn foreign exchange.
He has further suggested that at this end President Michael Sata should call for a technical roundtable meeting which should be attended by officials from the Ministry of Finance, Bank of Zambia and other stakeholders from the financial sector and informal sector.
He has told Qfm news in an interview that it is this technical roundtable meeting that should discuss which sector of the real economy are not doing well so that such gaps are closed and that investments is made in areas where there will be multiplier effect in order for the country to produce enough to export to redeem back the bond.
What investments? This is money for consumption. They have already run out of money to pay for the overstaffed missions abroad that are full of their relatives. Better start advertising your ‘medical services’ to these PF guys because come 2016 they will be on the run.
These witches have the boldness to say rubbish.Thank for the lovingkindness of God that He sent His begotten Son Jesus
The money is for consumption, fattening useless MPs and ministers, the reminder to pay thugs to terrorize opposition leaders and land owners in the farms.
I don’t for one second trust Katele Kalumba’s seemingly neutral voice on such a contentious issue given that no tangible result has come of the first $750million bond issued over a year ago.Its been looted and no would dare stand up and say so, least of all Katele Kalumba.I assume this man has a better understanding of what the country should expect from such loans but would rather beat about the bush just in case a surprising appointment comes about.What a shameless job seeker you are, Katele!
In short invest in export oriented products such as flowers,and precious minerals.but with pf they have already started giving it to their cadres and claim that they are defectors.
Kalumba another expired analyst comes on board.Where in the world can you boost of borrowing an overvalued loan of 8.5% and you are proud of that.
Any way in Bemba kaloba is part of your life and no wonder we have such motives.
If the government has failed to account for the $750 we borrowed last year what surety is their that this will be put to good use.
Thank God this government is 98% of one tribe so that next time the world will judge the Bembas as masters of kaloba who know nothing but borrowing,.
@sudab, Your hatred for bembas makes me never to vote for your under 5. What intelligent guys does UPND has that PF doesn’t have? You are full of envy for PF. Even 2016, you will kiss the dust. PF will win with a landslide. Look at the massive infrastructure taking place. You I.d.iot.
Iwe chi sudan just debate the issues raised and forget the tribe issue. Have you seen anything concerning tribe in the words of Kaka?
The master of the disappearing acts
Kapele Kalemba is a double edged sword, a corruption case convict who should not say anything about the economy. What is braverly about borrowing when you have no idea about how you are going to pay back. That’s why you stole so much money from treasury as Finance Minister. You are now speaking sweet on Sata so that Ukwa can pardon you against your conviction. You traitor.
let us not be petty…lets go for substance n objectivity…if he is a wizard, let him be!..but if his knowledge is of use to our nation..i think we need not look at his wizardry, but his knowledge..!!!!..i am so much in agreement with bakalumba, especially on the idea of coming up with a committee of experts to give direction as 2 where we can invest the loan, especially in areas that can increase productivity….
our president needs to listen to this, he does not need those ministers nor the pf to advise him..let him call upon those experts in managing the real economy 2 do so.
Except that the committee should not be another one for allowances from the bond money. Too much allowances lead to rat style chop off from the bond, into bottomless pockets feeding beer drinking and hotel life for committee member. If the objective for committee members would be allowances, the objective is lost.
There was actually a time that I thought Katele Kalumba expressed rational views.
Spend a good chank on agric and manuf industry
The funds will go to accelerated rapid infrastructure development because bad infrastructure was a scandalous rip off. We need hydro power and proper transportation, including a national airline.
Obviously as a doctor you realise that the aviation industry is in turmoil due to heavy carbon taxing and the price of fuel. By the way I saw a plane for sale for a mere $200 million but the fitness was expired. It even came with a kaponya for conducting purposes. I believe the pilot had a valid driving licence….but you should see the stewardesses. At altitude it turned into ubwato. But seriously….ati Dr Noufcake…please spare the title and use the brain.
That awkward moment when people like Dr katele kalumba start to sound intellegent
Falling on deaf ears — I’m sure this money has already been spent.
As long as a bail out doesn’t come from a certain Central African country’s coffers. In which case Zambia will be trully and irreversibly wrecked. Favours for help with paying defaults on defaults. ..that would be another way of pocketing. What with the lack of basic arithmetic in counting how much copper and minerals is leaving the country. ..auditing it would be a nightmare….and hence laundering is achieved.
Its like giving thousands of dollars to a grade 7 drop out relative and hoping something tangible will come out in being self sufficient.
(Brains + funds) x God fearing = prosperity