By Hjoe Moono
13th January 2015
Almost a year ago, I wrote about the rather disappointing choices of Mr. Sata with regards his economic management team, particularly those entrusted with dealing with macroeconomic and monetary policy at the Bank of Zambia. I argued, and still do, that the choice of governor of the central bank is a very critical one for monetary policy and in inspiring confidence in the financial markets and the economy at large, and that Mr. Sata’s choice was rather misplaced.
We stated that what is/was needed at BOZ is a competent macroeconomist with appropriate experience in policymaking to be appointed as the governor and likewise deputy governors too, allowed to function professionally and then held accountable for the formulation and conduct of monetary policy to control inflation and promote private sector investment and economic growth in coordination with fiscal and exchange rate policies. We argued, and strongly so, that a submissive governor and an ineffective BOZ do not serve the national interests that even the PF have at their heart and that the real test of the PF-government will be beyond the qualifications, calibre and competence of its governors at the bank—but that it will be their performance in controlling the volatility of the kwacha and keeping inflation at the government target level while promoting growth and employment. Alas, the kwacha has been volatile and has continued to depreciate with inflation targets missed, a clear signal that all was not well at BOZ.
Today, it’s with extreme happiness that His Excellency Edgar Chagwa Lungu has stepped in to correct this error by appointing a competent Macroeconomist, Dr. Denny Kalyalya as Governor of the Central Bank of Zambia. The choice of Dr. Kalyalya is indeed a good one, and his experience in Macroeconomics speaks for himself having worked as Deputy Governor Operations under Dr. Caleb Fundanga and recently as Executive Director at the World Bank. This appointment must most definitely be supported by all well-meaning Zambians, and we all hope the new Governor will deliver on his TORs to maintain price stability and promote growth in the economy.
It is evident that Lungu actually means business than many thought, and he is serious about fixing the economy and the nation’s economic issues, and if this appointment, like that of Margaret Mwanakatwe as Commerce Minister is anything to go by, he clearly has what it takes to turn round Zambia’s fortunes and lead the country on a stable & sustained positive economic growth path.
One of the PF’s targets is to keep the rate of inflation consistently below 10 percent per annum while maintaining price stability and promoting growth in the economy. Such targets, to a large extent are attained by judging the effectiveness of the monetary policy conducted by the Bank of Zambia. This dual aim requires a serious understanding of macroeconomics that seems to have been elusive in the previous appointment. As we stated before in the past, in the USA, for their Federal Reserve Bank, they have reserved the role of Chairman for the Reserve Bank to eminent macroeconomists who have devoted their lives to understanding the economy. It is therefore indeed exciting to note that Edgar Lungu has taken on this path of competence based appointments to address the monetary policy challenges facing our economy with an ever depreciating Kwacha.
In my view, this appointment may reflect that the president understands that BOZ is a professional — not political — institution and that its governors have a statutory national responsibility without having a blind commitment to a particular government. At the same time, it may signal that Eddie’s political leadership of the country understands that economic recovery and price stability will come with strengthening, not weakening, vital economic institutions like the BOZ, and indeed, the recent appointment surely serve to strengthen BOZ and will inspire confidence in the financial market.
With the new appointment in place, the challenge ahead however is to ensure that Eddie’s approach to economic governance is coordinated and consistent. The macroeconomic policy framework should dictate individual economic policies rather than scattered and stand-alone economic policy decisions determining the macroeconomic outcome that we were exposed to in the past three years. The various economic policies and sectors are interconnected and interdependent and as such need a more coordinated approach and basic understanding of the issues as any lack of consistency in thinking and approach in the formulation of economic policies will result in conflicting national economic objectives and confusion in economic policy formulation. With that, let’s observe that the three most potent instruments of macroeconomic policy framework are fiscal, monetary and exchange rate policies. Those need to be interlinked on a consistent and professional basis and not through scattered administrative and politically motivated decisions.
Enough said, moving forward, what the president ought to do is to set economic targets and tell his economic team to come up with a policy package to achieve those targets. Obviously, the quality and the harmony of operations and thoughts of his economic team (Chikwanda in charge of Fiscal Policy at Ministry of Finance and Dr. Kalyalya in Charge of Monetary Policy at BOZ) will determine the success of such targets set. Alternatively, he can tell his team what type of economic policies he can politically adopt and his economic team should be able to advise him of the outcome of such policies. What he cannot, and should not do is to simultaneously set economic targets and suggest politically motivated economic policies, this leads to the poor economic outcomes of the past three years.
We very much look forward to more competence based appointments in this new government, and wish them well as they execute their national mandate towards 2016.
Yes we agree,meh means business. That’s why he appointed Kambwili with no media experience as Minister of information
Iwe ka Moono what are you babbling about ?
Edgar CAN go to HELL. As Tongaz we dont want his “appointments”. We know we are INTELLIGENT the REASON he appointed a Tonga Governor-Denny Kalyalya and a Tonga Economical Advisor Himwiinga Beene to fix the Economy for him. We shall NOT BE USED LIKE TISSUE papers.
More over he has picked Lozis and others from the Northwestern Block so that he gets VOTES frm there in 2016 but ailasha.
UPND r UNITED as one and will make it no one can stand on our toes.
Viva HH2016
That Kalyalya looks like a common conman like Moise Katumbi.
Ba Chils or Chila…..Stop hating. Denny is qualified.
No matter how brilliant the appointments might be, PF messed up big time. I Pity this new guy, because he tarnishing his shining career by joining the PF mafia mob.
When ZWD said PF has finished the Euro bond and the government is broke, PF minions were saying Eurobond is still safe in a some bank account some where.Now the truth is slowly coming out by their admittance that PF will need to borrow more to service their debt.
Debt cycling and transfer will just land Zambia into more sh1t worse than KK and his UNIP landed Zambia in 27 years.
So if PF government is struggling to service the debt, then it means the wage freeze stays until further notice. More over, civil servants and most government workers will not be paid their salaries on time.
PF is a failed project even under…
With this information filtering through from PF government, I can safely predict that;
Wage freeze or even wage cuts will be the order of the day under the PF.
Major health and education institutions will be hugely under funded. Hospitals will have no medicine.
Farmers will again this year be in a worse situation than last year because there will be no elections to push PF to pay farmers promptly.
Debt is bound to reach $10billion by the year 2016.
Rule of law will be worse.
Civil servants , police and defence forces should forget getting their salaries on time.
Government induced Kwacha devaluation to Zim level is eminent than ever to cover the costs of running the government.
All in all Zambia is headed for bleak future.
Mamamama! Zambians are in deep sh1t…
Clean up the mess both in Government hospitals, Government Agents and institutions that will make your Government deliver serious development now and beyond 2016 to the expectations of your people. Am sure you are more than informed that a lot of people did not support your effort when it mattered most and these should not pretend to be good to you toady simply because you are now in State House.
There are many young men and women who were with you through hard times whilst most big bwanas in higher offices had their legs in two camps and supporting your enemies.
This is time to reflect and put your devoted and loyal team to work.
Opposition United Party for National
Development vice-president Dr Canisius
Banda has attempted to put up a defence
for embattled Director of Public
Prosecution Mutembo Nchito but admits
that the cartel member is a shady
character.
Banda put up a sugar coated statement
on social media but admitted his party
was not a fan or supporter of Muetmbo
Nchito’s shady conduct.
Below are DR CANISIUS BANDA’S
THOUGHTS
ON JUSTICE [The Case of Chickens Coming
Home to Roost]: That Mr Mutembo Nchito
has led a life of controversy, riddled with
flaws, is not in dispute. Because of his
unsuitability to serve then, we in the
UPND, speaking in defence of decency
and on behalf of many voiceless citizens,
were among the loudest and most
consistent voices that called for either the
removal…
If he means business than how the hell does the exchange rate to the dollar reach K6.76. Please dont waste my vote!
You are truely an *****. Do your homework on exchange rates first. How long has man been in the office? Stop hating.
Yes now let him scrutinize the contract of Dr mabula as it was irregularly issued by Chikwanda lets get it right and get a professional to fill her post
The appointee has the capacity to deliver results. A lot of public support and understanding needed to perform well. To achieve that objective, there is need to applaud together for the same reasons. It is not right to presume that the previous appointees were responsible for all the failures in the economy. Give credit where it is due. Take for instance the re-basing exercise. That was a courageous decision intended to simplify business transactions. Second, look at Eurobond. The aim of borrowing in that way was to create scope for government to modernize basic infrastructure for economic growth. A lot of complaints about borrowing address payment obligations without stressing benefits derived from the loans. Consolidation, growth and prosperity must be promoted.
@Private citizen
Agreed. The problem is Chikwanda and ZRA not being able to collect Revenue from the mines.
If we could just blood let …in the Mines we should be able to pay back the loans pronto.
Well let’s wait and see. So you mean Gondwe is useless
Gondwe was useless kaponya on the payrolls of crooked Indian launderer.
A favourable comment, mainly because the appointee is Tonga-type!
Good observations! Let us hope the appointed persons will stay professional and avoid the vices that have destroyed our public and private sectors. Nepotism,tribalism and any form or amount of favouritism that dilutes professionalism at any level in institutions should be avoided.As the article says fiscal and monetary policies go hand in hand for a stable economy.May be it is high time government reviewed the effectiveness of ZRA in carry out its mandate and if need be make some changes there too!
This is what HH was saying. You need an economist to put things right. He was UPND choice for Governor. Lungu is just copying. Altho I feel sorry for Kalyalya working among hyenas.
HH lost. Get over it. It is time to get back to work and stop being cry babies.
U KNOW SOMETIMES JUST COMMEND SOMEONE FOR A WISE DECISION MADE THAN WANTING TO STILL GET CREDIT FOR IT. HH WANTS TO GET CREDIT FOR WORKS HE DID NOT PERFORM, E.G ROAD-MAP FOR THE NEW CONSTITUTION, TOO BAD THOSE WHO WERE LEAKING GRZ SECRETS TO HIM ARE GONE AFTER CHEWING HIS MONEY, OTHERWISE HE WOULD HAVE SAID HE SUGGESTED IT OR “WE DEMAND THAT U APPOINT DK AS BOZ GOVERNOR IN 1 WEEK TIME”
A very rosy write-up, mainly because the appointee is a fellow Tonga-type!
Kalyalya did not have to accept the appointment. Since he has accepted, it means all is well. If he finds misconduct, he can resign
So Moono thinks everything that Sata did was useless. According to Moono all these projects initiated by Sata are useless:
1 Chingola-Kitwe Carriage way
2 Chiawa bridge
3 Repossessing ZR and revamping it
4 Repossessing ZAMTEL
5 L400
6 Link8000
7 Pave2000
8 650 Health posts
9 New Districts eg Choma
10 New Universities
11 District Hospitals
12 Schools
13 Kazungula bridge
14 More electricity plants
15 NCZ revamping
16 Finding an investor for Mulungushi textile
17 many many more
I strongly believe Moono is just anti Bemba. If the appointments are not Bemba then it is ok for him.
@BBC
Moono is absolutely right.
Have you looked the audit report on Zamtel? PF bankrupted Zamtel to negative figures in profit, which tranlates into massive losses un seen before since Zamtel ‘s inception.
All those companies Sata got back, are in deep sh1t. They will be closed or reprivatised again since PF government is at now looking for money to service the eurobond debt.
So expect those companies to go under very soon because the government has no money to re-captalise them. They were just a fattened pig headed for slaughter.
Where will the money to complete those projects come from?
Zambia needs a technocrats like those in HH ‘s team to transform the fortunes of this country.
Any way Zambians chose Lungu, so let them enjoy their suffering.
PF is a failed…
Which technocrats in upnd are yu talking about? Kalyalya is more qualified than hh. Luo is more qualified than Cornelius. The list is long for pipo who are better qualified in pf than upnd. So stop cheating yourself. If you were in zambia today you can’t see that hardship you are talking about. In fact pipo in zambia live a better life than you who is surviving on credit card account.
@12, Yobo 13, 13
Which qualified people in PF are you talking about ? There are no ‘brainy’ people in PF. Only Vincent Mwale (though he is MMD) seems to be an inspiring youngman in this Cabinet the rest are useless stop muttering my Friend Yobo !.
UPND will goad PF till WE REMOVE them from the driving sit. Kambwili was planted at MoI so tht hecan be making nosensical NOISE. Its time the REAL clout Zambians wake up and take the reigns of power from these thugs.
@Yobo 13, 13
You are very right! Zambians not only have a better outlook despite problems which are largely historical.
Look, this year when I went to The Business Show at Olympia here in the UK, THERE WAS A LARGE EXPOSITION just for Investors advising on Africa, India. This was Chockablock, I couldn’t get a ticket in on ALL THE DAYS THE SHOW WAS ON!
Europe is on its way to Africa because the growth here is negative. UK economy is now mostly Services based..Steel Industry…gone, Car Industry…most gone and remaining foreign…and they lost the Colonies of course!
We need serious gov’t for the people to run programmes that deal with problems of past and which is inclusive to ALL levels of Zambians, raising the Poor to good standard of living. That Wanzelu/UPND are…
@12.2 Undertaker Nkumbula uli chikopo zoona. That vincent mwale chap you are talknig about is just a grade twelve guy. PF has more educated people that UPND. There is no legal brain in UPND that can be compared to Dr. Ngosa Simbyakula. No educationist can be compared to Dr. John Phiri. You will die of envy my guy
@14.3 Mahala Mbu Sambazi!
Are you analysing issues with a drunk eye or what ? Those FAKE DRs u are putting across are just plebs who can NOT BE RELIED on. There is no substance in all what they do. All the PF MINISTERS’ IQs and Productivity’ cannt surpase a single Dr in UPND, Dr Beyani can engulf all of them.
Hmmmm my friend ! @14.3 Mahala Mbu Sambazi!
Are you analysing issues with a drunk eye or what ? Those FAKE DRs u are putting across are just plebs who can NOT BE RELIED on. There is no substance in all what they do. All the PF MINISTERS’ IQs and Productivity’ cannt surpase a single Dr in UPND, Dr Beyani can engulf all of them.
Thank you Mahala Mbu. Yeah Dr John Phiri yeah very smart guy from the East. The more such wise guys we have in the cabinet the more progress we will make. Kambwili and the likes can be invisible if there are more wise men from the East. Yeah
@BBC I can see how even seemly educated people could vote for PF. Ignorance is dangerous. Many of the listed projects were initiated under MMD. These include the roads projects and Chiawa and Kazungula bridges. PF only found them in the pipeline and then borrowed heavily. The other projects lacked consultation and coordination with other national interest. It was just bad management of a potentially rich county.
What is your point?
I don’t understand UPND. You go on and on about the Poor and what you will do for them but you fail to say what exactly.
The truth is we needed to borrow for infrastructure, where else was the money to be found?
How do you get the poor in rural communities joined up? By Roads of corse. So they can bring produce further out and improve life generally.
The problem I have people like you is that you try to justify the failures of your party like MMD by convincing yourself that MMD started all these projects.
Sata goes in office and within 2 years 9 months all the projects are oncourse and being done, whereas MMD with 20 years to their name where was just but a shame. The fact is MMD failed in 20 years whereas Sata delivered in less than 3 years. I know the excuse you will give is ” MMD inherited a bad economy in 1991. So they had to put things in order for them to start developmental projects”. That is Nathan Nyirenda sang to say ubunonshi bwabafye pamapepala. Atleast Sata showed us that with determination we can construct,thus creating employment. So your excuse, sir, that MMD started these projects does not hold water
Your comment shows our level of intelligence. You have what can only be described as a PEA BRAIN.
Hmmmm my friend @14.3 Mahala Mbu Sambazi!
Are you analysing issues with a drunk eye or what ? Those FAKE DRs u are putting across are just plebs who can NOT BE RELIED on. There is no substance in all what they do. All the PF MINISTERS’ IQs and Productivity’ cannt surpase a single Dr in UPND, Dr Beyani can engulf all of them.
Chingola needs competent MPs. Simuusa failed whilst he was minister.
Viva EL
@Anderson Nkumbula
spare us from your boasting. What intelligence and riches are you talking about that UPND has? Who told you that you have the monopoly of knowledge? The fact that some of your relatives were holders as CEO of most parastatals and practiced tribalism by employing your relatives does not make others dull. Can you pinpoint one major discovery done by your so called “intelligent people”? Electricity, cars, planes, TVs, Radios, computers etc are non of your intelligent people’s discovery. Having some economists in your party who have studied abroad and have mastered a few economic principles does not warrant intelligence. Every human being can attain any level of civilization, not you only and intelligence. All tribes have dull and intelligent beings you retard.
Ok i agree with you but there are more Ngonis who are clever than Bembas sichon cho?
Clean up the mess both in Government hospitals, Government Agents and institutions that will make your Government deliver serious development now and beyond 2016 to the expectations of your people. Zambia is not just Lusaka and am sure you are more than informed that a lot of people did not support your effort when it mattered most and these should not pretend to be good to you toady simply because you are now in State House.
There are many young men and women who were with you through hard times whilst most big bwanas in higher offices had their legs in two camps and supporting your enemies.
This is time to reflect and put your devoted and loyal team to work.
God bless you your Excellency.
The promises you made to the electorates are in black and white and we watching.
Viva H.E. ECL
@ Anderson Nkumbula
Do you know what intelligence is? I guess you have never seen an intelligent person. One day, maybe, you will see one. Intelligent people usually don’t boast. They do things quietly and don’t yap yap anyhow in the media. God favours them and gives them knowledge. Any human being from any race, tribe can understand calculus, algebra, economic principles, electrical/electronic principles etc. It is not only from your tribe who have studied the real core of knowledge that can change Zambia, NO. We are equal and the brain design is not different from one tribe to another. I have seen very intelligent guys from Luvales, Bembas, Lozis, Tongas, Lundas, Ngonis, Bisas, Nkoyas etc. So stop your nonsensical ideas that you possess all knowledge.
@BBC
Why are arguing you are simply a typical illiterate in a bunch of illiterates,every day you are busy confirming your illiteracy Ati Ngonis are more than Tongas?not even when they are combined with Chewas if you were not too illiterate you could have looked at provincial distribution Tongas Dominate lusaka,Central and southern,possibly you have never even been in LUSAKA while Ngonis chewas dominate eastern,obviously because of your illiteracy you might have been misled by Nyanja as a language spoken in lusaka it has simply been accepted by Tongas because it is not tied to a particular tribe even in Southern it is spoken bembas had to follow suit because Tongas are refusing to speak bemba and bembas do not want Tonga hence use neutral Nyanja,just go home by by home MULIBUTI.
@Educating the illiteracy
BBC blogs seem to suggest he is an illiterate,i have followed his blogs for a while now,the guy is simply data less,somewhere he was complaining that most of the institutions in Lusaka are dominated by Tongas hence Government should do something instead of Ngonis who are dominant surely Ngonis dominating Tongas?it is like expecting Tongas to dominate in Kasama,in as much as Lusaka is a capital city it still remain bantubotatwe land hence their numbers a fact bembas have refused to accept in lusaka,when they hear tonga being spoken Ati we are proud they want us to use other languages even if you talking to your fellow Tonga,now let’s Tongalize let them hung,BBC learn to research Tonga is second biggest tribe after bemba with a small margin,just live with it.
BBC
he is an empty cadre imwe bantu telling him to research is asking far too much from him he uses street data he just hears the fellow cadres who say Tonga is minority tribe him takes this to mean they are the fewest out of 73 tribes,even bemba is a minority tribe when compared to the rest 72 tribes anyway he operates on hearsay just forgive him.
Don’t argue with No Nzelu lad. His only source of news is Galu watchers in Zambia.
Ba BBC mwavoka!
So this chap is saying Gondwe was not qualified? The lenses you guys you use to see stuff will cost you another election and I am sure someone will retire after that.
Thank you Moono I keep reminding these Kasama noisemakers that now we have a working govt since its being led by a wise man from the East. You will see development like you’ve never seen it before. Such Sata appointments done with the influence of dAnderheads like GBM and Kambwili have to be sanitised and when the country starts speeding towards progress no Bemba man will be able to stand for the presidency again cos Lungu will have transformed the nation into Singapore South Korea just watch this space.
Bamoono thats the way to go. you are showimg us that Tongas can stand without HH just like Bembas without sata. we all need to come out and suport lumgu its possible that HH can be president or can not be