Former Bank of Zambia Governor Jacob Mwanza says he is confident the economic recession being experience worldwide will short-term.

Dr. Mwanza who is also former University of Zambia Vice chancellor said this is so in that all countries have realized the need to stimulate the economy by pumping billions of dollars to activate the lending systems thereby providing resources for investments.

Speaking in an interview with ZANIS in Lusaka today at the International Airport upon his arrival from Chipata where he accompanied President Rupiah Banda, Dr. Mwanza pointed out that so many remedial measures have been put by countries to correct the recession.

Dr. Mwanza ,a renown economist, pointed out that the financial problems that Zambia was going through should not be blamed on any one because the situation is due to globalization.

“What happens in any major economic leading countries affects everybody. If anything it’s the major financial giants who should be blamed for their recklessness in managing their credit portfolios which ended with no values because they could not be recovered,” said Dr. Mwanza.

He noted that Zambia can not escape the economic recession being experienced world wide especially that it relies on copper exports which have been affected by dramatic drop in prices.

The former Bank of Zambia Governor however said the future is bright because big countries like China will bounce back and the demand for copper will once again go up.

He echoed President Banda’s call for the country to diversify its economy saying the country needs to move away from reliance on one commodity.

ENDS/CBM/AM/ZANIS

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64 COMMENTS

  1. “Former Bank of Zambia Governor Jacob Mwanza says he is confident the economic recession being experience worldwide will short-term.”
    if Powel thinks it might take USA atleast 3yrs for them to startgoing up the lader staedily then i wounder for Zed with our kind or asogoleli

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  2. Kongolaati Mr. HARDKNOX:d
    BTW Mr. Mwanza is right. He is also one of the few intelligent and competent Zambians still alive.

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  3. This is just tribalism support. Old classmates from Chipata met. RB is to blame and the entire MMD for not taking advantage of high boom to cushion us from this impact. This washed out Doctor should just go and farm. What does he have to show for all the vital positions he has held in Zambia. an PhD and title of Dr, plese, Give us a break

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  4. Dr Mwanza or whoever it is is right to say other countries have realised the need to stimulate their economies by pumping in billions of dollars. But what is it that he advised his personal friend RB who he went with to Chipata to do. These people should realise that they are heavily paid to provide solutions and inspire confidence and not just to tell us how we are all affected by the worldwide and how this is not the making of the government that the recession is here. The quastion is what is RB and his cohorts doing about the situation here at home independent of the problems of the other countries are experiencing. What is the home grown solution from RB’s team.

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  5. People should just stop speculating anyhow. What we are experiencing is a situation triggered by Bush’s recklessness. Bush and co. thought by destroying Iraqi, they would have all the contracts and monies to rebuild Iraqi and thereby end unemployment for their people as a way of regaining his popularity. That has not happened and the excessive borrowing they took to fund the war is now affecting the financial markets. This is what is happening and we are all suffering because no one has the money to invest to buy our coppoer. Cars are not selling and guns are also not selling. This is all BuShnomics. Don’t elect people like him also – vote Real people and not comedians.

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  6. Do ZANIS edit these pieces before they are printed or allowed to be viewed by the public? because honestly tuma grammatical errors r one too many mwe!

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  7. What does he mean by “short term” – is that like in Zambia when we say “soon” instead of “now now”?

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  8. Mwanza is right, but as he correctly states that world economies are busy stimulating their economies; what is the MMD doing to remedy the local economy?

    This is time to get some of that reserve money and create jobs through infrustructure building – this will create positive effects on the economy and also have a trickle-down effect down stream.

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  9. 6 Nine Chale.
    I love your presence on this blog but would love to differ with you as to what you mean by saying Dr. Mwanza is one of the intelligent and competent zambians still alive. Did you know that intelligent people are not necessarily competent. Competence is relative and should not be misunderstood in the place of previledged. The Dr can be intelligent but not competent owing with the way he is thinking that thie recession is short-term. It may be short-term in developed nations but not with our weak economy being run by arrogant zombies.

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  10. Kusaphunzila ni ko bvuta sure. Thank God for KK, at least we can understand issues without sulking at anybody. Bwafya sana. I wonder how people like Sata and Chiluba who have no clue about issues live. They just live by hearsay and pretend they understand issues. I pity them.

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  11. We know we are affected by the financial crisis that’s a fact, but we as Africans kaya mwandi nga ni chani limo nda filwa!! We just can’t rise above after decades and decades shuwa look at ASIAN countries many of which were also colonized, we just can’t come up with something that’s substantially ours.
    Globalization indeed also affects we know a county can’t stand as an island but look and places like china, Cuba there are just some leaders who are just able to inspire their people and come up with some results sure you can’t compare them to USA but there’s something there. Our leaders also lack ability to inspire people always on the defense its annoying!

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  12. Dr Mwanza
    We know the economic financial crisis has adveserly affected all the economies.Always remeber that ,it has affected the developed and emerging economies more than least developed countries like Zambia. The Zambia revenue from copper exports are very minimal ,though the significant contributor to GDP,Zambia realises less than 3per cent in layalties.
    It ilogical to attribute bad economic perfomance to the global financial crisis in the short run.

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  13. Zambia is a small economy dependent on copper. Its also a cash economy where most people have no access to credit and mortgages. So in Zambia there can never be a credit crisis or housing crisis because thats become part and parcel of the economy. People are used to it this and the economy will just move on. Even during the copper boom the beneficaries where the big executives and shareholders of the copper companies who live outside. Small crumps of the cake fell to a few people. So Zedians should get used to it after all they voted to keep the status quo instead of change in the elections.

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  14. IF I WERE THE PRESIDENT I’D FOCUS ON WHAT I KNOW BETTER,what has all those years of farming experience taught you?

    Don’t talk to people like you are reprimanding a child who is helpless. it sounds like “Ah iwe na yesa ine ngati ufuna kudya kasakile weka sha!” How can people draw inspiration from this surely? As leaders you just have to be humble and address people like you are listening and not thinking of how to defend yourselves. Food security crisis is also a global thing and its going to be getting worse for sure so. Why can’t government try to really research and come up with an agricultural plan instead of just ‘telling people go and grow food!’ Yes it’s true buti chikambidwe chanu..

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  15. How can the whole of this kwindi like me come up and say the reccession is short-term. Zoona this is a kwindi mweee.

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  16. 19 Mukwa Ginger Brandy.
    How many coutries that consume mealie meal like Malawi, Mozambique and DRC etc are compalining of higher mealie meal prices. We over exported our last years harvest and we allowed smuggling right in our eyes. Why are we fond of putting the blame on wrong things. Doing so is what makes us come up with decisions that are miles away from the problem. We need to start putting up measures so that next time we do not land ourselves in similar situations again. Fertilizer, prices and distributions is also being mis-managed this rain season and we expect to have food security next season. We are in with planless leaders.

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  17. #21 i agree with the point on blaming things on wrong reasons. The global financial crisis is a reality we know for sure, but when it come’s to mealie meal prices especially, govt are hiding behind global crisis. why should maize which is not imported be MOST affected by the global crisis?? that was their error, and they don’t admit that’s their problem. Fertilizer should have been procured earlier but now i think its rather impossible for it to come from 280,000 to 50,000 but govt should still subsidize.

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  18. Dr Mwanza should go and advice RB and not make cheap statements as if we are not looking at other african countries. we know u muli ba ku mawa, in economics there is no wako ni wako. the best failure is the 1 who doesnot try. DM go to the mmd and sell you solutions.

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  19. RB and MMD it be blame.1 the promise made to the people of reducing prices while knowing things were tumbling.2. is the promise made after elections that things affecting other nations will not affect zambia. They lied to people when things were opposite. the extent of their lies made people not to be ready for the trouble.

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  20. cont. from 27 if a lion is eating people and heading towards our city people ask me as a watch man on the tower i tell them cool the lion wont cum when its cums am to blame for lies

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  21. Note to dr. Mwanza – this is not a time to do political damage control. It are not just the big banks that are to blame, but the ‘free market’ economists (Phil Gramm) who deregulated the banking sector. This is the mess neoliberalism creates. Without ‘free market theory’, this would indeed be just a recession. But remove the rules, remove restrictions on what banks can do with people’s money, and you have a castastrophe. 1907, 1929, 1930-1932, 1987, 2008 – they are ALL to blame on the kind of neoliberal policies practiced in Zambia by the MMD.

    For the sake of the country, no more ‘free markets’, ‘deregulation’ and ‘privatisation’. No more MFEZs. No more foreign companies and workers.

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  22. ” What happens in any major economic leading countries affects everybody. ”

    If you have an economy that is dependent on foreign companies and mining only. And doesn’t tax the mining companies so you can actually diversify into agriculture and manufacturing.

    The problem is that the MMD has no vision for an independent Zambian economy. If they do not volutarily step down from power, they should at least try their utmost to get away from neoliberalism and get back to planning at least some part of economic development, and fund that from whatever mining taxes can be had.

    We should sue the IMF for $10 bn in lost revenues because of their disastrous advice to the government.

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  23. DR JM please tell us another excuse that we dont already know this one is quite stale.This potential job seeker is doing what we zambians do best talk talk talk and wen it comes to walking the talk we remarkbly fail.

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  24. Such nonsense! How come we were still poor when they were developed/developing? Pump money in the economy, from where, get real!

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  25. It is very cheap for a Dr. in economics to end at advising us not to blame any one for the crisis. Please offer us solutions, don’t just protect RB after your trip together. We don’t care who is responsible for the crisis, but we want workable solutions. You people are so blind. You saw the crisis coming but went ahead and increased your salaries, offered fertilizer subsidies as if you were using your personal money.

    On what basis is your expectation of a short crisis based? Govts can pump in money but as long as companies remain skeptical and don’t invest, we are doomed. Liquidity is not enough to change investors expectations.

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  26. #36, in global economic environment, what happens in major economies has a direct impact on smaller economies export earnings. Why do you think we all want to trade with China, America, UK, India and all these big buyers? If the major economies have no money to use import materials because their industries are not able to afford these materials. Think of it like a simple food chain in your basic science. So the fact that the American and other major markets have no capacity, our companies will not have any business and therefore, jobs will be lost in most vulnerable companies such as Bwana Mkubwa. So Bush has everything to do with Bwana Mkubwa.

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  27. Dr Mwanza, analysis is not correct. The causes of these problems are neo liberalization policies that have been pursued reckless in Zambia and elsewhere without regulation and oversight. Dr Mwanza cannot say that no one is to blame for the nakedness of the Zambian economy to external economic shocks. We had a decline in copper prices before in the 70s, and yet it took some time before the effects were on the shop floor of our industries. However with this melt down, the adverse effects are immediate because MMD sold all the strategic companies reckless without provisions preventing foreign investors from abandoning the country in situations like this leaving the country defenseless

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  28. Short term indeed! I think that Dr Mwanza is economically outdated. It will not be shortterm at all. So what if the price of copper picks up. How much of the copper proceeds are being ploughed back into our country? What if the price of oil goes up again? We know the ripple effect on the economy. What is being done to stimulate the economy? Others are getting fatter salaries and others are getting poorer. Where are the intelligent young men and women in Zambia. Do we not need a think tank to propose ways of stimulating Zambias economy given our circumstances?
    Be real Dr Mwanza!!

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  29. economical. This will teach MMD to realize the importance of economic security which comes about through state participation in some form in the economy, this is even more so important for us being a developing nation. The blame on the unpreparedness of the Zambian economy to absorb external shocks therefore rests with MMD, they own this mess and Dr Mwanza himself is part leadership in Zambia lacking economic foresight.

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  30. So if no one is to blame for what is happening in the Zambian economy, the country is running on auto pilot. How extremely re-assuring!!!!

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  31. Where is the proof that Mwanza is a renowned economist ? He has never published anything on economics. In fact he is labor economist. The finacial crisis in the world is deep and will last more that a year. How can a serious economist thank that this crisis will be solved by a simple stimulas. This needs a rethink of the world finacial system. Top US economists are grappling with the issue and Mwanza thinks the answers are easy !!!! Please Mwanza read Klugman’s Monday article in the New York times. klugman is 2009 Economist Nobel winner.

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  32. The real reason why people are uncertain about how long the downturn will take is that they are not sure how the new leaders of the G8 will relate to each other. If Obama, as I predict provides the leadership to inspire every one among the G8 that America will not bully them at the international stage, believe me things will change. The real issue here is inspiring confidence in market speculators and that will turn the economies around. Please use your little money and build houses. You will be the eventual winners when the economy turns round. Zambian leaders need to ensure that our industries meanwhile do not collapse during the recession but prepare them for the big boom that will come.

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  33. The problem is that if the minister says ‘no one is to blame’, then no one did anything wrong, and no one has an incentive to change what they have been doing so far.

    Mutati keeps on calling for more foreign investors, Banda thinks ‘there are too many Zambians’ (paraphrasing, but not something you want to hear from government in a time of famine), and Fundanga keeps babbling on about ‘comparative advantages’.

    Tax the mines to the max (in raw materials if necessary), and have a grand plan for expanding agriculture and infrastructure. That way, at least the population won’t starve.

    The first duty of government is to feed the people or enable them to do so themselves.

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  34. But what is our government doing about it it? Iceland was rescued by it government, UK rescued Northern Rock,B&B and America is also doing the same. In Zambia all we hear are job loses and soon it will be Homes breaking up, Please God help RBB cast that sleeping evil spirit in him out and let him see what is happening to our beloved zambia. :((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((:((

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  35. Just jail Chiluba and Xavier that will stimulate the economy. Leave them loose everyone will think Chiluba may come back and they wont invest. Simple.

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  36. Zambians, do you know why we always play monoploy when we travel? Introduce that in your Schools. Economics is a game of monoploy. Buy those games for your children and you may compete with other economies after 900 years. You currently stand no chance, even your economists are just little ponnies in the game. Blame the IMF but those are not your real enemies. Wake up and open your eyes. I give you friendly advice because you paid for my education and i write the reports that decide what IMF and World bank does with Zambia. Just be good listeners and we shall guide you properly. We also have interest in Zambia but we are not corrupt. We simply hate Chiluba and Attan Shansonga. Inonge is fine

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  37. @10,45,The Intelligentia: I love your analysis. Its true the war on Iraq has brought about adverse effects on the entire world economy. This credit crunch thing started right there in America. The person to blame is BUSH!!

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  38. Dr Mwanza this man sounds educated but he not in touch with reality, Someone has to take responsibility on how the Zambian economy has been mismanaged in the last 10 yrs. In Zambia 90% of the Phd holders their thinking and IQ is below a high school dropout in the rural Nebraska towns.

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  39. true that Mr mwanza but i blame Rupiah!!!!! um has anyone heard from mike mulongoti.. im worried coz he aint been BARKING lately lol =)):))

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  40. Father Kwanzaa [95] i am afraid your inferiority complex has become chronic. Which 90% of Phd holders have you tested? If not can you give us some references? Your last sentence is based on ignorance.

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  41. Goverment is to blame,Mr.Mwanza, because they have not put any measures in place to act on it as a country.

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  42. Dr.Mwanza,if U are saying ‘No One is to Blame for the Economy’,you are simply saying’ “Yes,no one is to blame because there is no Leadership”.Bcoz,I believe,Leadership (Government) is Responsibility.Where did you do your Doctorite?

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  43. The govt should shoulder some blame for the effect that Credit Crunch is having on this country. There are massive job cuts in the mines and soon the millers will also be downsizing. We want to demonstrate over the rising unga prices and yet Mpombo is saying that he will meet us with full force. Yeah, the govt will be blamed as they are only good at crisis management, no pro activeness at all.

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  44. Hey fellow bloggers

    I have Decided to Change my name with immediate effect. Reason being, there is another person on this blog who is claiming to be Baby C. Only God Knows why. I love my Nick, but i have no option… Sorry my dear bloggers.

    To the fake Baby C, you can go on and have that name, I don’t care. But ulichipuba!

    Ba Moze welcome back.

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  45. But Doc Mwanza, I do not agree with you. We should save for the hard times like the tuma ants do. Surely there is someone to blame for the state of the Zambian economy. From assessing things, looks like there is gonna be a further plunge..God help us.

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  46. Hi everyone.

    My understanding is that jobs were lost at Bwana Mkubwa because Moses Katumbi banned DRC from exporting copper concentrate, which the mine was processing. Nothing to do with global financial crisis but purely operational.

    Regarding Zambia’s economy, we need to task our govt to diversify our economy in a quantifiable way i.e. set ourselves targets and review the progress at the end of each year. Otherwise we will keep talking and nothing will happen. We need accountable management on diversification.

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  47. “Speaking in an interview with ZANIS in Lusaka today at the International Airport upon his arrival from Chipata where he accompanied President Rupiah Banda, Dr. Mwanza pointed out that so many remedial measures have been put by countries to correct the recession.”
    what was he accompanying the President for?
    😕

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