ZAMBIA’s economy is improving despite facing challenges with its fiscal position, Finance Minister Alexander Chikwanda has said.
Mr Chikwanda said the Zambian economy was improving but the lower commodity prices have caused problems on the Balance of Payments (BoP) and the fiscal position of the country.
He said currently there was a gap between the revenue and expenditures in the budget thereby leading to deficits.
“Our fiscal position at the moment is very difficult. Yes the economy is improving but we currently have challenges in the area of the budget and we have a deficit,” the minister said.
“We all have challenges especially for oil producing commodity countries. Commodities have taken a beating plummeting the commodity prices which is causing problems in our economy in the BoP and the fiscal position.
There is a gap between revenue and expenditures leading to deficits which may be difficult to handle,” Mr Chikwanda said.
Speaking at the just ended International Monetary Fund (IMF)/World
Bank Spring Meetings in Washington DC, Mr Chikwanda said described the meetings as successful saying that it was a good interaction for Zambia.
“The next meetings will be held in Lima- Peru and this was preparatory meetings and it was a good interaction that Zambia participated in the spring meetings because everybody that matters from the financial sector was here so there was a lot of opportunity for interactions,” Mr Chikwanda said
He said they had several bilateral discussions with several countries, cooperating partners such as the World Bank and the International Monetary Fund (IMF).
The minister said the spring meetings were a very useful get together as countries strive to work towards fostering economic growth, promote high employment and reduce poverty.
He explained that Zambia was the member of the World Bank and IMF and do take part in the policy formulation.
And Bank of Zambia (BoZ) governor Denny Kalyalya said he meet with bankers that were interested in doing business in Zambia because of the good business environment.
Dr Kalyalya said he had discussion with the International Finance Corporation (IFC) a wing of the World Bank and the IMF on issues of financial stability and programmes to be implemented in Zambia.
“We had a conversation with International Development Association (IDA) 17 which started last year in July we are going towards the mid team so we are in the process of preparing for IDA18 which is underway and the mid team review where the emphasis was placed on the voice of the borrowers and we went there to make our voices heard,” Dr Kalyalya said.
No, the economy is not improving. In 2014, growth dropped from 6.5% to 5.3%. This year, with the huge budget deficit and severe policy inconsistency, growth is expected to be bellow 5%. So Chikwanda is lying.
Edgar Lungu has failed to improve the economy of this country. I think he can do well to resign before things get worse. He is the most useless president that Zambia has after Rupiah Banda.
Edgar Lungu should voluntarily step down instead of waiting to be voted out next year. Zambians are tired of blind and visionless leaders like our Lungu.
If anything else, the economy is in a more of a fiasco position than improving.
Chikwanda the backward PF finance bandit minister. Chikwanda wearing failures!
The Skeleton Key
~206~
It is shocking our the so call leaders are at the forefront to mislead people. Dear Chikwanda if commodity prices is slow and Zambia imports it oil, then this commodity must become cheaper on our market for the this period. This will assist boost the other sectors of the economy like tourism, energy and agric. However, you are fast on blaming and not seeing an opportunity.
As for our interaction with the lenders it is said that this makes something good to note that our leaders are happy to be in the bracket of top borrowers. What a shame, one goes to a meeting and is getting allowance to promote a position of borrowing.
Zambian government is bankrupt ! We have had the some things last 50 years since independence . Has mongu or Kabwe developed? Only development is in lusaka . That minister is useless and his boss , we need leaders who can be planing 20 years forward .
Why not resigh on moral grounds?
you have failed the country.
Zambia on knees again because of PF
@ sudan
How can you expect this geriatric grand-dad of corruption to resign on moral grounds when he is absolutely void of any morals?
Chikwanda should resign he has failed Zambia and Zambians
Chikwanda is a big liar, the economy is in big problems. He is a major factor due to his corruption. How can you pay Chinese company 25 million dollars and share the money and no works are done. How much more have you stolen. Sick old man
The truth of the matter is that economies world over are not stable at all. Mn is trying this and that to become stable but only a few make it to the top. All this language is foreign to a mama in shang’ombo or Chama. All we need is a decent meal on the table and be able to send our children to school while saving a bit of some money. When is this going to be achieved?
over here in alberta the current provincial government premier has voluntarily called for early elections next month,,, were supposed to be held next due because of a budgetary and economic stress which is resulting in significant deficits. He is doing this because he wants a fresh stronger mandate from the people to continue. Funny enough it’s the opposition parties that are AGAINST holding an early election.
This is how serious budget difficulties are viewed here. It should not be business as usual
were supposed to be held next year.
Chikwanda should step down. He said he was going to “serve” or “eat” for three years only. Time is up Old man. You have done so much damage already. Zambia can not afford to have you any longer, the damage you have caused will take a lot of time to rectify.
This is like saying “i bought my wife a very expensive car though i am broke.” How did you do it it? borrowed heavily?
It is difficult to understand the Ministers position when people’s livelihoods are under severe stress due to the poor economy. Is the Minister in touch with the reality on the ground? I doubt. How can one say the economy is improving when poverty among the ordinary people is increasing?
This is just the usual african ‘SWEET’ talk in international forums. It hardly reflects the reality on the ground.
Fact is the economy under RB and Musokotwane was doing very well but Zambians got hoodwinked by Sata in 2011 and have been paying the price ever since. If RB had won the 2011 elections the country would be in a far stronger economic position than it is currently.
….what is ABC talking about…??…its like he is answering to a question…..’has the economy improved…??’…then he responds YES and NO….YES in that bla bla bla…….NO in that bla bla bla….
….the problem with our so called economic technocrats is that they have placed themselves very far from the ground, the reality….their emphasis and measure of economic indicators is so much based on theory other than practical…..if you ask ABC when last he visited Soweto or kabwata market….it will be probably 8/9 years ago….
Fossil Chikwanda has LAMENTABLY FAILED this man was told that commodity prices will fall but they carried on spending and they are still spending…this is man has no integrity whatsoever he championed the mineral tax policy and he stated that he was not reversing it but guess what his lazy boss reversed it and he is still holding on.
Chikwandanomics will not take us anywhere..its all about borrowing and borrowing from the mafias like he was doing in D.C.
Not too sure what to make of Mr Chikwanda’s statement, doesn’t give confidence at all. Within the last three years he is credited with making so many damaging policy instruments and equally or even more damaging policy u-turns that you wonder if the ministry of finance including its senior management is in good hands. A misfiring cylinder in President Lungu’s government perhaps?
“When people are hungry and feel ignored by government, they will resort to any means to feed themselves and their families…”
The list of causes of Zambia’s problems is long. To name just a few, first, somehow, the country has organised itself into non-development mode. No matter how hard they try success still eludes them, or how else do you explain statistics that say the economy has grown by 6 or 7% but at the same time poverty has also jumped from 60% to 84%? Second we have a leadership that simply don’t understand anything about how to grow the economy. The president is on record confirming he has no vision, didn’t even want to be president. Third we have a voter population that is satisfied with mediocrity and don’t see anything wrong being led by a bunch of misfits and clueless leaders. These and other problems form a formidable force that guarantees Zambia will forever remain a pariah state. Sad.
If I were to digress a bit, do ministers or their deputies ever get paid late? I ask cause this out out of touch with the ground syndrome makes it hard for anyone in Zambia not to see the mismatch between the statistics being floated about and reality
Exactly to the point. Overall, the Zambians are themselves to blame for electing visionless leaders. How can somebody vote for ECL sure.
It is absolutely clear from your ID!0TIC statements that you have no clue about what is happening on the ground in Zambia, and that YOU personally are the biggest stumbling block to economic recovery.
The sooner we have someone competent to do the job the sooner things will improve.
Bungling ID!OT! YOU destroyed the economy once before, why are you so dull as to do it AGAIN!!!!
Just get OUT you stup!d old f00l!
Maybe it is getting from worse to bad or poorer to poor. We are still in the bad zone in terms of the economy as a country.
All seem to attack Chikwanda.
All over the world, countries are experiencing challenges and economies are not doing well due to drop in performance of prices of commodities. Oil is down, Copper is down, Gold is going down. So what do you want him to do. You just want jobs and once there you maintain status quo. Even if your U5 HH was there he will face same problems. What must sink in your asses is that PF is pro poor. Its agenda is roads, hospitals, schools which the poor benefit from NOT the improved standard of living for the rich. If you cant see this then sorry you will keep waiting and lamenting till you burst with jealousy. Economy is doing very well.
@ DjR
If your brain has migrated to your anus, then I can understand your way of thinking.
Otherwise, from September 2011 to date, improvement in living standard has not benefited the poor, middle class or rich. Only beneficiaries are the anus licking scum like yourself and corrupt officials who are beneficial recipients of your licking exercise.
Which economy is improving?Zambian or his personal economy?????
so many comments from danderheads, the world economy is shrinking,prices of major commodities are falling. these are facts but all you want is to insult your gvt. EL has been in power for only 3 months and you expect him to do what mwanawasa did in several years? what do you use to thank? ar!ses i should guess in times like this even a minimal improvement is recognised. that d@g HH you are supporting cannot even achieve anything even if given 100 years, he can just bring genocide with his stup!d tribal politics.
The economy is breathing. Salaries for civil servants are paid on time. Shops are open till late. Fuel is available. It is factual to acknowledge that the commodity prices created a shock. Let us now face certain minor budget cuts with dignity. The situation will improve soon. Even the legal tender has stabilized. Those that argue that it is better to abandon infrastructure development projects are just argumentative. It is absolutely necessary to widen the net. The small colonial economy must give way and pave way for the modern economy to flourish in the country. This is not about how many thin cows and how many wives. It is all about commercial transactions, including tourism.
Bwana Dr it is not ease for you and your Chikwanda to see how worse the situation is on the ground because you are directly benefiting from the government.The common man is being heavily affected by our excessive borrowing.This kind of Governance is what we rejected in Kaunda time.Even for PF it is just time .Don’t think you will be there for ever
You have even noticed to say everyone is not satisfied with the Minister statement.The reason is that the majority poor people are the one who feeling direct consequence of you Government mismanagement
People are now tired of the lies from politicians that is why you see for instant only 15% voted during the last by-elections in chawama the least of 85% remained at home.How can you keep on voting for the same Government that is trying to bring back HIPC,by borrowing heavily.The no money in the pockets gimmick,high cost of mealie meal,high cost of education,agriculture input.You are constructing roads quite alright but can you tell us how you are going to pay back these loans?These roads get damaged every after 10 years, what measures have you put in place to maintain them.
One thing for sure the Minsiter has admitted the unfavarable fiscal position in which Zambia is in this moment. The reasons advanced by Mr Chikwanda may not be very convincing. Can people put up suggestions that can improve the situation, instead of just condemning or insulting Mr Chikwanda. We have heard enough of these things. What is the way forward under the circumstances
Only way forward is to complain and listen to complaints until September 2016 and then make sure that YOUR VOTE COUNTS.
As to teach old dog new tricks?
You know the answer!!!