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Use of Eurobond to finance the 2016 Budget is absurd-HH

By editor
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Hakainde Hichilema
Hakainde Hichilema

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Hakainde Hichilema
Hakainde Hichilema

United Party for National Development(UPND) President Hakainde Hichilema has said that the latest revelation by the PF Government that the will be used to finance the 2016 budget is absurd. In a statement released to the media, the UPND leader said that what the PF Government was telling the nation was that henceforth country will borrow to finance consumption.

Below is the full statement

This week the PF have once again shown their lack of understanding in managing the economy, revealing how the latest Eurobond will be used to finance the 2016 budget. This is absurd, what the PF is telling us is that henceforth we will borrow to finance consumption.

As we have stated before such loans are only sustainable if and when they are invested wisely and not merely used to cover general expenditures. In fact, these funds must be invested into areas that will deliver returns if Government is going to be able to meet repayment obligations, which have now spiraled to take up 7.1 billion kwacha of the 2016 national budget. This is 2.8 billion kwacha more than our healthcare budget! PF must and should invest the Eurobond in productive sectors. A productive sector is a sector that has capacity to grow and pay taxes to Government. This is what is logical.

We say that if we can eliminate waste at the heart of Government then there really is no need to use this money to cover recurrent expenditures like the ones that are going to be for the newly created Ministries. If we can reduce the size of Government, limit the heavy Presidential travel schedule and minimise or completely do away with by elections then a great deal of money can be saved. One by elections costs us a minimum K10 million kwacha that can supply water to over 2.5 million people. So just one by-election denies 2.5 million people clean drinking water.

The savings from this wonton wasteful expenditure is the money that we in the UPND would use to then re-invest in education and healthcare and other critical social services. At this time, as a nation, we need to be investing in strategic areas that will create jobs, such as programmes that provide business start-ups with access to finance, or training of community healthcare workers. Such initiatives will both create jobs and deliver an additional return for us, through improved service delivery or economic growth. Why can’t PF reorganize Development Bank of Zambia and make it the conduit of industrial development. An amount of US$1.25 billion is a lot of money by any standards.

Regrettably this is not the first point on which the 2016 national budget has come under criticism. Analysts, both local and international, have already expressed concern that targets such as to halve the budget deficit in 2016 are unattainable and lack credibility. Barely a month has passed from the day Hon Alexander Chikwanda read the speech in parliament where he announced that his Government was targeting single digit inflation; we have hit double digits at 14.4%. In addressing the current economic challenges it is of fundamental importance that our plans have credibility or we will not be able to win back confidence.

Without confidence it will only become more and more expensive for us to borrow, and investors will more and more take their money elsewhere. Remember, Government has a responsibility to us, the citizens, to spend the money it has borrowed on our behalf wisely and with great care!

Hakainde Hichilema
UPND President

editor
editorhttp://www.lusakatimes.com

82 COMMENTS

  1. Chikwanda is a mistake for crying out loud. And kalyalya is saying the economy is not collapsing. Educated elites arethe worst traitors zambia has seen.

    • Edgar Lungu is now becoming mad. He is the most useless, dull, arrogant, foolish and stuupit president that Zambia has ever had.
      May the day he was born be cursed. Where is he taking this country?

    • I hope that the PF govt is listening. Ba Pres Lungu you said “ifintu nafilubana (things are
      bad), let those who think they have better brains to fix the crisis overnight come forward, tubomfyeko amano yabo (we use their wisdom)”.

      Here is someone volunteering information to you, please use his wisdom. Forget the Kasama by-election as it is a waste of time. Lubasenshi wasn’t necessary either, you don’t always have to be proving a point. Use the money wisely otherwise Zambia is heading for a big economic meltdown.

      PF cadres please pass on this timely advice, not ati HH doesn’t advise. Here it is.

    • Nothing wrong with using the Eurobond for the budget

      I have CIMA, ACCA MBA, MSc,finishing PhD and I know there is nothing wrong
      Thanks
      Bb2014

    • Mushota if that’s what those qualifications tought you, you waisted your time and money studying. Look for another carrier

    • THE WALL FENCE IN THE BACK GROUND! MOST WALL FENCES IN ZAMBIA ARE AS UGLY AS THE ONE ON PICTURE’S BACK GROUND. IN ZAMBIA ANYONE AND ALL CAN BUILD AN UGLY WALL EVEN HIGHER THAN THEIR HOUSE AND AS UGLY AS THEY DON’T CARE. I HEAR THERE’S AN INSTITUTE FOR CONSTRUCTION STANDARDS. CAN’T THEY STANDARDIZE WALL FENCES IN TERMS OF HOW HIGH IT CAN OR NOT GO, THE PLASTERING IF BUILT WITH CONCRETE BLOCKS, GATING, ETC IN ORDER TO GET RID OF THESE UGLY FEATURES AND BEAUTIFY OUR UGLY TOWNS. THE HIGHER THE WALL FENCES THE MORE SERIOUSLY VULNERABLE YOU ARE TO BE ATTACKED BY BURGLARS AS THESE FENCE WORK FOR BURGLARS AND NOT HOUSE OCCUPANTS.

    • Barely a month has passed from the day Hon Alexander Chikwanda read the speech in parliament where he announced that his Government was targeting single digit inflation; we have hit double digits at 14.4%.

  2. Most Zambians don’t care what sense someone is saying but the only thing they see is tribe as if by voting for your tribesmate, you will be rich overnite. ECL is from eastern, and we see them suffering the same way all of us do. Except of course for the praise singers and hangers on that will always stick like ticks to anything that will give them protection and access to easy money. That said I am not campaigning for HH but for Miyanda. He is the only politician I trust

    • The only thing some people are thinking or hearing when HH talks is “statehouse”. Even when things around them are screaming “the economy is in trouble”.

  3. I conquer with HH on this one because when you get a loan it means you want to clear the problems by investing the loan into business that will yield a profit and the profit can help to pay back the loan so as government was suppose to open companies that can pay huge tax to government there by making it easy for government to pay back the loan. :H H 2016 is yours u have my vote

    • @ Myopic Observer

      Which project(s) you are blabbing about? There have been already alocated funds in 2012, 2013, 2014 and 2015 budgets! How many times you need to finance road construction?
      Open your myopic eyes and observe by yourself. Reality is there to be seen if you look at it.
      There is no need to go far away to see reality. Ngwerere – KKIA Junction, paltry 97km has been “developed” for past three years and two months. Up to now, at least 5 different contractors, daily “come and go” by RDA in brand new 4×4, millions of dollars invested in machinery which has been parked and collects dust as only 4.3km (3 tiny sections) or 4.3% has been completed.
      Please, stop adding insult to injury with “smart jack-ass” comments.
      Where has gone money already allocated in previous 4…

    • IQ138 – Seems you are so intelligent with that IQ – we will see how far you will get with your “intelligent” semantics.

  4. Let him just wind up. 2016, he is going back to Chawama. Let us encourage all Zambians to register as voters so that together we can chase the mad man out of State House in 2016.

  5. Thats true PF , Zambians are happy with the current economy situation and load shedding since the voted for bandit PF . Things are getting more worse next month , by January Kwacha will be useless . Lungu has never opened his mouth and talk about economy situations or solution apart from warning party’s from opposition .we got a back Parker prisedent and who has 1000% full of corrupt and dull cabinet .

  6. Asking Lungu and his administration to not be incompetent and midiocre is asking too much.
    Some Chimbwi-lee a “copper stone university” graduate will spend some sleepless nights over this wise statement from HH and as usual Chimbwi-lee will come up with a hate filled incoherent Press release to counter the wisdom of HH.

  7. Lazy bum Zambian government is all about corruption and by elections . If the won’t have enough rain this year and early next year meaning that loading will never finish . We’re on earth can someone invest in a country without electricity and weak currency . Zambians lungu Christmas is coming , no electricity , no money in the pocket . I hope people who voted for lungu on dullness are enjoying the poverty more is its still coming .

  8. This is were the PF cadres pretend not to see this article because the stuff is beyond their comprehension. They have my sympathy though.
    One or two will eventually come out here and type some ridiculous religious accusations to satisfy and justify ignorance and poverty.

  9. Day dreaming by the UPND leader ! He has never worked in govt and does not understand how govt operates.Let him begin as ward Councillor in Monze in 2016 and fifteen years there after,he may gain some experience.Zambians will not do trial and error but will vote for continuity.This money is being well spent and we are able to see tangible development in every corner of Zambia.

    • Ati ‘ this money is being well spent…’

      Is travelling to NY with 200 people and hiring a private jet money well spent??
      These PF suppoters indeed think like theives like their leaders. Zambia is doomed.

    • Comment:What timely advice are u talking about?.The pf chaps are thieves by blood.Giving them more time to rule will bring in more damage to the economy.Our economy is currently heavly bleeding due to pf’s incompetence.Our hope is only in our beloved HH.

  10. These chaps are talking about electricity as if they have powers to create rain…..they are talking about copper prices and the dollar as if they are in charge of the global economy,they talk about beer as if they don’t drink themselves and as if they will close all bars and hotels if they won elections .Are they insinuating that all of us who drink beer in Zambia should never give them a vote ? I cant waste my vote on such pretenders.

    • HH is not saying he will make rain or improve the global economy, what he is saying is he will provide situations like improved manufacturing and value additions where zambia is cushioned from such effects instead of blaming everything else and pointing to what our neighbours are experiencing.

  11. Jane from your posting one will quickly conclude that you equally in need of financial literacy. HH is giving us practical examples of how this euro bond could have been used. What sort of a country do you want Zambia to be if all of us had to first become cadres then Councillors etc, I personally think your contribution to this topic is so shallow please counter what HH said explicitly, how well you think the money could have been utilized. Of course typical of the “day dreamer” that you are you resort to stupid advise. Jane perhaps you are in Zambia the economy must be bad for you as well because we are buying the same expensive Kapenta.

  12. @musanide
    It is you who is a UPND cadre and not Jane.U don’t even seem to understand the relationship between govt and politics ! Governing a country is not as easy as milking animals in nega nega.Little wonder your voting pattern is rotten because you have no experience on how a country is run.Stop criticizing others who are entitled to their opinion.

  14. Look Mr HH you should be more worried about the job losses in the mining industries but we know who you represent and that is why you and late Mazoka want foreigners to take over our national assets at cheap prices. The forces that HH works with simply do not wish us well, and continue to do their best to destroy us as a country. We can take a look at this quote form Time magazine, “The objective of the war is not to make UNITA win a war, but to devastate Angola and make the people lead wretched lives.” (TIME, August 10, 1987. p.33). I am always astounded by the sheer amount of projects Edgar C Lungu has engaged in his nine months in power. From a robust foreign policy engagements, to energy research, to workers houses, to modern road networks to agricultural projects, giving this man…

  15. HH has given PF very good advice, Lungu does not even one day ever talk about the countrys economy because he has no idea what’s so ever all he knows are insults then pretend to go to church were he has never belonged to any church. He needs to be removed next elections this is no longer a joking matter. Zambians wake up.

  16. continued….giving Edgar another 5 years will leave his indelible signature all of over the place.

  17. Even Lungu said ifintu na filubana. You might hate HH but the least you can do is consider his advice. It makes total sense to even the dumbest of people. I just wonder what level of dumb those who are politicking about this are.

  18. HON HYENA HH, TELL US HOW YOU CAN HANDLE LOW WATER LEVELS IN LAKE KARIBA (LOADSHEDDING), LOW COPPER PRICES ,ALREADY YOU GAVE US ONE ON MINES THAT OF BRING ANGLO AMERICA WHICH IS OFFCUT WAY OF THINKING. IT SHOWS YOU ARE VERY SELFISH.TELL US AND CONVINCE PIPO THAT YOU CAN HANDLE THINGS DEFERENTLY.REMEMBER WHEN YOU SAY IT OUT PIPO WILL KNOW THAT YOU ARE CAPABLE NOT THIS PRIMITIVE WAY OF ATTACKING EVERYTHING DEVELOPMENT,WORDS,SENTENCES,COMAS,SLEEPING,DRESSING.BEMBATRIBE. IN SHORT YOU ARE CHILDISH AND EDUCATED BUT STILL PRIMITIVE.I WAS UPND BUT BCOS OF YOU~CHANGE FOR YOU GET VOTES 20YRS FROM NOW. LUNGU HAS WORKED HARD OTHER NATIONS HAVE POWER SWITCHED OFF INCLUDING NIGERIA,TANZANIA,ZIMBABWE,ETC ZAMBIA IS STILL FIRM AND BIG NATIONS ARE LEARNING FROM US.VIVA PF VIVA ECL

    • Other nations are learning from us?? Really? And what nations would learn from a country with the worst performing currency??

    • You don’t have to type anything if HH advice makes too much sense for you, we do understand your lack of understanding and you have our sympathy for sure.

    • When writing emails or any web content on the internet, there’s a general rule that frowns upon the use of blocks of capital letters. It’s seen as shouting and as such deemed aggressive behaviour or poor etiquette. There are exceptions to the rule, most commonly for short headings, where uppercase type can bring focus to a specific section. Or, of course, if the intention is to actually shout at the recipient.

      Instead of capital letters the recommended approach is to use italic or bold text. It’s surprising how the current generation of web users aren’t aware of this. Perhaps it’s laziness or maybe it’s just plain ignorance. Our advice? Follow these simple rules of Netiquette and you’ll be fine.

  19. Sadly UPND is bedevilled by leaders with neo-colonial mind-sets, who believe that we should remain appendages of unbridled capitalism. HH would rather listen to the corporations that want to pay pittance for Zambian mines. HH knows this and unfortunately he enjoys this nonsense.

  21. Pretty yu are nice i have heard MWEBANTU MUBELELENIKO ULUSE HH ALILEMANA MUMUTWE.TAKALEKE ALILEMANA MUBONGO KWATI NI MMEMBE

  23. kikikiki ba Kalusa mwansekesha sana. awe alilemana ngeshina lyakwe ati H icilema. Mweleleniko mwebantu uyu under 5

  24. It will take another 30 years to panel bit some people’s thinking bcoz even sensible things does not make any sense to them. The topic is talking of something and they will comment on something totally different. Am sure portholes had deepen in their heads.

  26. Just wondering? ?? Has HH ever agreed to anything by the ruling party (PF). Are you telling me no one in PF thinks? Does it mean think tanks are only in UPND??? There are technocrats at Ministry of Finance & BOZ who
    give timely advise. I believe whatever decision made by PF is done in the interest of Zambians. Let’s give PF a break, so that they can perform to the expectation on the masses. We know about the economic crisis but we still believe they will turn things round…

  28. There is just too any unnecessary statements from this hyaena HH. Who is behind him? Anglo America will never be allowed to scratch our land never again. So iwe HH forget it! We know your evil plans with your masters and don’t pretend you represent peoples views.
    Go and tell your sponsors that in Zambia am rejected.

    • Why would Anglo America even want to come to Zambia? because of your tu ma run down copper mines?? Pleas, copper mines are all over the world going cheap. Anglo American can not go mines rejected by Chinese and Indians.

  29. The technocrats and economical advisers are being ignored. The reason being the harp hazard projects are a means to steal government money by inflating contractor invoices.
    You don’t have to type anything if HH advice makes too much sense for you, we do understand your lack of understanding and you have our sympathy for sure.

  31. Problem with HH is he condemns everything the PF does. Even a dead watch is correct twice a day. Until he learns to give credit where it is due, he will remain a loser. Does it mean next year’s budget is all about consumption? Thought I head ABC talk about infrustracture development, CEEC, and many other projects. Where did HH see consumption only? Slowly HH is becoming irrelevant to both our economical and political situations.
    If the economy was collapsed even him and GBM would have been loosing out.But they are still making dough to invest some in politicks.

  32. PARLIAMENT TOLD HOW BOND IS TO BE USED

    All you need to do is to refer to the article from last Thursday where mvunga explained about the bond usage not what HH is talking about. Learn to compare facts and see who is telling the truth. Of course HH has again blown it out of proportion. Who says you only budget for consumption? Mvunga highlighted how the bond will be invested in nearly all sectors of the economy not that the bond will be used for consumption. No No no. That’s why HH chilema.

  33. ……….PARLIAMENT TOLD HOW BOND IS TO BE USED

    All you need to do is to refer to the article from last Thursday where mvunga explained about the bond usage not what HH is talking about. Learn to compare facts and see who is telling the truth. Of course HH has again blown it out of proportion. Who says you only budget for consumption? Mvunga highlighted how the bond will be invested in nearly all sectors of the economy not that the bond will be used for consumption. No No no. That’s why HH chilema…….

  34. Instead of posting crap, why dont you refer to the article where mvunga told parliament how the bond has been utilised. Infact he didn’t say the bond has been used to finance consumption for 2015/16 budget. He talked of how they invested it in almost all the major sectors of the economy. HH is best at misleading his minions. Just read mvungas story and you will judge for yourself who is a real clown.

  35. Which group has used more insults than the other? what could be the main reason? pliz lets work on the ability to respect each other. we are all God’s children

    • We are God’s children except for the PFoolish ones. I can’t believe God created such dullards like Lungu and Chimbwili.

  36. The problem with HH is that he is not practical in all his speaches, Sata would always pause and give an Example. Let him tell the people which projects in the 2016 budget are consumptive and which ones he thinks will generate revenue coz most Zambians will never listen to his always condemning.

  37. Imagine and ba UPND think it’s timely advice what ka HH has said. They should know that he is just politicking remember that’s what Sata used to say about RB . It was always this corrupt government, i will reduce expenditure, i will reduce size of government etc. So here comes ka HH with the same old tune NO we can’t buy that story anymore SORRY BA UPND

  38. @IQ138 if insults were votes HH would easily win with your inputs. Your failure to debate but insult tells me you are not in our category, better go to watchdog and join other insulting uncivilised souls. I feel sorry for you because you can not analyse critically. If only you were travelling you would know that Zambia is still better than some countries you think are better.

    • As to traveling, I am traveling more than your blind “Visionary” leader. Only difference, I am paying for my own expenses.
      I pity you for setting comparison bar so low that you are comparing Zambia to the other failures instead of setting benchmark where wealth of natural resources can be justified.
      Just try to make comparison with Singapore instead of Lesotho and then speak about “achievements” (lol).
      As to voting and wining, frankly I do not care. I just hope and pray to God that the next President will be able to reverse decline which started with RB, amplified by Sata (RIP) and now in a free fall without any sense of direction or purpose.

  40. HH TELL US WHY SATA DECIDED NOT TO WORK WITH YOU? WE KNOW HE CALLED YOU UNDER 5 BCOZ YOU HAVE NO QUALITIES OF A PRES. YOU HAVE NO NATURAL LOVE,PATIENCE,TOLERANCE,UNPLANNED SPEECHES,FORGIVENESS,TRIBAL,PRIDE,THIS TIME YOU WOULD HAVE BEEN PRES. YOUR CHANCE WAS GIVEN TO ECL.YOU CAN GET IT BACK BY HUMBLING YOURSELF LET PIPO SEE THAT U HAVE CHANGED THIS CAN TAKE NOT LESS THAN 15 Yrs

  41. @IQ138 TELL ME, WHAT DO YOU GAIN FROM INSULTS? HOPE YOU ARE NOT TEACHING YOUR CHILDREN TO INSULT WHEN THEY RUN OUT OF IDEAS. INSULTS DO NOT CONVINCE ANY PERSON TO CHANGE THEIR MINDS. THEY JUST INDICATE THE LEVEL OF A HUMAN BEING INSULTING. JUST STATE FACTS. IF THEY MAKE SENSE PEOPLE WILL LISTEN.

  42. Spot on @John Chinena give us facts not insults convince us that HH will make a good President not just having an orgasm each time you insult the Head of State

  43. HH does not know how Govt operates. Spending Govt money outside the budget items is an offence. The Eurobond is now Govt money and it has to be spent on budget items that have been approved by Parliament. The budget contains capital projects such as water reticulation, road construction, energy etc. He should be subjecting his statements for review within UPND before releasing them to the public. His Know it all Approach is not helpful to his cause.

  44. I totally agree with HH’s general views on the need for extreme prudence on invest choices for borrowed money. PF need to wean theselves from populist policies because tgey lead this country nowhere. However, I do not see how HH’s suggestion of investmenting in training community health workers will create jobs that will repay a loan – just how? Is this not the same consumption he is condemning? I equally do not agree that K10 million can provide water for 2.5 million people. Is he talking about one off provision from water bowsers or a full fledged water recirculation system? If it’s the later he better revisit his figures

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