The opposition Rainbow Party has urged Information Minister Chishimba Kambwili and Presidential Assistant for Press and Public Relations Amos Chanda to desist from commenting on the state of the economy.
Rainbow Party 1st Deputy General Secretary Cosmas Musumali told a news briefing that Mr Kambwili and Mr Chanda have contributed negatively to the state of the economy through their careless statements.
Dr Musumali said issuing of statements on economic issues such as the depreciation of the Kwacha should be restricted to key officials from the Bank of Zambia and the Ministry of Finance.
He said the Secretary to the Treasury and BOZ should take the lead adding that State House and the Ministry of Information should take a back-stage saying their involvement to date has been catastrophic.
Below is the full statement issued by Dr Musumali
POSITION OF THE RAINBOW PARTY ON THE ESCALATING ECONOMIC CRISIS IN ZAMBIA
From the 1st Deputy General Secretary–in charge of Ideology and Mobilization Comrade Cosmas Musumali
Zambia is today facing one of its worst economic crises since independence in 1964.
The indications are that this crisis is just beginning and will deepen over the next 6 months:
The Zambian kwacha is under immense downward pressure – reflecting both external developments (U.S. dollar strength and lower copper prices) as well as domestic factors (growing fiscal deficit, depleting government deposits, unstable fiscal regime, unprioritized spending, high levels of corruption and the electricity crunch).
Over the past 4 years monetary policy, through the Bank of Zambia (BOZ), has overstretched itself in containing inflation and trying to stabilize the Kwacha.
With low reserves at its disposal, the options for BOZ have narrowed down. We do not therefore reckon with active interventions of the central bank in stabilizing the Kwacha.
Fiscal policy has therefore to play a significant role. However, the fiscal policy of the PF government has not been is still is not supportive. The end result is that the Kwacha is now the worst performing currency in the world.
As we stated in the last Press Release by the Rainbow Party General Secretary two months ago, this has pushed the currency risks to unprecedented levels and will critically hurt the entire economy.
Growth is projected to decline to below 5% as businesses reduce capacity or close – rendering thousands of workers jobless.
Key risks to this outlook being a volatile currency, the electricity crisis, absence of fiscal adjustment especially with the pending general elections in 2016, persistent low copper prices, and policy uncertainties that continue to undermine investment in the economy.
Inflation will rise; induced by a weaker Kwacha, increase in food prices and essential commodities and high electricity bills. This will push the cost of living upwards and exacerbate the prevailing poverty conditions of the masses of the Zambian population.
This crisis requires urgent and informed action that goes beyond what the PF government has today exhibited:
There is need for strong efforts to ensure macroeconomic stability with focus on fiscal consolidation to reduce the deficit, stabilize debt, and create conditions for lower interest rates.
We are calling for sustained expenditure efforts, including efforts to contain international travel, the never-ending workshops, unprioritised spending, procurement of vehicles, office furniture, etc.
The government should postpone the setting up, equipping and staffing of the newly created Ministries for at least 10 months.
All ongoing infrastructure projects should be reviewed with the aim of halting a number of them until the economic conditions improve.
The Bank of Zambia should continue to maintain a tight monetary policy stance to contain inflationary pressures, continue with exchange rate flexibility and resist demands to deplete the little remaining reserves.
The Zambian government should stop contracting any more commercial debt for the next 12 months.
We also demand to see and provide input to a comprehensive debt management strategy that will help mitigate the risks of public debt vulnerabilities.
The economic policy “messages” being sent to the public and financial markets should be informed and well-though out.
The treasurer and BOZ should take the lead.
State House and the Ministry of Information should take a back-stage – their involvement to date has been catastrophic.
I am no supporter of this Rainbow Party, but I can agree on just about EVERY SINGLE ONE of these recommendations. Thankyou Cosmas for showing there are still intelligent and sensible people left in Zambia.
Can Lungu and Chikwanda see sense when it is spoon-fed to them like this? I doubt it very much. These two clueless clowns are still living in DENIAL! It will take an earthquake from the Zambian people to wake them up and see they have totally destroyed the economy! And by that time it will be TOO LATE if it is not too late already.
We are already burdened with DEBT and LOAD SHEDDING that has crippled business, sent investment running away, and is almost impossible to repay, and what have we got to show for it? A tourist President that says everything is fine, and he is in control…
Chishimba Kambwili (govt spokesman) says he doesn’t agree with diversifying into agriculture because it is an activity dominated by UPND sympathizers. (Parley debate on creation of ministries)
That’s how much grey matter they have & then they are talking about reconciliation in the same breath.
I must add my positive impression of these well-thought out alternatives. The statement is devoid of any personal attacks on government/party officials but a straight-up well summated response to the crisis at hand. One can only imagine just what a rich knowledge bank a national economic indaba could generate. Always refreshing to peruse such well articulated economic principles in such pragmatic narratives. Thanks Rainbow gentlemen! Comrades in PF, we are waiting…….
Kambwili is a retard. Let him cary on opening his mouth to the detriment of these theives in power.
Well said Rainbow party, each time kambwili opens his mouth, about ten investors pack their bags to leave the country and the mines lay off workers; these two sound like two empty drums rolling down a hill, noisy but empty;
Surely these are but just mere comments which even a great 12 doing commerce would say. Does this have to come from ba Dokota na ba BID.
RSA is in the same situation, does it mean it does not have economists like HH and ba Musumali.
Lekani ukulanda landa fye. Twanaka. Sata was busy destroying the economy what did Kabimba and Mmembe do. Very very asleep deliberately and we know why. Kabimba was positioning to take over from an ailing Sata. And Fred and Musumali knew what positions they were going to assume had the unthinkable happen of winter becoming the 6th President. So really there is nothing being said as twisting or rabbi-dding will not do. At least HH was critical of Sata. Not imwe ba God must be crazy actors. Dr Musumali there are very well informed professionals who understand…
these things better than you think.
Just keep rotating in that winter maze with some girl called Masebo being licked by Kabwima bwaima kabimba
Achievements of PF after four years in power —- “The end result is that the Kwacha is now the worst performing currency in the world” IN THE WORLD!!!!!!
Do Zambians know what this means? Those of us old enough have seen it once before. Pity the youth that are about to learn this lesson for the first time.
And that lesson will be harsh. Learn to use your vote wisely!
Failed project
The PF government is the failed project who have accommodated corruption , grossy abuse of government monies, now that the government does not have money to spend they are pushing zesco to apply to ERB to increase the tariffs to common Zambian to fund their political party campaigns in 2016 .the government cooperations have been turned into fundraising entities for PF party source of income.the resultant is the weakest kwacha ever deprive the common Zambian to afford a descent meal every day. This is un called if you .