DESPITE 2016 being an election year when the temptation to spend is high, President Lungu will continue with his tough economic management approach to ensure that the economy rebounds.
Speaking on a special programme on the Zambia National Broadcasting Corporation (ZNBC) anchored by Brian Mwale, dubbed the President’s Diary 2015, aired on Friday night, President Lungu’s special assistant for press and public relations, Amos Chanda, said economic management will be the President’s biggest diary item for this year.
“The President will be pre-occupied with tough economic management approaches so that we get the Kwacha back, we want to see inflation brought down, the President wants to see stability in the mining sector.
There are conversations going on about the mineral royalty tax system, the mining companies are talking to the relevant ministries. The President is confident the Minister of Mines and the Minister of Finance will guide the sector to a more acceptable tax regime,” Mr Chanda said.
The fall in commodity prices, including that of Zambia’s major export earner, copper, has led to job losses in the mining companies while power shortages have further strained the country’s economy as the Kwacha also depreciated considerably against major currencies.
To stem the downward economic slide, President Lungu responded in November with a range of spending cuts that include not starting any new construction projects, deferring construction contracts where possible, focusing on completing projects already under way as well as delaying the establishment of a national airline.
On the Friday programme, which touched on a broad range of issues including Zambia’s bilateral relations with other countries, the President’s international visits, his religious faith, and his support to sport, Mr Chanda re-affirmed the President’s commitment to getting the economy back on track.
He said a lot of factors, both local and abroad, have caused damage to the performance of the Kwacha, including some irresponsible remarks. A number of measures available have had to be undertaken by the central bank to stabilise the Kwacha, but he says this does not amount to a return to statutory controls as President Lungu remains committed to a free market economy.
In the past one month, the Kwacha has rebounded from around 14 to the United States dollar to an average of 10.
“There has been a remarkable stability of the Kwacha over the past one month. Going forward, the President wants the currency to remain stable as it appreciates,” he said.
“… With the energy sector stabilising, with the rainy season looking quite okay, we should see the economy rebounding.”
This will be helped by interventions such as “to cut unnecessary expenditure, to cut unnecessary imports” that will save the necessary forex.
Mr Chanda also talked about how the President’s foreign visits benefited the country with, for instance, China providing a concession loan for the solar milling plants that are reducing the cost of mealie-meal; and agreements with Angola regarding an oil pipeline, rail and road links and food exports by Zambia.
He also disclosed that the President has received invitations to visit the Pope in Rome and to undertake a State visit to France next month and that Ugandan President Yoweri Museveni will be sending petroleum engineers to come and assist Zambia in oil exploration in the north of the country, where it is believed there could be reserves.
Mr Chanda said Zambia’s great international recognition is back as it has reclaimed its place in the international community of nations.
“It’s significant for me to highlight to you that President Lungu was the first Zambian President to address a special session of Parliament in Angola… this is the great honour given to Zambia,” he said.
Ka Amos ubukopo, the kwacha has moved from k10 to k11, so what appreciation of the kwacha are you talking about?
Tough economic management means you don’t waste money on hostng a signing ceremony of the amended constitution at a stadium while paying civil servants a full days wage for only working half a day. Learn from the advanced ecomonies if you want tough economic management
Since you have committed to economic management, We will measure your economic performance based on employment %, inflation rate, exchange rate, foreign debt. So far kabotolo Lungu is performing badly in all these metrics
Meanwhile The real economic manager HH Aleisa
Amos is slowly deteriorating to levels of Chishimba Kambwili, Davies Chama and Mumbi Phiri. Edgar Lungu has no idea about the economy. He is as raw as they come. E.g Edgar solution to high mealie prices is solar mills, while HH thinks and right so, that we have to lower cost of inputs and improve on agrees methods so we can have more maize produced per hectare than we currently do. No vision , no plan= Edgar Lungu
Comment:
Forward with HH
Yes ni forward chabe
Ba Amos Chanda we know that it is so difficult for you to produce such words from your mouth given what the Zambian people are going through economically. Any way we know you are paid for that. But time will be our liberator.
I never liked Amos’ perpetual holding to the position of PAZA vice president & overshadowing his president but he sounded measured & intelligent then. What have they done to this guy? I remember him standing up for pfc of the post but he seems to passionately loathe them now for their telling him the truth. What he’s doing is not spin. Its plain stup!dity laced with hate.
Dancing at annual balls is not focus. Appointing journalists or bishop to sort out energy is not focus. Please dont make statements about focus with Lungu in it.
So what this Chanda is saying is that Lungu has only sobered up and realised that the economy has crashed NOW !! ??????
After the Kwacha has lost half it’s value, mealie meal prices have doubled, we have no water and electricity, and thousands of people have lost their jobs ?????
Give us a break Chanda, you cannot insult our intelligence like that. We can see exactly what has happened.
AND WE KNOW WHO’S INCOMPETENCE, STUPPIDITY AND NEGLECT OF DUTY HAS CAUSED THIS !!!
What you need to tell us is just how Lungu is going to fix all these problems now that PF has squandered the TEN BILLION DOLLARS OF KALOBA THAT THEY BORROWED !!!!!
Not these empty statements you are mouthing out now !!!
Yes, Amos we know Lungu is focussed on mismanaging the economy. You cant cheat anyone on this one anymore, it is there for everybody to see. Your Govt in particular your Lungu has not shown any leadership in this crisis after crisis situation we are in. The damage you have done and are still doing to the country will be very difficult to undo. You have embarked on the borrowing spree and i have a suspicion there are loans that you have contracted secretly which will come to light when you are ejected out of power. So my humble advice is please shut up!!
If is “focused on economy”, why is waiting to ratify BIT’s? Without ratification of BIT’s, who is stupid to invest?
Everytime this guy opens his mouth, makes me sick! Dude please do some research before you open your mouth.
One Love!