OFFICIAL STATEMENT
FOR IMMEDIATE RELEASE
31st MAY 2014
HAKAINDE HICHILEMA ON The Falling Kwacha
The continual sliding of the Kwacha is not only an indication of the PF’s failure to run the economy, but it actually borders on economic sabotage.
It is unacceptable and embarrassing that since PF took over power in 2011, our currency can today be on free fall where it is always being declared as the worst performing currency in the world, as if there are no people running a government in place.
The excuse being given that the weakening of the currency is as a result of low copper prices does not hold water because the metal prices are way still higher than 2000s when the Kwacha was still doing better.
To cure the situation, the PF must first accept that among the reasons for the depreciation of the Kwacha are careless policies and wanton expenditure that are having a telling effect on our fledging economy.
By deciding to tie all the revenues and borrowed money into infrastructure, PF have made our economy consume more than it is producing to generate more wealth.
Also other than the poor policies such as the introduction of statutory instruments 33 & 55 that killed our monetary policies, PF are also not generating enough revenue from the few productive sectors of the economy.
As UPND we insist that the Kwacha fall can also be arrested by introduction of proper tax on the mining sector such as windfall tax.
As country, whereas we need investment infrastructure, there is also need to heavily release money for the manufacturing sector so as to reduce our heavy dependency on imports, and therefore create jobs.
With the free-falling Kwacha, we have consigned our small scale businessmen such as cross border traders, motor vehicle parts dealers, those young men and women who make a living selling fruits and other imported items such as toys in our streets and roads to perpetual poverty.
At this rate, the prices of fuel, basic food prices, fertiliser and other agriculture inputs will continue going up thereby increasing the cost of living for our people.
Hakainde Hichilema
UPND President
We need a firm tax collection system and windfall taxes have to be re-introduced. We also need a highly qualified economist (like Mr. Jacob Lushinga) to head the Bank of Zambia.
Hakainde, Please tell these monkey eating and Rat eating brothers and sisters of mine that its not about Pride, Talk, Show, Eating Shitting and F.ucking but about knowledge to do what you are qualified for like running an economy. This place will be out of control into a worse than what Zimbabwe was like when the price of a chicken was 5millio dollars. Its like there no more senile people in Zambia living there to think sense. What is going on. 7.5 or 7500 for a dollar and every one quite. Shit its madness
@ Kabova like your name sounds its not about one man running a key institution. pure monkey eating animal thoughts that have the country on its knees now. Its about a system collapsing and the governance system has collapsed due to having talking, showing, children fuc.king people in control with no idea.
Its about what you know and are qualified for. Listen to this man and don’t think about what is in your pants first like monkey eating and now rat eating greedy people. Please the only remaining Zambian Senile people if your are there save your country. Yes we bailed but still the heart for our old home.
It is not the fall of the Kwacha that needs to be ARRESTED, it is this PF and the CL0WN in state house hospital that CAUSED it to decline that NEEDS ARRESTING!
Put them all in jail and the Kwacha will bounce back WITH IMMEDIATE EFFECT!
It can be solved by releasing part of that privatisation money you stole into circulation.
I agree. Now that UPND have MPs, please move a motion to reintroduce Windfall tax; as Kalala explained in the Post a week or two ago. Always provide an alternative like you have done. Well done.
For sure the Economy is xonsuming MORE than it is able to produce. Its a bad situation in Zed.
Thanx HH and the Zambians who love Zed.
I do not know how you approach and solve a problem in Economic circles, in Engineering circle we identify the problem which will automatically give us a line of remedy. But before we fit the new part or do ‘repair’ and ‘switch on the ‘plant’, we investigate and eliminate all possible root causes of the problem….. otherwise you will end up in same situation over and over.
In this case we have the following…..
Problem……free falling kwacha, high cost of living….long list
Possible remedies…..windfall tax, revocation of SI 33, 55, high export verses low imports, good policies, political will, Leaders integrity…. the list is long
Now what is the root cause?…the list is also long but there are obvious ones…Finance minister, BOZ Govn…bench them period….
Mr. Engineer: All systems work the same way as you describe how you fix an equipment. I medical terms, we take history, physical exam, diagnostics, treatment and prognosis! I think what you said fits pretty much the same, and economics is no different even if I am not one…, at least I run a micro-economic platform in my home, which is sustainable from where I am. Let’s put folks and systems that will use analytical principles and remedy the mess in Zambia.
”As country, whereas we need investment infrastructure, there is also need to heavily release money for the manufacturing sector so as to reduce our heavy dependency on imports, and therefore create jobs.”
Please shed some more light on this idea!! Is it through the IDC or what? We are all feeling the effect of the kwacha fall and good suggestions should be welcomed by the government. Equally the government should be encouraged when they are doing something beneficial to the nation.
We should start from the point that the copper is ours collectively – it doesn’t belong to foreign investors, the finance minister, or the president.
As such, it cannot be sold by them if it shortchanges the public interest.
There cannot be any lack of transparancy, when it comes to attracting foreign investment – if that’s necessary at all, look at the Anil Agarwal $25 million to $500 billion a year saga, any Zambian could have done the same thing. Or signing ‘development agreements’, or international trade deals.
The problem I have with the UPND, is that it too is internationally recognized as a (economically) liberal party. I’m waiting to hear their denouncement of the IMF/World Bank, free trade, etc.
Listern “Educated men are talking,” Not these pathetic f.ools who have no clue what so ever when it comes to the economy.
I don’t support PF but, sorry bwana what is contained in the “Educated man’s statement” is shallow analysis and will not solve the pertaining problem. He is just politicking.
Very sketchy and skewed! In 1991 we ushered in MMD to fix the rot that, UNIP’s 27 years of forged democracy left behind. Two decades later, MMD itself was rotten and broken. We found a strongman, the King Cobra, Michael Sata and his PF to fix and clear MMD’s clutter.
But even as he was walking in to take hold of the reins of power, the strongman himself was on a limb. The ever alert media noticed and gave us notice. The man was falling and collapsing everywhere he went. But we dismissed it as unfounded fear. Now, even before completing five years in office, our strongman is clearly vanquished and broken and the country is going broke. And now we are back to the drawing boards again. Shame on us!
The dollar is jst strongeer all major currencies are suffering its not only the kwacha secondly the demand for the dollar has increased due to the importation of raw materal for the many project underway. Windful tax welcome …and si 55 reintroduction even dodia mentioned it.Good luck Zambia.