There was unnecessary drama, some misdirection, in the House on Thursday 25th February, 2016 on the occasion of the Motion to raise the ceilings on both internal and external borrowings and guarantees to enable the government to have the necessary leeway to seek recourse to facilities to bridge the resource gaps necessitated by development imperatives. The motion was debated with expected and legitimate passion and in the process some misplaced political overtones were infused in the debate which made it binding for the government side to reply in an equally robust manner. This irked sensibilities on the other side of the divide.
-At the time of the Highly Indebted Poor Countries (HIPC) relief in 2005 the Gross Domestic Product (GDP) of Zambia was US$6 billion against the external debt of US $7 billion far beyond 100% of GDP.
National debt in any country cannot be a matter of indifference and efforts or even crusades by segments of the population that feel an inescapable duty not to encumber or lumber posterity with unsustainable debt burdens should not be dismissed lightly or with scorn. Zambia, a decade ago, escaped the debt trap by going through a rigorous programme under the supervision of the International Monetary Fund to accumulate Special Drawing Rights to service part of its debt. The balance was taken care of by write-offs from the developed countries. The debt overhang and the rescue mounted by the international donor community has remained firmly implanted in the national psyche.
However there is compelling need to contextualize things. At the time of the Highly Indebted Poor Countries (HIPC) relief in 2005 the Gross Domestic Product (GDP) of Zambia was US$6 billion against the external debt of US $7 billion far beyond 100% of GDP.
The current situation is that the external debt, excluding those debt contractions that are in the offing, is just over 38% of GDP – much lower if the World Bank computation of Zambia’s GDP in the World Development Indicators of 2015 at US$26 billion is used. This favourable or reasonable external debt situation does not negate overall concerns about external debt because annual debt servicing is quite a stiff requirement especially when adverse movements in the exchange rate are factored into the equation.
The current situation is that the external debt, excluding those debt contractions that are in the offing, is just over 38% of GDP
All countries in the world have internal and external debts. For countries like Japan with a national debt of approximately 240% of the GDP, debt may not be a preoccupation because the bulk of the debt is internal and can therefore be rolled over eternally. The turbulences and headwinds on the global economic front call for circumspection and assurance that internal growth prospects will facilitate external debt service.
For Zambia the budget deficits are not only a result of inadequate revenue inflows, but also the need for quicker development pace against the backdrop of huge development arrears. There is no alternative to rational borrowing, both internally and externally.
The discussion should centre on the use of borrowed money particularly on whether the money is on growth promoting projects which enhance our productive capacities and hence sustainable means and ability to service debt obligations which have time sensitivity and immutable time frames. The Patriotic Front administration has used the borrowed money to accelerate the country’s development process by investment in infrastructure and other growth sectors that have not received adequate attention in much of the post- independence era.
After HIPC, the government generated growth rates averaging 6% to create a development momentum which has gathered pace in the last four years of PF administration. Because of backlogs of development arrears, the impact will take long to show on account of inevitable time lag effects but it is an indisputable fact that development is more widely spread now.
The discussion should centre on the use of borrowed money particularly on whether the money is on growth promoting projects which enhance our productive capacities and hence sustainable means and ability to service debt obligations which have time sensitivity and immutable time frames.
Deceleration in the global economy particularly as manifested in the low commodity prices has sent shocks in all fragile emerging economies and we all have to brace for tougher times until we adjust and re-energise our economies to absorb shocks by utilizing the diverse endowments that confer a range of comparative advantages like solar, thermal and hydro power in the energy sector. Investment in irrigation will not only ameliorate yields because water is controlled and the crops are grown when there is less proliferation of insects, but circumvention of seasonality of agriculture can be profoundly salutary.
The world growth prospects do not look exceedingly cheerful and the prognosis may be gloomy for quite a while. Western countries led by America have tried to stimulate economies by all kinds of methods that include the quantitative easing (QE) – the purchasing of government bonds by central banks to facilitate new bonds.
This sophisticated way or euphemy for printing money, has run into hitches because zero or near zero interest rates impair the liquidity of banks and limits central bank monetary options when the interest rates are already near zero point. In the scheme of things, many western experts have pined hope on China to add impetus to the global growth momentum through consumer driven demand.
Africa has the youngest population which if equipped could yield beneficial demographic dividends. Regrettably we have no resources and requisite social organization to invest in turning our young population into a productive resource.
The scenario makes a presumption on average Chinese buying power. The sluggish growth in the Euro zone slows global growth very significantly. Western Europe, the size of the Congo Democratic Republic has a bigger GDP than USA. That small area of the world has 6% of the World Population but accounts for slightly more than 30% of World trade.
Africa has the youngest population which if equipped could yield beneficial demographic dividends. Regrettably we have no resources and requisite social organization to invest in turning our young population into a productive resource. These are the challenges that should preoccupy us and demand our concentration of energy.
Now the episode in Parliament.
The Hansard will show no offensive language was used nor was any grouping in the country singled out. In response to the assertions by members of a party that the Patriotic Front would be routed, I suggested that a Party which some members belonged to would never be elected by Zambians to be in government because of that Party’s exclusivity in terms of origin of the leader at the helm.
When the Speaker, whom I hold in highest esteem for his depth, knowledge, fairness and unassailable integrity requested for withdraw of the remarks I indicated that I was morally constrained to withdraw remarks that were not in any way offensive. I have scrupulously respected all colleagues on both sides of the House.
Our candidate, whatever the share of human frailties, is outstanding. Zambians will want a man of humility and ingrained humanity.
PF is strong and invincible at least in this year’s election. The development agenda and programmes of the last 4½ [four and half] years form an impeccable track record and success story. That the country is experiencing hardships now will not negate the many positive achievements made by PF.
Our candidate, whatever the share of human frailties, is outstanding. Zambians will want a man of humility and ingrained humanity. President Lungu’s humanity and sanity levels are beyond doubt and he is decidedly cerebral which does not give him a chip on his shoulders.
All of us Zambians like all people all over the world have strong emotions of attachment to our cultural/linguistic groups. We cannot abolish those natural traits and attributes in man. What we vehemently oppose are those tendencies which foster hostility to people who speak a different language or live in a different corner of the country or this planet.
Political parties should be used to advance the frontiers of our common humanity and fellowship. This is the wake-up call to the apostles of fascism however they dexterously disguise their little evil intention and agenda.
Alexander B. Chikwanda, MP.
MINISTER OF FINANCE
2016 vote PF ( Edgar )
I thank you very much
Give me two reasons why i should vote for PF (Edgar)
Why is Chikwanda interested in such stuff. GBM needs him, he is his cousin.
The UPND has very little understanding of global economics. The price of commodities have gone down. The global economy is under stress.Retrenchments are not peculiar to Zambia.I am voting for the PF and ECL…….HH has become like that product in a shop or market that people keep looking at without buying it and all what the seller does is to dust it everyday.
Chikwanda has the infamous record of having ruined the Zambian economy twice in his miserable lifetime. He can explain as much as he wants until he frothes at the mouth. He has overseen the plunder of the Eurobonds although he is an unelected “politician”. He is where he is by virtue of his birth, family relationship with the corrupt and violent late Sata.
#ChagwaMustFall
We PamaFi are so Full of Shi..te we don’t even understand a word Dinosaur “ka red” is on about!!
We know his brains as still WIRED TO 1970’s economics which he messed up though our copper earnings at the time were good, this time around with, dementia he cant remember HIPC!!
Am sure Chagwa had a word with him about the fracas in parly hence the self explaining, NEVERTHELESS #CHAGWAMUSTFALL!!!!!
I thank you very much
Uko!
IMF is now on PFs throats of their short legs of lies.
Now IMF has been called by visionless PF for a BAIL OUT as Zambia’s debt is over $10 billion & inflation rate overwhelmingly above 23%. So, Zambia again will be imposed with austerity measures, which will see the country back to Structural Adjustment Program (SAP) during FTJs reign.
All mines & other properties in Zambia will be taken over, in other words, confiscated or KUJANDA.
This happens when you have a VISIONLESS Govt like damnwits PF of Lungu.
Mwapya!
The Skeleton Key
~206~
Having read through this article, Chikwanda, you are saying referring a party to a region is fine with you as long as that reference is not in anyway referring to the region you come from. It is disappointing to note that you strongly feel the other people have no right to react to your tribal sentiments; yet that position you enjoy draws a salary from taxes paid by all people of this country even the region you dislike.
On the borrowing you are accelerating the borrowing yet the global economy is decelerating as you have put it. This is truly against all odds.
The English used sounds childish coming from a senior citizen. It is like trying to conceal something by using bombastic words. Ooh! Childish sorry.
Chikwanda amu chena ba mambala ba UPND. I think you now know that the man you call Kaponya is more deep than your HH. Its funny most of u cant challenge him but resort to insults becoz u don’t understand what he is talking about. You have been flying around like houseflies claiming PF has over borrowed. There you are. You have the answer.
You can now continue insulting. Insults are free only that the person issuing them graduates from being sensible to becoming a FUUUL.
2016 vote HCL
Whoever doesn’t understand what Honorable Chikwanda is saying should feel free to call me so I can explain to them in their mother language.” If you talk to a man in a language he understands,that goes to his head,if you talk to him in his mother language,that goes to his heart” Nelson Mandela
By the way I speak 43 Zambian languages very fluently
2016 vote PF ( Edgar )
I thank you
@ 1.1William Tekere former chakuti chakuti
What’s your mother language my dear friend so I can explain to you in your mother tongue 2 reasons why you should vote for PF ( Edgar )
I thank you
@1.5
You need deliverance my dear friend…try to be original..it helps…..stop copying things you have no idea what it’s all about….you sound like a parrot . Typical Zambian
2016 vote PF ( Edgar )
I thank you
THAT’S THE BIGGEST POINT. EVERY COUNTRY IS GOING TO BORROW MONEY FOR IT’S DEVELOPMENT AGENDA. WHAT IS AT STAKE IS NOT BORROWING. BUT, WHAT THE MONEY BORROWED WILL BE USED FOR. IF IT IS FOR CONSUMPTION THEN BETTER NOT BORROW. HOWEVER, IN ZAMBIA’S CASE SINCE PF TOOK OVER, MOST IF NOT ALL FUNDS BORROWED HAVE BEEN USED FOR INFRASTRUCTURE DEVELOPMENT. WITHOUT NECESSARY INFRASTRUCTURE THERE CAN NEVER BE DEVELOPMENT IN ANY COUNTRY. GOVERNMENTS WILL JUST BE GOING ROUND IN CIRCLES OF POVERTY ERADICATION WITHOUT ANY SUCCESS. THE ABOVE EXPLANATION BY THE MINISTER IS EXCELLENT AND LEAVES NO STONE UN TURNED.
Hon Chikwanda with due respect I don’t agree with that Zambia is better off economically now.I also don’t agree with you that our GDP is $26Billion hence giving as a 38% with more space to borrow.Why do I say so if the above was true how can we explain the dwindling National reserves to the levels never before were we can not sustain a country for six more months.Inflation at 23% is an accept in a country with only 14 million people with $26BillionGDP.You want to sound intelligent by using to ma bombastic words.Even My grand mother in the village knows that Infuntu tafili bwino unlike those cheap lies using fake statistics. poor Zambians can not eat those fake figures.Please stop dispising other tribes when the same tribes are enjoying your daughters.
You can not ride on the horse of developmental projects while the people you are building those projects for can not even afford a meal a day. Mr. chikwanda you thinking is beyond any normal human being, look at Japan and the living standards of its people, More than 95% of it population live on more than $7.00 per day as compeered to Zambia where more than 90% of people live on less than a $1.00 per day.You can build as many roads as you can but if your people can not afford food, clean water, good hospitals then your projects are in vain. Lets look at what you have done for the people since you came to power, how many have been lifted out of poverty, how many have access to clean water, good hospitals etc, if anything the poverty levels have gone up since PF came to power. Wake up…
So much hallabaloo for nothing Mr Minister your government has shown no foresight to tackle global issues the success of governments later on ancient kingdoms is to have foresight and the ability to read cyclical trends to avoid such calamities. It’s folly for Chikwanda to say the these investments in roads etc were well thought of when they prioritised compound/township roads and the real economic roads such as Nakonde, solwezi chingola roads have been last on the list … So what’s return is he talking of if not for political expediency. … Zambians, and I mean real well meaning ones let’s transcend above these narcistic self absorbing politics Zambia is bigger
Bwana Minister doesn’t even have his own stats still quoting third party figures how does he monitor his KPIs …. Shame shame whoever is a supporter of this article is not Zambian
Bwana Minister deliberately quotes third party because the take long to be updtaed, he has his figures but they are so BAD and EMBARRASSING!!
Chikwanda is indeed a fossil. That is why Lungu is a flop with such guys as minister of finance. The economy has failed in all sectors but we still have the same minister of finance, SHAME. Serious countries dont keep people fit for the archives. Zambia is in the mess it is today because of UNIP policies and Chikwanda was part and parcel of the distruction.
Mr Chikwanda, please stop patronizing zambians. your assertions are tantamount to calling zambians fools. read your article and see if it makes sense. what a shame
really,
have really read the article?
do not just comment for the sake of it.
or is it that maybe you have read and not understood its contents.
@ really
I think you are the one that needs to read the article please feel free to Google some words in case chizungu chakuti ta
2016 vote PF ( Edgar )
I thank you
@ really
I think you are the one that needs to read the article please feel free to Google some words in case chizungu chakupita
2016 vote PF ( Edgar )
I thank you
@2 READ THE ARTICLE FIRST BEFORE YOU COMMENT. OTHERWISE, YOU HAVE JUST COME OUT AS A BIG F00L. ALTERNATIVELY, IF YOU HAVE READ IT THEN YOU DID NOT UNDERSTAND ANYTHING THE MINISTER WROTE. MAYBE THE SUBJECT IS TOO DEEP FOR YOU. TRY TO GO TO SCHOOL FIRST.
“….seek recourse to facilities to bridge the resource gaps necessitated by development imperatives.”….Therein lies the deceptive tone of Hon. Chikwanda’s statement. Consider this – what development imperatives did PF accomplish with previous debt ceiling increase? These debt ceiling increase tactics only serve to create a channel of funds into the PF petty cash account. I agree that Hon. Chikwanda should stop patronising zambians.
So much hallabaloo for nothing Mr Minister your government has shown no foresight to tackle global issues the success of governments later on ancient kingdoms is to have foresight and the ability to read cyclical trends to avoid such calamities. It’s folly for Chikwanda to say the these investments in roads etc were well thought of when they prioritised compound/township roads and the real economic roads such as Nakonde, solwezi chingola roads have been last on the list … So what’s return is he talking of if not for political expediency. … Zambians, and I mean real well meaning ones let’s transcend above these narcistic self absorbing politics Zambia is bigger
But at the rate you are borrowing, it looks more and more that you are dragging the country into the highly indebted poor Country (HIPC) zone. By the end of this year, that external debt will jump from 38% to 50%, and before you know it, it will be 75% and you will still be borrowing until you hit 100%.
Do the right thing. Resign and let someone else manage the economy of this great country.
ba chikwanda ichidikeni
This man is deep!!!! Only the enlightened can appreciate the depth of this speech, and the wisdom thereof.
Viva PF! Viva ECL! You have the votes.
You deserve continuity !
Show me a president with worthy qualities , and I will Show you ECL!
@Mweetwa
This is really deep my friend….it just melts your heart no matter how hard hearted you are….am sure most UPND will now join Team PF and help move Zambia foward
2016 vote PF ( Edgar )
I thank you
Hehehehehe… fool
Deep indeed. We are in a DEEP sh1t thanks to this senile 1mbecile who has been doctoring all statistical data for the past 4 years.
As to “enlightenment”, Mweetwa, Katondo boys and MMD Chief Bootlicker, stop halucinating and kraping in public. Enlightenment and Chikwanda is the same as embezzlement and honest leadership.
I assume most off these PF cadres are either e-trolls of the party & benefiting from the party’s corruption or they are in diaspora & don’t have the actual feel of what is really happening on the ground.
Chikwanda, sounding so intelligent but his works tell otherwise. Unfortunately some people will be caught in his web of sugar coated english dictionary words. Don’t be fooled, the devil doesn’t have horns or red eyes as portrayed!
The old man directed a few shots at a well know tribe. I mean he is clearly indicating that we must not use our tribe to think.
Chikwanda speaks with a forked tongue. He blinds the unwary with platitudes but he oversees the Bemba mafia running govt. Only a PFool will trust and believe him.
#ChagwaMustFall
First of all he is deceiving those of you who don’t understand economics regarding the present debt to GDP ratio. He used the $26 billion+ GDP mark which existed when the exchange rate was at K6:$1; presently the exchange rate is at K11.3 to $1; this means that your GDP $26 billion economy is now a $14 billion economy! That means the debt ratios have gone up because of depreciation! Furthermore by raising the debt ceiling he now can borrow in excess of 100% of GDP! Japan is not Zambia, most of its debt is owned by Japanese in Yen whereas the larger part of Zambia’s debt is held by foreigners in USD. That’s a big difference. Further Japan’s yields are low- presently negative whilst Zambia’s are extremely high both in dollars and Kwacha. This man is taking us for fools. People need to…
I have always said that Big Alex was the only sane and sensible person in PF under Sata’s rule. And you can clearly see it in his writing, reasoning and how well he understands the issues at play, particularly his challenge on the African youth Population dividend. So refreshing to read something this deep, than they typical it is my money that made you president.
Big Alex keep it up and please continue to share more of your thoughts and insights. People are also forgetting that you have been a successive Businessman outside the politics.
Ni ‘SUCCESSFUL’ naimwe, mwaba ‘outside the politics’ mu mutwe!
@ MMD Chief Bootlicker…You have amazed me on how you appease yourself by setting high standards you cant even attain…khikikiki…I am just wondering which school you went to even, especially that you cant spell correctly, and cant tell the difference between successive and successful… For now I suggest you go and look after your grand children…Good day
You speak well about the youth potential and yet you close their university indefinitely!
Let’s talk in Kwacha we have a 160 billion Kwacha economy, you have taken the ceiling to K160 billion so you have shown a willingness to borrow up to 100% of GDP. That $26 billion you speak of is neither here no there; that was at an exchange rate of K6 to the dollar- whilst now at K11.3 to the Dollar that gives us a GDP of $14 billion. Putting us at an overall existing debt to GDP ratio of 60% not the 38% you are speaking of. If you are going to be putting out such statements at least be intellectually honest instead of trying to deceive the electorate. You have been destroying the economy since you came into power in 2011.
Take it from me, Chikwanda is the master of deception with his flowery language.
He is deep to the extent that he can outwit the daft and get away with cash whilst you wonder what hit you!
AB Chikwanda should have shown us the projections of the economy once debt service kicks in plus the requirement to repay the principal. Where will the money come from? If at the moment you have to borrow for recurrent expenditure, what will happen when external debt service starts?
well explained @Thoughts,
These PF when they see big words in english they start cheering and dancing without understanding
I am a product of more than 3 tribes from 3 different countries. So what trIbe am I ? You Zambians wake up from this old fashioned thing called tribe, chiefs etc. Be liberated!
I don’t know for sure, but tells me something about one of parents, just saying
@ PF Leader
It tells me something about your fathers. Just saying…………
Economics of the 1970s. Can you give younger people with an education and right state of mind a chance please. Zambia has plenty of naturally resource that many country doing better can just dream of. With the right captain at the helm, prudent budgeting and sound economic management , the country can get very far
Full of bombastic words just meant to conceal his incompetence and crooked Ness. The comment was childish at the least.
#ChagwaMustFall
@11
Kukopela monga muwamya……..no wonder you belong to UPND the copy and paste party
2016 vote PF ( Edgar )
I thank you
All jargon & hot air. Instead of regretting lack of resources, why haven’t you invested the borrowings into development of the youth of the country. When the much touted infrastructure development has done its life (which is shortened by the shoddy works) we will still have an under developed human capital.
What was the point of referring to the ethnicity of UPND leader if what they said was they are going to rout your party. Instead of debating the strengths (if any) of your party you chose tribe because that’s the only levarage you have. What a waste.
Chikwanda is a tribal¡st and knows that the continued plunder by his ethnic group is at risk in August. That’s why these muggers are fighting tooth and nail to stay in power.
#ChagwaMustFall
Somebody needs to put this swine out of his misery before his stupidity kills us all.
How many times can someone bankrupt a whole Nation before we say enough is enough?
This crook should spend the rest of his life behind bars for his crimes against humanity. Not enjoying his ill gotten gains.
#ChagwaMustFall
Rubbish
“All of us Zambians like all people all over the world have strong emotions of attachment to our cultural/linguistic groups. We cannot abolish those natural traits and attributes in man. What we vehemently oppose are those tendencies which foster hostility to people who speak a different language or live in a different corner of the country or this planet.
Political parties should be used to advance the frontiers of our common humanity and fellowship. This is the wake-up call to the apostles of fascism however they dexterously disguise their little evil intention and agenda”.
Alexander B. Chikwanda, MP.
MINISTER OF FINANCE
Genius from ABC. HH and GBM should read this for their home work. They should avoid enclave politics.
But that is contrary to what he said in parliament about UPND. Is it your stupidity that you fail to see the fo.olishness and hypocrisy of this man. Whatever he has written here is rubb.ish. He is a total failure who thinks only him understands economics when all he has brought to our country is misery. Outdated kind of approach to managing the national economy.
Katondo boys stop changing names as if there are so many of you who support the nonsense.
Chagwa and humility are poles apart
Despite the fact that not all the points driven by this article do I believe in or concur with, the writer has proven to have a rich vocabulary in the Queens language. Bravo! Typical of a classical writer.
Chakwanda is talking about GDP at US$26bn, I challenge him to tell us the total local revenue generated from that GDP and whether that revenue is sufficient to pay off external debts he is contracting all over the world, and this is where the gist of the matter is. What is the economic structure/composite of his so called $26bn GDP? Mr Chikwanda using your GDP records alone to borrow huge sums is suicidal boss. Consider more national capacity is to pay back those loans from local resources which at moment is just about $3bn in 2016 which is about 12% of your GDP far less that the ratio of debt stock to GDP by almost 4 times. Are you competing with Japan and USA in contracting debts. I would rather you learn lessons from Greece’s case and not the first world economies you are referring to
It is not the surreptitious GDP of $26 billion that should be bandied around but the cashflow that this nation generates that should be interrogated.
How much revenue (cash is king) does company Zambia PLC generate in form of taxes that accrue to the Treasury? And if this economy is so productive, why has Chikwanda gone into a borrowing frenzy. In a space of a year or so, he has raised the debt ceiling five fold (460%) from K35 bn to K160 bn. Has the GDP grown that much or even a quarter of this mad borrowing acceleration grand prix style?! The answer is a resounding NO!!
I know Chikwanda personally. To say he is a successful businessman is to belittle honest hardworking and successful ones. I stop there.
@MMD Chief Bootlicker iwe, what part of this nonsense full jargon has excited you. I always suspect you of being an old retired lazy goat full of nothing but past regrets you want to portray the minister has a successful business man alas the question begs to be answered as to how certain worth was accrued bearing in mind the graft at the center of all these so called development projects. Chikwanda insulted the opposition period. And iwe bootlicker zhakla you are so zee with regard what is happening in your party MMD.
I thought that when people grow old, they become wiser, but this is not true for everyone. Some become s.tupit.
when G. Nkombo or HH tell me that they don’t understand the above i get to really doubt if they are being sincere. when GBM says he does not understand , that i can understand
useless old dinosaur..there will be no state funeral for you..na ntomba..
“PF is strong and invincible at least in this year’s election. The development agenda and programmes of the last 4½ [four and half] years form an impeccable track record and success story. That the country is experiencing hardships now will not negate the many positive achievements made by PF.”
Zambians say ubulimi bwakale tabutalalika mwana… Meaning the previous success stories don’t put food on the table. Today the minister acknowledges the fact that Zambians are suffering and instead of offering concrete measures to shortage of food looming in the country as early as March as witnessed in Kasama where residents are scrambling for the commodity, the minister decides to boast on how best they have implemented the leftover projects by the MMD government which they have done…
Personally l was absolutely disgusted when l hapened to go through this blood oozing article for this idiocity old man in this damn ‘poor family’ pf. For God’s sake l dont extract sense in these fakaz just raise the debt ceiling to this alarming rate of more than 100% threshold, this is utter nonsense. Did you know that dis damn pf debt ceiling $160 billion is three times our bugdet? What a debt record this fakaz have had as their own goal. Another pf self decampagning weapon at play towards 11 aug. The fact has it that they want to divesify these same monies to their elections preparation. By the way, we have some serious learned young fellaz who can take over from this old dinosaus from the school, to hell. Its zambia foward, pamberi nedzongwe with young blood- team HH all the way!
Behind the explanation is the commission he gets.
Chikwanda has a problem
In August when these crooks and thieves haven been kicked out, all Chikwandas businesses and money must be CONFISCATED and used to repay this DEBT he has gotten Zambia into!
How can this man be getting richer and richer while the ECONOMY is collapsing? PURE THEFT OF BORROWED MONEY!
Why is this man always justifying borrowing? Tell us something new as source of revenue for Zambia not borrowing.
….as Zambians, the moment we accept that beside other mistakes we have as a people in the recent past, appointment of ABC as MoF was the greatest of the mistakes….the problem is that he brought in outdated experience…it was like re-engaging a surgeon of the 1950s in whose time there was no anaesthetic…
Dokotor – and he is quiet on the commission he gets. And this old PF boot licker says successful business man. How come his businesses are doing so well while the Zambian economy he is running is down sizing. Ulichikopo iwe chi PF Boot licker. Uka chinje neshinalyobe from MMD to PF.
The dinosaurus is safeguarding his job in case Chagwa gets re-elected. One would hope they will be both bounced out. Enough is enough!
We have a Mugabe problem, entrusting old men with our lives is the worst thing we can do. This old man was with Kaunda for a long time hearing him preach about one Zambia one nation. He surely should be the grown up to teach lungu how to respect all the tribes. Right now he looks stupid trying to incite tribalism. He is also very outdated for current economics, that don’t rely on debt but investments to increase cash flow. Instead of contracting loans you should be signing trade deals, agreements and grants which are free. Loans are not a long term thing, like what this fossil thinks, they are other ways to generate cash for projects. Come chikwanda there better alternatives to borrowing. It is dangerous being one dimensional, you can’t be thinking loans day and night. Loans won’t…
Sustain us for a long time. You are just digging us deeper in a debt trap.
Fact is, you cannot grow a country’s economy by increasing external debt, increasing government spending (mostly political gratification) and reducing productive capacity. Those who think otherwise, advise on which country used this formula and succeeded in growing their economy.
When the PF kaponyas on here see big words, they get hard on’s with out understanding what they mean in the context of the discussion.
If i may borrow a simple explanation from one of the contributes , called ”Thoughts” from above. This is in plain English for the Kaponyas to understand….
Thoughts [A contributer from above]
” Let’s talk in Kwacha we have a 160 billion Kwacha economy, you have taken the ceiling to K160 billion so you have shown a willingness to borrow up to 100% of GDP. That $26 billion you speak of is neither here no there; that was at an exchange rate of K6 to the dollar- whilst now at K11.3 to the Dollar that gives us a GDP of $14 billion. Putting us at an overall existing debt to GDP ratio of 60% not the 38% you are speaking of. If you are going to…
@Spaka like lilo
Educate us kaili….Google isn’t doing us any good.
But imwe ma big brains what are you doing muma foreign countries? COME BACK HOME AND EDUCATE US.
2016 VOTE PF ( EDGAR )
I THANK YOU
Kaponya boys
How will I work if I come back, I have no relatives working in GRZ. Kambwili advocates employing only relatives……
This is Fossil Chikwanda’s tactic using alot of financial jargon to confuse the grade 9 MPs …yet all he wants is more borrowing and increasing the debt ceiling.
speech infused with tribal innuendos and hatred to deflect attention way from the lies and to give the tribal kaponyas erections……
@Jay Jay
Ulemu niwabwino please nakupapata…..
2016 vote PF ( Edgar )
I thank you
The earlier this man is removed from that position, the better for mother Zambia
It is not about percentages that are still low as you assume, that matters here, the real problem is what capital projects have you but in place that will generate or create cash in flow to be able to pay back the loans accumulated both internal and external, and continue to sustain the economy so that it may not collapse. This is where chikwanda was supposed to dwell much in order to convince us that these debts will not lead us into recession. @katondo boys that explanation from your uncle you so support, is half baked, or is like poison coated with sugar. When the economy will collapse you will be the first one to come out of your hole of ignorance, and threw stones at him because of hunger.
It’s very clear that the cheap lies of the UPND and it’s supreme leader HH have finally caught up with them and the only alternative they have now is to insult any one with a divergent view instead of responding to the issues raised by the mighty ABC…
Only lies has been raised by Chikwanda. That 28 billion GDP he mentioned is based an old exchange rate value.
UPND is pointing to IMF coming, cholera, meal meal at K100/bag, 23% inflation, agriculture and tourisim sectors in decline……
Borrowing of any kind does not help. We survived because of debt cancelling.
We are in big trouble. The next govt will have a hard start and ending.
I think the bone of contention with the PF led govt is not that they should not borrow for developmental purposes. The issue is on the rate at which Zambia is borrowing which is making the country to quickly sliding into a debt trap.
The problem with the PF led govt is that they want to prove a point that when they were in govt, development was rolled to all parts of the country but at what cost is all this being done?
If there was a bit of rationale in the manner the PF led govt wants to develop the country, there could have been no pandemonium in the economy.
The period of the import cover which directly ties with the amount of foreign reserves the country has and the rate of inflation speaks volumes.
So bwana Finance minister, dont hide in bombastic words. You are a shame!
Very inept minister of finance. Replace him immediately before he does more damage to the economy
Well spoken/written Mr. Chikwanda. You have dealt with the issue compendiously and those in an inescapable state of hebetude with regard to PF plans are not of your making and better left on the road side.
Well said. Can LT replay events immediately following the demise of a certain party’s leader? Were those events misreported or misrepresented? As much as I appreciate comments (some simply insults) I would to challenge each one of us to contextualize as much as possible what has been said. Borrowing is another matter. I am happy with new infrastructure and not maintenance work using borrowed funds. Where is the internally budgeted funds for maintaining infrastructure??
I don’t trust your Mr. Chikwanda, why has it taken him so long to tell us the detailed account of what happened in Parliament?
Nothing new about this article, if you read the news will find this information online. If you check trading economy website. Even the bibles say people die because of lack of knowledge. Some research for you and put piece of information together you get so excited like he has resolve the nation problem. Man will do anything to get what he want. Politicians are after what government jobs at your expense.
The Gross Domestic Product (GDP) in Zambia was worth 27.07 billion US dollars in 2014. The GDP value of Zambia represents 0.04 percent of the world economy. GDP in Zambia averaged 5.75 USD Billion from 1960 until 2014, reaching an all time high of 27.07 USD Billion in 2014 and a record low of 0.68 USD Billion in 1961. GDP in Zambia is reported by the World Bank.
PF guys question too you. Your minister is say the GDP of Zambia during HIPC was $7 billion is this true? Can you support this number with information from world bank or other economic agencies?
It Was 8.332 billion USD by 2014 we have reach 27 billion US dollars. Between 2005 and 2014 what development have you seen from government? Don’t talk about shopping malls or stadiums, pleese? We need infrastructure, upgrade to UTH …not, identify 4 project done then vote for PF
You are investing in projects whose “impact will take long to show on account of inevitable time lag effects” while acknowledging that “the low commodity prices have sent shocks in all fragile emerging economies and that we all have to brace for tough times,” and yet you are borrowing more and more. Tell me, how will the country meet its debt obligations in the short term?
Un believable that can’t be chikwanda writing such he had to hire an expert to come up with all that jargon of concocted lies which he doesn’t understand himself
Zambia should stop this business of recycling leaders. In developed nations once you serve as minister that’s it, you cannot be recalled however good you could have been. This man Chikwanda served KK in UNIP and got fired. Chiluba brought him back under MMD and quickly fired him. Sata in his wisdom if not nepotism brought him back under PF and Lungu continued with him. The damage he has done to the economy in five years is shocking. Because of his reckless borrowing and poverty creating policies a weak kwacha, cholera, Millie meal shortages, delayed government salaries to name a few are back and so is the hated IMF. What does it take for the PF and Lungu to realise that this fossil of an economist is a curse on Zambians? Instead of fixing the economy he has now joined the cheap PF cadre’s…
tribal/regional talk. Looking at his face I feel like vomiting. Zambia deserves better than this good for nothing man.
Well done Chikwanda…..a good topic for the cow dung party who do not understand how a country is run.We shall not allow them to do kanchema experiments on Zambia.
I would have kicked his balls if I were close.
I would have kicked his balls if I were close
Our govt is dealing with big economic problems at a fraught time when world economic problems are very complex.
Most Governments are big borrowers and when their expenditure exceeds their receipts from taxes they borrow more to make up the deficit. In reality, Governments don’t pay off the national debt it just gets bigger and it’s never paid off. In comparing the national debt to the national income as a ratio, we can look at the USA in the 1980s when it’s ratio rose from 33% to over 50% before it fell in the 1990s when it was in surplus and able to buy the debt back. In the UK, that ratio was100% approx in 1964, falling to 40% in later years.
Problems we are experiencing are, Inflation eroding the value of the debt and Debt servicing adding to the burden of repaying…
Problems we are experiencing are, Inflation eroding the value of the debt and Debt servicing adding to the burden of repaying. The question is whether the debt level is reasonable or safe. quoting from The Economist, 27 February – 4 March 1988 which summarised ‘neither economic theory no history gives any clue as to what is the critical level of public debt but the crucial factor is the willingness of investors to hold public debt. If they lose their appetite either interest rate must rise sharply or the government has to finance its deficit by printing more money which strokes up inflation like in the case of Zimbabwe which had no investors to support it and sanctions were imposed on it.
The issues we should all discuss with our govt is Austerity. Critics of austerity argue that ‘Harsh austerity in depressed economies isn’t necessary, and does major damage when it is imposed.’ For that reason as a Patriot I commend our govt for its reasonable borrowing within a good ratio to our debt and income. We are still in a reasonable level although it is frightening. Asking IMF to help/intervention is astute and is the mark of a genius President and Govt. Let’s give them a hand, WELL DONE!
WHY IMF SHOULD SUPPORT US
As for IMF, let’s look at their considerations in 2010 when the richer countries were dallying with Austerity. The following is sourced, from The Guardian Newspaper article by Paul Krugman, UK, who wrote a good report on the negative effects of Austerity called; The Austerity Delusion [Paul Krugman]
Article dated 29 April 2015
www(dot)theguardian(dot)com/business/ng-interactive/2015/apr/29/the-austerity-delusion
‘ Since the global turn to austerity in 2010, every country that introduced significant austerity has seen its economy suffer, with the depth of the suffering closely related to the harshness of the austerity. In late 2012, the IMF’s chief economist, Olivier Blanchard, went so far as to issue what amounted to a mea culpa: although his organisation…
In late 2012, the IMF’s chief economist, Olivier Blanchard, went so far as to issue what amounted to a mea culpa: although his organisation never bought into the notion that austerity would actually boost economic growth, [the IMF now believes that it massively sunderstated the damage that spending cuts inflict on a weak economy].’
That was true of Britain five years ago – and it’s still true today.’
LETS NOT BAD MOUTH OUR GOVT FOR INFRASTRUCTURE DEVELOPMENTS, but support it. Let’s not give HH and his foreign friends room to cause instability in our country.
President Lungu, clean them up Sir, the whole of UPND for treason with this Militia training issue. UPND us the one threat to all Zambians.
Retire the old goat plsssss he has out lived his usefulness. Lungu worries me if these are the characters he wants to return sorry you will achieved nothing. He has nothing to lose even if you fire him to date. Don’t you get it.
How can this F88l say great success just because there is always kaloba in offing?
Does he know what greatness is. How deep has put us in the debt hole. I feel angry that he can brag about his incompetence
Ok, time to step aside. If the government cannot collect taxes or outright sell copper and use those finances to diversify into infrastructure – roads, schools, hospitals – then they should step aside and let a part that can do so take the helm. What are “beneficial demographic trends”? One of the provinces is called the Copperbelt, and the minister dares to say “regrettably we don’t have no resources”?
PS, grammatical errors in this post are all mine.
WE DO APPRECIATE WHAT YOU ARE TRYING TO SAY MR CHIKWANDA. BUT WE STILL REMAIN HUNGRY AND POOR. PRICES OF COMMODITIES HAVE GONE UP AND WE ARE FAILING TO COPE. YES THERE IS AN ECONOMIC DOWN TURN GLOBALLY, BUT WHAT ARE THE OTHER COUNTRIES DOING FOR THEIR PEOPLE TO CUSHION ITS IMPACT? SOME OF US IN SALARY SCALE K AND ABOVE HAVE HAD 15% SALARY DEDUCTIONS SINCE JANUARY WITH NO EXPLAINATION. WE DONT FEEL SAFE IN YOUR HANDS. IF YOU CANNOT LISTEN TO US NOW HOW SURE ARE WE THAT YOU WILL LISTEN TO US IF YOU WIN NEXT ELECTIONS? SIR, THINGS ARE BAD. PLEASE RE-LOOK AT YOUR INFRASTRUCTURE DEVELOPMENT AND CONSIDER OUR PLIGHT. WE HAVE GONE THE WAY OF IMF AND SAP BEFORE AND WE HAVE VERY SAD MEMORIES OF THAT ROOT. DONT TAKE US THAT WAY PLEASE. MAY IT NEVER BE SAID THAT WE MADE A MISTAKE BY VOTING INTO…
When the National Assembly Speaker asked Mr Chikwanda to withdraw his tribal remarks Mr Chikwanda said that he was morally constrained to withdraw his remarks that were not in any way offensive.
Mr Chikwanda thinks Zambians are all that dull not to deduce a profound meaning of his tribal remark. His arrogance to demean the caution from the Speaker of the House whom he mockingly said held him in high esteem just goes to tell how this old man has become chaffed up. Mr Chikwanda should be reminded that he became minister of Zambia under late president Sata on tribal dealings of Sata and PF falling regime. At his age and tribal remarks are at odd with Zambians moral values. Mr Chikwanda should be ashamed of himself as a despicable raw model for Zambia and his grand children.
Regionalists will never rule Zambia: only Over our dead bodies.
How do they choose the leader of a so-called national party on the basis of tribe. That’s an oxymoron.
Chikwanda is simply hiding the truth behind the facade of his speech writer’s words. As @Thoughts has already ably explained, an economy evaluated at $25 billion when fundamentals such as inflation and exchange rate where at 7% and $6 respectively is not the same when those fundamentals double. Additionally, the amount of revenue being collected has reduced to a level where debt repayments are now affecting salary payments in the public sector. True to an individual who seemingly doesn’t understand all these issues and their interrelated nature, the unrepentant economic saboteur has now raised the debt ceiling to over 100% of GDP in real terms (remember that real GDP is currently just under $13 billion). This action alone has ensured that the future generations are now enslaved to debt…
…. This action alone has ensured that the future generations are now enslaved to debt that was once avoidable. The economy is currently growing at 3% instead of the projected 6-7%. It does not take a rocket scientist to figure out that we are increasingly locking ourselves in a tight corner. When Chikwanda says in his speech that “WE” all need to brace ourselves for tough times, the old mason simply means “YOU” should brace yourselves for tough times. He himself is secure with his looted millions safely stashed away in Swiss banks.