Former Finance Minister Katele Kalumba has observed that the decision by government to revoke Statutory Instruments 33 of 2012 and 55 of 2013 creates a short term confidence in the country’s economy.
Dr. Kalumba’s observation follows the Kwacha’s continued depreciation after its minimal gain against cumulative currencies preceded by the revocation of the two Statutory Instruments.
He says the positive economic sentiment that was created in the economy by the revocation of the two regulations is what the market was responding to as the move was perceived as a sign that government was listening to the concerns over the two legislations.
Dr. Kalumba has told Qfm news in an interview that it is however important that this positive economic sentiment is sustained.
He says this can be done by ensuring that there is a clear line of action on budgetary issues with respect to understanding the underlying economic aggregates that are pushing the economy in terms of the nature and magnitude of its reaction, and where government ought to act to fulfill its broader economic goals without creating a crisis in the financial market particularly through borrowing.
Dr Kalumba has also advised that in view of the fears created on budget deficits owing to major capital projects being undertaken, there is need for government to assure the market that there is capacity to act on the economic aggregates in the way that it will be able to pay back the loans that are emerging.
And Dr Kalumba further observes that there is also a role that the Central Bank can and must play in close collaboration with the Minister of Finance to create a broader confidence in the economy by setting up some behind the scene consultative groups with key stakeholders.
He recalls that this is the same scenario he found in July 1999 when he was the country’s Finance Minister when it was decided to restructure the national budget on short term to have a positive out turn at a time economic indicators were showing negative potential out turn as it was in 1998.
Dr. Kalumba explains that by restructuring the national budget on short term, government can create certain positive sentiments by addressing the areas where the business community feels government is over stretching in terms of public expenditure.
Dr Kats I think you need more than economic sense so fix this situation. Your disappearing acts and also acts of hiding behind a 50 cm high bush can come in handy to these guys.
Why don’t you please scare the hell out of them to show your seriousness.
We need the magic now to save us.
God bless Zambia
Exactly what was in my mind..hahahaha
Dr. Where are you resurrecting from? I hope your comment is an indicator for sympathy from PF. You need to join progressive minds. Knowing you as my Professor i expect you to help Zambia pout of this drama by joining progressive parties and not being part of this drama going on. I know how intelligent you are but please not another mistake of going to bed with these failures. I do n ot want you to be insulted ‘Ulichipuba’ in front of us your former students. It is a wrong breed for you to join no mater how desperate you might be.
Kalumba is rather confused and not quite sure of what he saying! Infrastructure development in PF are just schemes to steal money.
Investors have noticed that the Zambian economy under PF is a big SCAM in which Mulenga SataN and his father are stealing publicly and their investment will be the next target when the Govt cofers are empty.
Investors are not so DAFT like Zambians – they know that Serious Fraud is taking place when the biggest Government Department, the RDA, is being managed from Christine Kaseba’s bedroom – with little access by controllling bodies like Auditors and the public in general!
How could the opposition and parliament allow this? JUST STOP STEALING and the Kwacha will stabilise – Nothing to do with SI 33 and 55!
Constructive comment? Check!!
So you think the revocation of Statutory Instruments 33 and 55 will create a short term confidence in the country’s economy? It did. For TWO DAYS. Now the Kwacha is back on the slippery slope to nowhere.
What is needed to create confidence in the Zambias economy is serious, committed government that defines its economic policies, and sticks to them.
What we have now is a bunch of PF clowns appointed through nepotism and patronage who cannot even agree amongst themselves on which direction the country is headed!
DRC has overtaken Zambia in copper production. Why?
Investors are leaving. They are not going to risk their funds in a country where the President at best is a poor excuse of a joke, and at worst an ignorant illiterate *****!
I remember being savaged when I pointed out that the SIs were not the cause of the slipping Kwacha. It would be nice to hear what the protagonists have to say. In fact we should have maintained the ‘deal-in-Kwacha’ instrument with a twist, if anything…my two cents.
It is not just the content of the SIs that is disturbing our economy, it is the absolute arrogance of introducing poorly thought out legislation without consultation or examining their consequences and effects!
This is wake up today and rename the airports syndrome! A country cannot be run like that, it needs consensus on a long-term PLAN.
Which Sata and his PF have still not provided, even TWO and a HALF YEARS after the election.
The chaos on the CONSTITUTION is a prime example of that!
Confidence? Confidence in whom or what?
How can you have confidence in absolute lack of fiscal policy, inflation statistical data which does not make sense, directionless cabinet ministers contradicting each other on regular basis, uncontrollable budgetary deficit and Government wasting time on childish politicking.
From where “confidence” will emerge?
..just like we revoked the SIs, let us also be bold enough to reverse the re-basing of ZKW(‘joking’). On a serious note, we don’t seem to be a serious lot when it comes to serious economical issues. We behave like children in a home who may not care how they use electricity or water even food in the home because they know parents are there to sort the bills just as we know international funders or lenders are there to our rescue. Other countries e.g UK, if a pound fall just by a penny to a Dollar, an emergency meeting for all stake holders is called in…something which we don’t do. If you go to currency converters on internet, other currency will convert (to a dollar) within a second bcos they change after a while but it takes a minute to convert ZKW bcos it changes every second
That is why people are crying.The President has too much power to decide lierally as he pleases.How can you vest all such much power in one individual?The comment about RDA.So the President can just wake up and say ministry of finance or DEC will now be based at state house.To raise money for campaigns dont be surprised if we hear that RATSA will now be controlled from state house.Actually looting government coffers is what is weakening the kwacha.Projects through which huge sums are being stolen in broad daylight.and parliament is quiet.oh they are all useless as satana says!
I thought Katele was in Jail? What is he doing outside? And where did he learn his economics? This man is a Psychologist just like his friend Bwalya N’gandu. In Zambia we have too many self assigned economists like the Oliver Saasa’s of this world. The secret to a strong kwacha is to work on exports. But if you have people that do not know how to expand exports, how can the country develop. Sata has already said, he has a useless government manned by useless Ministers. The next president of Zambia should be an economic manager. We have tried a Lawyer before (Mwanawasa), labor union (Chiluba) , Diplomat (RB), Teacher (Kaunda) and Kaponya (Sata).
I think you are right. There is a BIG SCAM GOING in State house. Who can honestly trust such a House. !!!!
@Kalok: you are right. We should have maintained SI 33 and I think to a large extent, SI 55 only needed modifications. We do have so many countries as an example where day to day transactions are purely in their local currencies. Depreciation of the Kwacha has to a large extent something to do with the way the ‘outside” world perceives our Govt. You may not agree with me but the truth of the matter is that even the cadres and their pangas and also the way the Police works affect the Kwacha. Calling each other useless MPs/ministers and the ever contradicting statements from Govt officials has also an impact on the economy.