Finance and National Planning Minister Situmbeko Musokotwane (right) talks to Deputy Minister Chileshe Kapwepwe after he addressed journalists in Lusaka 2
Finance and National Planning Minister Situmbeko Musokotwane (right) talks to Deputy Minister Chileshe Kapwepwe after he addressed journalists in Lusaka

Finance and National Planning Minister Situmbeko Musokotwane has described the classification of Zambia to the lower Middle Income status country by the World Bank as a clear manifestation that government’s economic policies are materializing.

Speaking to Journalists in Lusaka this morning, Dr. Musokotwane said this classification means a reduction in donor Aid to Zambia and increased foreign investment.

Dr. Musokotwane says Zambia will now be able to access non concession loans adding that previously the country had been constrained by concession financing which is limited.

The minister has further explained that the country now lies in the range of 1,600 to 3,975 dollars per capita income adding that the target for government is to reach up to over 1,200 dollars per capita income which is for a high income status country.

And Dr. Musokotwane has said the economic reform process has not been easy for government and that this achievement is as a result of political will towards driving the country to economic prosperity.

On whether Zambia’s classification translates into poverty reduction in the country, the minister says the effects on the average household will slowly manifest adding that even in the High Income status countries, problems of the effect are there.

 

QFM

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44 COMMENTS

  1. Zambians sacrifice through tightening their belts are bearing fruits, now. Thank God!!!! Its time for politicians to tighten their belts too!!!!!!

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  2. Dr. Musokotwane, RB and your friends, i like what you are doing to my country. Its about time we went higher. We don’t need aid in Zambia, we have enough resource, what we need is investment to exploit our resources and reinvest. 

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  3. It’s good that the minister had admitted that the classification does not translate into immdeiate improved household incomes. This has always been the debate: how are ordinary households benefiting from Zambia’s higher financial status? Are more formal sector jobs being created, is poverty being reduced, are social services (health, education,local government, etc) delivering better services, is basic infrastructure improving and is there access to affordable credit?

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  4. The most useless finace minister we have ever had!!! Becareful you will end up in jail. We are suffering and you are smiling and we will be laughing when u a crying!

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  5. You will not will elections because cheap politiking! what DFI are you talking about, do you know what it is? Be honese you are an educated Man.

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  6. And you wanna hadover the country to SATA who knows no ecomomics, you Sambians

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    • That’s the reason why a leader surrounds himself with the best people or best brains, its called a team.

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  7. What useless maths in this report, first he says we are “in the range of 1,600 to 3,975” which is a “lower middle income status”, but aiming “to reach up to over 1,200” which is a “high income status”. Somebody is confused here. Anyway some copper revenues don’t make much difference to the common man

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  8. #7 maybe you should learn to spell the name of the country (or stay in Israel and be quiet)

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  9. This guy is a typical economist he is using jargon even where its not needed just to confuse you…whether you get non concession loans or concessional if there is no transparency, accountability and good governance it don’t make no difference..it even makes it easier for RB and his Crooks to inflate their pockets!!!

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  10. Is that so Dr Musokotwane? here’s a reality check: Reclassification of the Zambian political scene means reduction in dunder-heads like you and your clown Bozo and an increase in youthful opposition leadership. You dirty barstards have outlived your usefulness stinking pieces of hyena sh/it. You are all full of filth and it has led to the rapid plunder of our nation’s resources.

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  11. Zambia’s qualification to lower Middle Income only implies the country has increased in its earnings and this is mostly through mining. But the fact remains of how much of those earnings comes back to this country. Zambia has always been and is still relying on donor aid since it gets peanuts from the so called investment benefits. Just recently we saw what happened at the Ministry of Health, where shortage of drugs became order of the day after donors withheld their aid. This is likely to re occur unless more benefits are reaped from the investment we have which includes introduction of windfall tax on the mines and payment of better wages to those in private formal employment as a result government will earn more in PAYE. Otherwise we are heading for maningi trouble

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  12. A middle-income country (lower or upper) needs very effective systems and a vicious fight against graft. This is because your sources of additional help will be greatly reduced. There are countries in the emerging world that are already grappling with this reality. Having lived in one myself I can tell you it is not glamorous – and like structural adjustment or austerity, sacrificial lambs will be inevitable. Other than that, I hope this will translate into systemic discipline, both fiscal and macro. Also bear in mind that the Eurozone and other industrial countries are running out of cash to help so they will accelerate promotion of countries needing their help even when it is unwarranted.

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  13. Shimaini you started well but ended up with hogshit. When are we as Zambians going to stand up on our own. If you attract alot of foreign investment your economy is bound to improve. Look at SA FDI has developed that nation since the time before you were born. Look at Botswana do you think all those manufacturing companies are local no no no once the economy stabilises do we see even unemployed getting paid .Zambia will get their if we keep our leaders in check but if we vote for leaders like Masebo wh has missed the ministerial portfolio the first thing they will do is to enrch themselves ba sakala remember teta and hearses

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  14. We appreciate that the policies implemented by governement are working but can we please have transparency and accountability. Ensure that every kwacha and ngwee from investors is reinvested back into the economy. And also as governement reduce on those workshops and seminars so that we all partake in the national cake.

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  15. All these clasifications are meaningless and useless if the common Zambian does not benefit.

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  16. This Musokotwane guy is a joke. He does not understand the important negative implications this declaration will have on our nation. His cell must be prepared in Mukobeko for abaiting corruption in all government institutions and doing nothing about it.

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  17. I dont blame these guys. they think they can politicize such a big issue. If I was world bank, Zambia should have been ranked amongest the to 10 poorest countries in africa. Mukaponoka bamwana mala. wait for elections!!!!

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  18. Dr Musokotwane stop misleading the public for political gain.Yes,GRZ has been talking and trying to woo investments into zambia and tweeking its economic policies.Even KK did that when zambia was down and out and not much happened.The single most important factor in this rise in per capita income and reclassification of zambia is the appreciation of copper prices not due to your deft management of the economy.Even badly managed economies in Africa have seen a rise in per capita income.

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  19. “Dr. Musokotwane says Zambia will now be able to access non concession loans”

    That is all MMD know. Borrowing uncontrolably because that is were they steal from. You are a selling and borrowing GRZ, that is why you priside over a 80% unemployment record. For building shopping malls and stocking them unashemedly with “made in SA” you are the best in africa.

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  20. An average ‘northener’ is happier with low income staus because it attracts hand-outs, thats why this is not good to all Zambians. The culture of receiving has destroyed the motivation to work hard for some citizens ,unfortunately…..

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  21. I am not an economist but if someone gave me these figure in the statement
    “The minister has further explained that the country now lies in the range of 1,600 to 3,975 dollars per capita income adding that the target for government is to reach up to over 1,200 dollars per capita income which is for a high income status country”.

    I feel like something is awfully wrong or someone is not telling the truth about our nation development and per capita. How can you lie in between 1,600 and 3,975 but you are targeting a lower per capita? Very illogical. So, this is just a classification, but it means nothing for most Zambians. Nothing to excite even an average worker in Zambia. What a shame ba Minister.

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    • Kalos totally my thought maybe its some secret economics formula with a buit-in deccelerator! The minister is saying the reclassification will result in loss of donar funds (so no budget support (+60%?), no funds for health, education, environment, roads, etc- Dutch and Danish embassies closing!). No access to concession loans but we should be happy because we will have access to loans at market rates (meaning increased debt burden, IMF, Structural adjustment, etc)! Added to that poverty will remain the same because even countries with higher classification have poverty issues. What kind of nonsense is this Hon. Minister!

      I think you are trying to sell as a sack of rotten fish sir!

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  22. @ Jojo, Shaka OZ, and Mwaba. I am glad you are happy with developments in Zambia! I am just a simple Tree Hugger in Mwinilunga and don’t understand all this complex economic reasoning, perhaps you will be so kind as to explain to me. The Minister is asking me to be happy on my new status but also says this will result in loss of donor aid (there goes budget support, road funds, health, education and environment support), who will pay for training of beekeepers in my area, organic certification of our honey, etc. The investors come in to buy not to build the production base! I know I can not speak for the whole country but my village and fellow tree climbers if the Finish and Norwegians stop funding will the Minister get a loan for us and will the economists pay it back too?

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  23. I JUST FOUND OUT THIS WHOLE THING IS OVER HYPED. why WOULD mUSOKOTWANE BE USED TO OVER HYPE SOME MEANINGLESS IMF RANKING AS IF IT WILL SOLVE THE MULTITUDE OF PROBLEMS WEIGHING DOWN THE ZAMBIAN POPULATION. IT IS SICKENING THAT TH ESE POLITICIANS COULD TRY TO HOODWINK US INTO BELIEVING THAT SUDDENLY THE IMF HAS SOLVED ZAMBIAN PROBLEMS?
    THIS IS HYPOCRITICAL AND INSANELY CRUEL.

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  24. Kind of funny how Musokotwane would think this ranking is sustainable. To me it is not because this corrupt government is simply not collecting enough taxes from the Mining sectors and wonder how they will manage to service other economic sectors without donor aid. Maybe it’s one way of saying enough is enough by the IMF and are fed-up of providing donor aid to a corrupt regime which gets stolen all the time. This year KUYA BEBELE Ba KOLWEEEEEEEE

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  25. Most donor aid comes with strings attached and is mainly directed toward health and general welfare, this is indeed greatly appreciated. On the other hand is new status gives us more flexibility to acquire funds for capital expenditures e.g. rural roads, dams and power generation (long term projects). Who better to develop this country than Zambians themselves? I know this is election at least acknowledge OUR achievements. God bless you all.    

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  26. ” The minister has further explained that the country now lies in the range of 1,600 to 3,975 dollars per capita income ”

    Which is a joke when you have massive inequality of income. In other words, when all the money goes to a tiny clique, and 40% of the population is malnourished.

    If every Zambian earned even between $1600 and $3975 a year, he would be a hero. In reality, this is just playing games with numbers.

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  27. ” On whether Zambia’s classification translates into poverty reduction in the country, the minister says the effects on the average household will slowly manifest adding that *even in the High Income status countries, problems of the effect are there.* ”

    In other words – screw you. Like the Finance Minister said before, there will be no significant reduction in poverty for 30 years, following these policies.

    It’s time for a change.

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  28. This classification is just in figures, it is the old “Penza-nomics”. The real classification should be based on the poverty levels of the people especially in rural areas. Trouble for our exporters, tariff levels will have to change as most of the abazungu farmers particularly those involved flowers will no longer see the benefits of farming in Zambia for exports into Europe or even in the US. One wonders if we shall continue to be members of AGOA now that status has changed.

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  29. anyway, donors have planned to reduce their aid because of embezzlement in the ministries of health and roads, Canada even suspended health aid to Zambia

    Muso !! where is the money ?!

    a country in which 70 percent of Zambians live on less than $1 per day is becoming a middle income status country !!?? LOL

    Muso is an economic crook
    collusion with foreign companies : windfall taxes scrapped, low minerals taxes, transfer pricing / tax heavens
    Rupiah who prevents zccm from recovering $400 million from kansanshi mining and has declined to investigate Mopani’s tax affairs despite calls from development charities and thus State and zccm are despoiled

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  30. Mopani Copper Mines plc is majority owned by Carlisa Investments Corporation, which is incorporated in the British Virgin Islands. Carlisa Investments Corporation is jointly owned by Glencore Finance (Bermuda) Limited (81.2%), a wholly owned subsidiary of Glencore International AG; and Skyblue Enterprise Incorporated (18.8%), a wholly owned subsidiary of First Quantum Minerals Limited (the parent of Kansanshi)
    copper from Mopani is sold under a contract with copper in one instance being sold at 25 per cent of official prices at LME. In other words, they are not paying taxes over 75% of the copper sold to Glencore.

    And Muso the crook talks talks… but takes no action on mines fraud and needs to borrow money to make ends meet

    Those crooks must be kicked out !!!

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  31. @31,32 mocco, please don’t expose your ignorance here. most of the issues of perceived or real tax evasion by mining companies is already being addressed through the international ngos initiative known as extractive industries transparency initiative to which zambia is a signatory. recently a member of eiti was on znbc radio 2 explaining how the initiative works and its achievements so far. but then you may be one of those illiterates who shun znbc because all that you want to hear are 90 days pf slogans. but if you are an ignorant illiterate please respect professionals like hon musokotwane, he is among zambia’s best brains, ask mr sata.

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  32. the amount of ignorance peddled by some zambians as facts is mind boggling. this evening i heard muvi tv quote the latest millenium development goals report, where muvi condemned zambia’s record as poor because the country is not mentioned among a list of countries mentioned as best performers mdg #2 universal primary education. i did a quick research this evening and found that either muvi tv did not read the report, or read and did not understand the presentation, or they are just peddling lies, but more likely it is sheer ignorance and a lack of ability to read and comprehend professional reports before opening their mouths. here are my findings: (1) look up millennium development report 2011.pdf on the internet and read for yourself CONTD

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  33. (2) it is not possible to mention the performance in all countries, the report has selected some for special mention, e.g. “In other countries, such as Cambodia, Liberia and
    Zambia, most out-of-school children will be attending
    school at some point in the near future. CONTD

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  34. Nevertheless, some of the poorest
    countries have made the greatest strides since 1999.
    Burundi, Madagascar, Rwanda, Samoa, Sao Tome and
    Principe, Togo and the United Republic of Tanzania
    have achieved or are nearing the goal of universal
    primary education (with an adjusted net enrolment
    ratio above 95 per cent). Considerable progress
    was also made in Benin, Bhutan, Burkina Faso,
    Ethiopia, Guinea, Mali, Mozambique and Niger, where
    net enrolment ratios increased by more than 25
    percentage points from 1999 to 2009″.

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  35. (3) the report covers the period 1999 to 2009, on the other hand zambia has seen accelerated schools building programmme in the last two years, so zambia’s performance up to 2011 will be captured in next report and is likely to be very good. (4) if muvi tv can read the graph presented they will find that zambia is at #9 (similar to ghana) among the countries mentioned, the worst is mali at #23 and the best is brazil at #1. (5) the measures are children expected never to enter school, expected to enter school, and dropped out. the numbers are as follows mali (94%, 4%,2%), zambia (18%,72%,10%), ghana (16%,74%,10%), brazil (2%,78%,20%)

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  36. morale of story? even private media like muvi tv may not tell the truth, the main reason may be an illiterate journalist failing to read or understand a report, or too lazy to read such longish reports, or failure to interpret complex graphs and statistics, or just a desire to misinterpret and misinform people for their own political ends. watch what you read, do your own research, do not be too lazy to read and research like our pf colleagues whose only source of “information” is the post.

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  37. ” most of the issues of perceived or real tax evasion by mining companies is already being addressed through the international ngos initiative known as extractive industries transparency initiative to which zambia is a signatory. ”

    First of all, tax evasion is not ‘perceived’. Second of all, it is not being dealt with, through any EITI or other transparancy initiatives.

    With reduced access to donor aid, is the Finance Minister finally going to talk about collecting the taxes owed by the foreign mining companies?

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  38. Rubbish Bin (RB) and Musokotwane will never talk about collecting any taxes from this curtail of Mining Companies under Glencore and First Quantum. Other Mining Companies belonging to the Indians and Chinese know that Rupiah is corrupt and involved in this curtail that they dare not pay. Tim Henderson (Mopani ED), is a crook who works with Rupiah the reason Rupiah is scared to go. Whether he likes it or not Rupiah and MMD will pay, as we unearth all skeletons in there closets.

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  39. Mocco,

    ” with copper in one instance being sold at 25 per cent of official prices at LME. In other words, they are not paying taxes over 75% of the copper sold to Glencore. ”

    Actually it is worse than that. By selling copper to it’s own subsidiary at 25% of market value (near or below their breakeven cost), Mopani makes it look like it made no profits at all, and don’t pay any taxes or dividends at all.

    Glencore AG: crooks
    Tim Henderson: crook
    Musokotwane: crook
    The Zambian people: victim

    That is what is going on.

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