Saturday, June 28, 2025

JCTR encourages the PF government to consult widely and to stop contradicting themselves

Share

jctr

On Saturday 22nd March 2014, the Minister in charge of Finance, Honourable Alexander Chikwanda gave a press briefing on the state of the economy. The press briefing was in response to concerns from various stakeholders regarding the recent performance of the economy particularly with regards to the sharp depreciation of the Kwacha against major international currencies.

It is highly recommendable that the Minister of Finance issued a statement to explain the state of the economy. In the JCTR’s view, the minister’s intervention is timely enough to prevent speculations which have the potential to further destabilise the economy. It was particularly impressive to hear the Minister acknowledge clearly the threat that may be posed by poor fiscal and debt management on the economy. Such press briefings should become regular in order to address people’s concerns and spur confidence in government policies.

Notwithstanding the Minister’s assurances in his address, the JCTR wishes to highlight some concerns in economic management so far. While the Minister assured the nation of government’s commitment to ensuring fiscal discipline and debt management to prevent further borrowing beyond sustainable levels, the recent upward adjustment of the ceilings on both foreign and domestic borrowing levels is inconsistent with the Minister’s pronouncement.

Tightening fiscal policy to ensure adherence to deficit levels of 3% of GDP and the upward adjustments of debt ceilings through parliament seem contradictory. To maintain high levels of confidence in the economy, it is important that the government is viewed to be consistent in both word and deed when it comes to economic policy. The role of policy consistency in economic stability cannot be overemphasized. Economic policy inconsistency sends wrong signals to various economic agents whose response can destabilize the economy.

As part of the measures to stabilise the Kwacha against major currencies, Honourable Chikwanda revoked statutory instruments 33 and 55. Inasmuch as the government has revoked the statutory instruments and initiated consultation, much of the damage already done to the Kwacha, which has increased the cost of living to most households, especially the poor, would have been avoided had government consulted widely before effecting the statutory instruments. In fact, the non-consultative manner in which these statutory instruments (whose intentions were good) were introduced gave rise to negative perceptions about government policy direction which have contributed to the depreciation of the Kwacha.

We therefore urge the government to embrace consultation on key economic policies. If wide consultation had been done before the introduction of SI 33 and SI 55, the current confusion of revocation and then consultation afterwards would have been avoided. Social dialogue with various stakeholders will ensure that interests of all, especially the poor, are fully considered in key economic policy decisions.

42 COMMENTS

  1. Chikwanda and Bank of Zambia governor should have resigned already. The same people who put up these costly policies will NOT have sufficient capacity to plot a new direction!!!

    • Zambia simply needs a new government. PF has failed. Zambians now realise that they made a terrible mistake for voting for PF. Its a lesson to those political parties aspiring to rule Zambia not to lie to the electorates when you have no capacity to rule the coutry like the PF.
      This is a lesson leant and hope Zambians dont make another mistake in future.

    • I am sorry but the PF are doing one good job!

      People must refrain from passing these unhelpful comments. The only party the people wanted is PF, the only party ruling is PF, the most seats in parliamnent are from PF

      The president has embraced democracy and knows that An eye for an eye only ends up making the whole world blind.
      Stop taking him for a ride before he force him into a ‘Mugable’

      Long live Mr Sata

      Thanks

    • Have you noticed that Guy Scott has been silent ever since the firing of Masebo. I believe Guy and Charlotte were very very upset by this decision by Sata(N). I wouldn’t be surprised if they even threatened to resign. PF is a failed party and they are a divided bunch. Most PF cadres on this blog are Sata supporters and not necessarily PF supporters. Sata was only able to accomplish the little that he did in lower portfolios because he used intimidation and fear in his subordinates. This cannot work at Presidential level and this is why he is finding the going really tough. We need new blood, new leadership and radical change in Zambia. I proffer to you HH and UPND.

    • No Brick layer, the only thing we have noticed is that you lay bricks for a living

      Leave Mr Scott’s wife out of your flawed thinking.

      Thanks

    • ba JCT or whatever, sata has inferiority complex and to expect him to consult those that are knowledgeable is like milking from a stone. we see these things amidst our community. you are a graduate and your boss is a diploma holder, he will not consult you because of inferiority. worse still sata is too old to go back to school to graduate from this stigma

  2. great article. the problem is that the message will land on deaf ears full of wax. this government is not a listening government. more damage will be done to the economy in the next two and half years. HHELP

    • My worst fears are that towards the end of the PF tenure, there will be pilfering en masse as they Panga Family realise they will be on their way out. I can not bring myself to imagine what the next government will inherit and the colossal tasks of rewinding and repairing the damage done. Undoing the local language teaching decree, trying to enact the constitution, appointing career diplomats in most foreign missions, resolving the Barotse and Chitimukula impasse… The list is endless

  3. Raising debt ceilings must be understood in the context of rapid expansion and diversification of the economy. Where management skills and demand for passenger transport are available, it is right to acquire more buses than to stick to one bus. It seems that we are talking about two different things here. Are we poor because we misapplied capital or are we poor because we were too lazy to venture? The economic diversification program must be large scale in order to achieve the intended prosperity. The individual can operate low key businesses by the nation can not. The nation is a big enterprise.

    • R U trying to say that fundamentals for “diversification of economy” should be based on excessive borrowings?

  4. Economic management demand for clear, concise and consistent economic policies that is able to give predictability. For investors and many other economic players, this is what they need and many decisions are made from this basis. Furthermore, confidence in different economic actors is built by the way government set policies and manage its economy. Please for once, can you stop try and error and also contradictions in word and deed as rightly pointed out by JCTR. Mr. Chikwanda if you like experiments, become a scientist as for that position, we need an economist!

    • I advise you to read the lecture “Reverse the Curse: Maximizing the potential of resource-driven economies” by Richard Dobbs.

      Perhaps you will then understand who really needs who in this world – and why the international money markets will severly punish our governments with high interest rates, currency devaluation and the flight of capital if they pursue “mistaken policies” , i.e. policies that endanger the growth of western economies.

  5. Too much consultation does not work, especially in Zambia. We will end up just arguing and not doing anything. That’s why we have leadership in place. They should be given space to Govern. Democracy has given us a safety valve just in case they don’t govern properly-ELECTIONS!

  6. If anyone is expecting consistence from PF on policy matters forget. This is a party with people unified by the principle “kulyamo” hence they are capable of saying anything just to keep the public calm, while they stick to their principle of “kulyamo mwibala” . This all fall in place with the vision of Dochi Kubeba, the real issue being PF does not know what it is doing.

    Where is Rev Matele the hard core supporter of PF just before the elections in 2011? What is her position with her beloved party now?

  7. @ Mushota, i respect your views but let me disagree with you a number of points raise. People must refrain from passing these unhelpful comments – what is democracy for then? arent you able to pass your comments too? does it mean only comments that are pro PF are welcome? You are right the only party that people wantED is PF. we dont want them now. the only party ruling is PF – yes they are ruling but that does not mean we should follow blindly – where its prudent to, the most seats in parliamnent are from PF. yes thats true but ask MMD what happened to them also when they thought having manipulated seats in parly is synonymous with majority approval. as things are PF has scored success roads; failed on agric, education, health and democracy mainly because of failure to respect other views

    • Who do you want then?

      Which president before him has not ‘failed’

      In a country crippled with so much DEBT you are drunk with this illusion that we need to spend money on agriculture?
      This country has empowered people, last time I visited zambia, the country has numerous malls, uncountable vehicles, even people that couldn’t afford cars like teachers now do.How is that failure?

      I realise it is difficult to change the mentality of old school people, but whatever you term as success is just a dream that will not been filled by UPND

      Let us give a chance to the PF who despite many setbacks and a failed government they inherited from MMD they are doing their level best.

      Thanks

    • @Mushota sorry lass your definition of development and empowerment are misplaced. Having shopping malls all over and owning non is not progress. Neither is owning vehicles and not being able to produce any nor a spare part is that progress in my world. We have eroded the capacity or us producing local goods. If all these malls are stocked with clothes made in Dhaka or chickens imported from South Africa and you call this progress then I dont know where we are headed. This is exactly why the Kwacha is depriaciating (among other things) because as a country we have no manufucturing base. The trade deficit against Zambia is huge and so we are failing to generate enough hard currency, put simply, we are consuming more than we are producing. I am sorry it would help to diversfy the economy.

    • Mushota (8.1), how far back does your political history of Zambia go? Because Sata was mmd at its worst. So he inherited what he messed up himself and most of the ministers in pf. If you think logically at its worst mmd had Sata as number 3 what more now that he is number 1?

    • Mfumu your analogy is brilliant for textbook reading. Manufacture etc, look Britain was the same in terms of agriculture, the service sector is what they have resorted in following, and even the USA

      The malls, brings KFC, Hungry lions, etc and most importantly employees the locals. These in quantity terms employed this way are no more different from agricultural employment it might bring.
      I think you are looking at things in an old school, regrettably technology has meant a more changed economy that has superseded Agricultural to more modern form of endless technological evolutions.
      You afraid of change?

      Depreciation has a lot to do on relying on one thing (copper) and although i agree with diversification leaning towards agricultural is flawed.

      Thanks

    • Bokusi Wanu Kanele

      I am sure Mr sata has learnt from his mishaps and is a better leader today than he was in MMD

      Even in jobs, to be sacked from one job doesn’t necessarily mean the employee should be judged from that.

      Wayne Dyer once said;
      When you judge another, you do not define them, you define yourself.

      We are all flawed in one way or the other.
      You seem to despise him for the man he was, how about looking at him for the man he is now

      If someone had to FULLY QUALIFY to be a president. Mr Sata and not Nevers and HH would have qualified

      Thanks

    • @ Mushota

      If its true that :
      “When you judge another, you do not define them, you define yourself.”

      I fill sorry for you as identifying yourself with pseudo achievements of past 49 years do not say to much about your intellect.

    • Go away 142

      I have little respect for people who wants to play ‘that game’.
      When I am pushed , I can push back. Not in your case, I will pass, thank you.

      When you have something sensible to talk about, give me a nudge, for now do yourself a favour and ignore me.

      Thanks

  8. Good afternoon

    Reading all this criticism on “inconsistency” of the government, one might think Zambia is the first country to reverse it’s economic policies. Fact is that governments all over the world constantly adjust their policies due to various factors on the global economic market.

    Developed countries show a lot of inconsistency in their policies. For instance, they will give development aid to support agricultural production for export, but then erect trade barriers to deny access to their markets for these products. That is not only contradictory but very hypocritical.

    Of course we have our own lessons to learn but I dont think all is lost in terms of attaining economic growth. Let us learn to foster optimism and demonstrate determination to correct mistakes and move…

    • You are comparing developed countries and Zambia?

      You are also scorning or criticism but you don’t explain where you stand.
      Your point is pointless sir, I don’t mean to be rude, but reading what youre saying makes one wonder what is going through your head

      I hold you in high esteem, I am sure you will agree with me, this was a failed attempt

      Greetings from Glasgow

      Thanks

    • Ba Nine Chale, don’t speak in the vacuum. I remember when I was in grade chakuti I was told that a Cabinet is where gvt decisions are made and there is collective responsibility. Is that the case with the pf gvt? The inconsistencies start from the Cabinet itself. It seems there is no head or tail in that important institution. I am sure that is the greatest difference in the development road plan. Here in the UK all Cabinet ministers speak the same language. Not uyu alanda ifi nababi balanda ifyabo. Let them stop the nonsense of inconsistence then you can preach on.

    • I don’t think I’m scorning, I’m only showing a different perspective in an attempt to broaden the scope of the critics – hence my comparison.

      Where I stand is crystal clear – we have to keep on moving despite the circumstances. If we are really concerned about our development, we must demonstrate it on all levels by putting our shoulders to the wheel and not just finger-pointing. As Zambians we can all contribute through intellectual debate and offer solutions for the way forward – that’s where I stand.

  9. What are we waiting for to fire chikwanda and Gondwe?We have the already tested Magande and Fundanga make use of them,tapaba insoni twapapata it is not everything that was wrong about MMD appointments.

  10. The PF Government is a listening government – That’s why the president instructed us to ignore any constitution talk
    The PF is pro-poor – that why we removed subsidies on fuel and mealie so that the poor spend more and the reach who eat macaroni are less impacted.
    The PF is committed to the constitution – that why we can’t support people who want a timetable for implementation.
    Unlike unruly opposition MPs, the PF respects the national assembly – that’s why we have ignored parliamentary committee’s disapproval of the chief justice and DPP appoitments.
    The President is a man of action – That’s why he is posting statement very day on his facebook page
    The policies are working – back and forth, reverses and reviews
    The PF is committed to freedom of information bill – but we won’t allow…

    • @Mushota

      If you want to rate my posting style you can have a field day with it, i don’t care. I basically brought up more instances when PF have contradicted themselves, in line with the topic under discussion. It is not my intention to compete, just to discuss.

      Thank you

    • Dont read my comments honey

      Sorry it eats you 🙂

      I am here to stay and always have for seven years now.

      Just listening to B-1 great singer, probably best I have ever heard (Perfecto) he is describing me :))

      Thanks

  11. Reconstruction or restoration of nations need massive capital infusions. That is the experience of Germany and Japan. You must borrow, pl;us you must repay. Each time markets fail to respond to incentives, economic policy must be revisited and adjusted , accordingly. The market is a complex whole where rigidities lead to failure. What works, then works. Focus on fundamentals and you will notice a sustained momentous national reconstruction project. Give government enough time to complete projects and then see results. Some utterances are simply libelous and slanderous. What about depressions, slow growth in big economies? These momentary setbacks call for stimulation packages.

  12. Some people are so used to instant meals they even want an instant economy… Good point ba JCTR but lets remember here in Zambia you can consult for 20 years, and today you wonder why the constitution has taken so long, its because of ‘wide consultations’ … lets not be afraid to try new avenues if they fail, we learn and move forward, the Government has withdrawn the instrument for now (which I disagree they shouldnt have) but am sure they have learnt something, some thing are just straight forwad and dont need the so called consultation, because here in Zambia people want the president to knock at their door to ask them if they want a road built to the east or west , thats when they feel ‘government is consulting’ and not forgeting taking them to Siavonga for a workshop

  13. Mushots for once in your sorry little life shut the f*** up and go and continue prowling the red light district in Scotland- not that you would get many takers because hello…you are black!!

  14. @ mushota. Iam really at pains to explain to you what development is. You mistake progress for development. And yes value addition on agricultural produce and products will lift the 62% that are dependent on agriculture in zambia. Its people like you who live very far from mother zambia who I think live in an illusion of western mirage who think in freirian style of education who think we are empty and don’t know what’s good for us. You say I support upnd because I raise the issues I am raising. Actually I voted pf last time and not yet decided on where my vote will go. I quote great men on judgement but fall in tremendous insignificance on the same standards you raise. There are few things pf are doing well but on the governance front they fall far short of what I heard them tell us…

  15. I can see a lot of UPND supporters / sympathizers are at pains to fathom Mushota’s arguments and discussion its very clear from here that most of you are failing to engage her constructively and debate ‘soberly’ a clear sign of bitterness…

    UPND has a lot to do if they wish to foam the next Government and most of you would be so shocked if u carried out a ‘survey’ on the CB and Lusaka to determine your much talked about popularity…. but wish you all the best….POLITICS is about numbers….

  16. Iam reliably informed that we have a PF spokesperson in our midst. This is good and we hope they can take the views of the people to Govt! They are not based in any foreign country so stop cheating people. Its good for cadres to also air their views even MMD cadres stubbornly supported Rupiah Banda to the end so we understand Mushota. But hey the pain of supporting a failing Govt must be short circuiting your thinking lol! It could be Kabimba or Chela or even bamwine behind that pseudonym lol! Naufwa nikaya! The writing is on the wall………!

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading