Plans are already underway to reduce borrowing-Felix Mutati

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Felix Mutati
Felix Mutati
Minister of Finance Felix Mutati says plans are underway to improve the Country’s economy by reducing the fiscal deficit, which will in turn result in reduced borrowing.

Mr. Mutati says the key objective of reducing fiscal deficit is to put in place measures to reduce subsidies and enhance economic activity.

He also says Government intends to work closely with the Central Bank to normalise fiscal conditions and develop a roadmap to gradually dismantle arrears owed to suppliers of goods and services.

Mr. Mutati said this when he officiated at the 2nd Annual Conference on Banking and Finance which is underway at Lusaka’s Hotel Intercontinental.

Meanwhile, Zambia Institute of Bankers and Financial Services President Cephas Chabu says Zambia’s aspiration to transform into a middle-income can be achieved if the country becomes more financially inclusive.

Mr. Chabu further said the Country needs to adopt best practices of financial inclusion implemented by other countries in order to foster economic development.

And Leonard Mwanza, who spoke on behalf of the Chairperson for Bankers Association of Zambia, appealed to Government to put in place policies that favour the expansion of banking services to the financially excluded.

Mr. Mwanza further urged Government to consider giving a waiver on taxes on Point of Sales machines, ATMs as well as other equipment which can be set up in far flung areas of the Country, in order to capture the large population of the unbanked.

The 2 days Annual Banking and Finance Conference is being held under the theme “Financial Inclusion – Exploring Regional Best Practices” and has been organised by the Zambia Institute of Banking and Financial Services.

58 COMMENTS

    • +5
      -2
      vote

      Time for application of the core principles and theory in managing our economy by addressing practical issues in a range of fields today. Practical measures cannot overlook economics of demographics, business, labor, industrial, agricultural, developmental, educational, healthcare, monetary, Public economics and our economic history of course. Other than making usual abstractions and estimates, common sense will be imperative if tied to discipline and some methodological distinctions. This we should help GRZ pick up as a new order of realizing equitable development.

    • +3
      -1
      vote

      Senior whatever, please find someone to write in Bisa/Bemba or nsenga if not nyanja (the language of the lake) your timely contribution. Otherwise it’s falling on on hard rocks

    • +6
      0
      vote

      Are these people mistaking price controls on energy as subsidies or what?

      PF removed subsidies during Sata’s era and there was a huge debate then, with Miles Sampa championing the cause.

      When did they reinstate the subsidies again? How come mealimeal and fuel prices remained high despite the subsidies?

      I do not know of anything being subsidised under PF apart from Education and medical treatment. If thats the case then PF is planning to introduce higher schools fees and higher hospital fees.

      This is proper dununa reverse in the making.

      Mwanya muzanya manzi no more cheap education and medical treatment.

    • +3
      -1
      vote

      How is this Mutati going to rein in fiscal indiscipline when his boss chagwa agreed to borrow on behalf of Mugabe?

      PF under Sata borrowed on behalf of mugabe from the African development bank and world bank for the kariba project.

      Mutati should be careful not to upset his boss who thrives in kaloba and thieving. Otherwise he will be fired to bring in Chikwanda the Kaloba and red wine man.

    • +4
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      vote

      There is Mutati are talking about saving money….meanwhile the whole cabinet has driven to KK International Airport to welcome the Lazy Bum Edgar..really laughable!!

    • +3
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      Ba Senior bena ni support fye. When Chikwanda borrowed recklessly we condemned while ba Senior supported. Today he is supporting what we argued against chikwanda. Cadre mentality

    • vote

      @Muntu Wanzelu you are spot on. The PF govt confuses me. Subsidies were removed in the first year of the PF govt. They told us the money they were going to save was going to go to infrastructure and social services. When did they reinstate those subsidies mwebantu?

    • +1
      -1
      vote

      @senior citizen. Likali upepa boyi. How do you look yourself in the mirror and remain calm after writing such nonsensical prose?

      Even mu ca kwenu, I don’t think you would make sense! Yarrrrrrrr

  1. +3
    -1
    vote

    There is great wisdom in locking the barn door after the prize bull has bolted Mr Mutati.

    I sincerely hope you don’t believe in your own bull sh!t. Strange things that power does to simple minds.

  2. +7
    -1
    vote

    Zambia became a lower middle income country in 2010. After 5 years of PF, Zambia is now aspiring to become middle income again. So it’s true that PF took Zambia backwards big time.

  3. +9
    -1
    vote

    Financial indiscipline is the hallmark of the Lungu and PF govt. How is Mutati going to reign in total expenditures when his Boss is chartering planes to the UN in New York,UsA exorbitantly? Corruption in the PF govt is rampant.

  4. +4
    -5
    vote

    With elections behind us, let’s put our brains at work in arresting the national economic malaise and turn it around for measurable equitable development. Sons and daughters of Zambia with a wealth of expert knowledge and skillsets, the ball is in our hands. With due respect of all professions, I pick up all fellow learned colleagues in Finance an Applied Economics to step forward in helping the country run with unlimited expert guidance. Politicians thrive on the back of expert opinion they receive. Zambia wins we all win.

    • +6
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      vote

      Senior Citizen…… do you really believe the Utter Nonsence that you write? I read what you type but it doesnt mean anything………………….

    • +4
      -1
      vote

      kagoneni imwe nayimwe. you are a hopeless bootlicker. please work on saving money so that you can visit your grandkids stuck in america as economic refugees

  5. +4
    -1
    vote

    Kikiki pf cannot govern without kaloba. Mutati stop living in utopia. You will borrow and borrow more because pf lacks knowledge in income generation while hh has a lot of experience of this. We have lunatics running government. Poor Zambians

  6. vote

    GDP Growth in A Sustainable Way Is also Healthy The minister should see where the new stimulus will come in this pronouncements whether fiscal or monitory in view of Chinas decades of double digit growth seemingly over and still try like China to grow the economy to 5 trillion Dollars in productivity

    Its achievable but It won’t be easy to reengineer the current capital flows in investments and shift the economy to one that is productivity driven looking at the country’s growth forecasts and debt imbedded into the 2030 plans

    Its achievable but lets see and align with Good National Plans as read from Yamba’s Treasury Department that The new Planning minister…

  7. vote

    should take time to study and buying He looks promising also Full of Energy Take time and also to see the My Friends Christine Largade of IMF intents and see the Good Hope and see how to nicely fit in the Cash flows to ensure safe passage it will nicely fit in

    Good Ministerial comments though and focus Keep it up

  8. +1
    0
    vote

    The fiscal deficit has very little to do with Central Bank, it’s a budgetary issue, rein on blotted expenditure and boost revenue collections at ZRA.

  9. vote

    You will need a measure of growth that is healthful to unwind your Financing and current Without Growth that translates into productivity is what Zambia needs Productivity growth higher that the credit growth seen in listen times It should not be short-term approach but a horizon across all periods and not business as usual

  10. +6
    0
    vote

    Ba Mutati, let us just continue stealing and eating. After all that is why we fought to win by hook or crook. We are not in power for nothing other than self-enrichment so let each ad every PF member enjoy the benefits of being in power. We did not fight and cheat to continue suffering. We are PF and in power!

    • vote

      @maryGoRound
      us with only rudimentary economics are quiet and listening to those who are experts at it debate. If you don’t undestand economics or commerce and trade just keep quiet and learn from others don’t go off the subject unnecessarily.

  11. vote

    Rather Growth is what Zambia needs to realise its potential and meet the current to make a return to create reserves that will propel it to Middle Income and Economy class for the future embedded in those FNDP plans

    Growth is important and if it can be achieved over and above the Current feasible Then You will have performed Honourable mutati

    Ministry of Planning finance and commerce should pull efforts and synergy

  12. +9
    0
    vote

    This man is likened to a priest in a brothel preaching about abstinence …in 12 months of Lazy Bum Lungu’s rule never did he implement any cost saving measures; even now he has charter an aircraft full of PF cadres… Mutati is an outsider; i highly doubt it if these empty tins will even respect him!!

  13. +1
    0
    vote

    For whatever his shortcomings, Mutati is a far better choice for the job than than was his predecessor, Alexander Chikwanda – a right step in the wrong direction!

    • vote

      Mutati was featured in a video when he was Commerce minister parading unsuspecting chiefs to petty investors in China. The aim was to offload traditional land into the hands of foreigners. This is the wolf left to guard the goats? Tighten your seat belts!

  14. +2
    0
    vote

    Mr Mutati the thorny issue you need to look at is allowing foreign banks to lend their foreign nationals in Zambia investment money at 2% when Zambians can only borrow at 30%. How can Zambians possibly compete in their won country. Having borrowed money at 30% I can only sell my chickens at K60 kwacha to make 20% profit. But there certain foreign nationals selling chickens at soweto at K40 and they are making 100% profit. So please think of a mechanism to protect local interprise.

    • vote

      That’s the responsibility of BoZ.
      Dan Kalyalya is on record saying he does not believe in tinkering with interest rates.

      Felix should focus on controlling spending. Put in place tight fiscal controls. If you don’t know how, contact me.

  15. +1
    0
    vote

    Any sane mind knows that the trio economic planning (Ministry for finance), Fiscal policy (ZRA) and Monetary Policy (BOZ) work in tandem , given the heavy borrowings entered into by the Executive under ABC its time to plug the walk and see how best to avoid enforced austerity measures that would accompany and IMF bail out. The best approach is to take certain precautions such that the medicine from IMF wont be too bitter. We might even thing renegotiate our borrowing terms so that if we are no longer a middle income country we can be temporarily down graded to allow us access concessional or more favorable terms. Also we need a new Treasury Secretary if we are to move forward

  16. +1
    0
    vote

    just work and we will see the results ourselves. you are talking too much, we are eagerly waiting for positive results

  17. +2
    0
    vote

    PF we voted you to power whilst you are busy trying to find money to pay suppliers could you please find money to pay us the pensioners sometimes we go for as long as four months before we get any money. Minister we worked for that money we didn’t steal like others so please, please pay us. It is a humanitarian right our monies were deducted for years so please give us back our money so we don’t beg.

  18. vote

    Who is this fool lying to? These thieves will now finish off Zambia, they will continue to borrow and pocket the money. Corrupt filthy fools.

  19. vote

    Change the working culture ? How can one explain . This one you go to so a place called Interpol than you are told that we are closed we operate on Tuesday’s and Friday’s . You go to Zra only to be told cumputors are down. And the police holding people at radomes there whant you to pay on the spot Whic is wrong

  20. +2
    0
    vote

    We are borrowing Money to build churches. We want a huge Synagogue for Lungu to leave a mark in Zambia and African politics.
    Chishimba kambwilil has started campaigning for 2021

  21. +1
    0
    vote

    Stupid mwaiche stop borrowing altogether .Do you reduce a disease or would you prefer to cut it off completely bwana Mutati?

  22. +1
    0
    vote

    This is laughable. Hahaha

    “Mr. Mutati says the key objective of reducing fiscal deficit is to put in place measures to reduce subsidies and enhance economic activity.”

    This guys is no economist. This is back to front. You reduce subsidies in order to reduce the deficit. Even effects are in reverse now!?

    Cut the fake Ministries, close some embassies, get rid of govt waste. I’m wasting my time with these chaps.

    Dununa Reverse!

    • vote

      It’s dununa reverse Zambia kunwa amenshi mu PF…..mumala mulelila mbulumbulu….kufwanensala bakaponya ba dununa reverse!

      Thanks

  23. +1
    0
    vote

    You have been in office for less than a week and plans are already under way. Were these plans left by Chikwanda or formulated by the PS. Your destabilising of the MMD has paid off, rewarded as a minister ka?

  24. vote

    Wenzelu, subsidies are still there all you need is take some time from your busy schedule to check. I am sure you’re abroad so you can visit the IMF or the WB. Otherwise why should these lending institutions put removal of subsidies as one of the conditions. I am supporting Felix, but just thought I should point out this.

  25. +1
    0
    vote

    What’s the point of being called a middle income country when your roads are full of potholes, when you as citizen can’t build a house? Those terminologies must be physical not theories which can only be understood by the elite few.

  26. vote

    To tightened the economic cycle is important but if You are not registering growth Meaningfully Then its a ZERO SUM GAME especially with producer inflation in agricultural and other inputs like fuel and transport that could have been previously seen subsidies now removed to meet the IMF package

    You will need to have several stress testing and simulations on various growth RATES Honorable to achieve over some comfortable period ”The IMF Period”

  27. vote

    Progressive Growth is important There has been some achievement in numbers recorded over the past 5 years, in Zambia progressive economic realignment and development hoping to recover and become robust . There has been some meaniful number of New Jobs added and created
    Poverty levels have fallen since 2001 and Growth is important to ensure economic progress in all Sectors Education should also be call and funding effectively will also create numbers that will propel Zambia further mover over the debt periods and make a return
    You will need to look at the tightening cycle and align properly avoiding curtailing some measure of growth adversely

  28. +2
    0
    vote

    Ati “well reduce subsidies and enhance economic activity”. Thats a lie bwana.

    1. Removing fertilizer subsidies will kill maize farming. Even USA subsidises farmers to a point of buying off wheat & dumping it into the Sea when world prices are low.
    2.Removing fuel levy will increase transport costs & will reduce demand for expensive goods
    3. Removing electricity will increase cost of production of locally produced goods

    Reducing the Govt fiscal deficit starts with cutting expenditure like LUNGU’s hiring a Private Jet for $400.000 when Jacob Zuma traveled to UN meeting via SAA

    • vote

      SAA is owned by RSA. KK used ZA but the downside is that the plane could not make money when it was being used by KK and at one time it was out of circulation for some time.

  29. vote

    You also will need to anticipate any sudden change in the plans by those trying to invest in Zambia and have a Plan B There could cases were Foreign Investors will be reverse and move to transfer their assets abroad to other attractive regions There is need therefore to work local investors to play a stabilizing role more to ensure such a crisis is contained and sustained

    to think that its only FDI is also a fallacy as reinvestments by local investors is also important working the financial sector also///

  30. vote

    MAKE HAY WHILE THE SUN SHINES. CHISHIMBA KAMBWILI VERY SOON WILL ANNOUNCE HIS PARTY AND HE HAS AROUND HIM IS MUMBI PHIRI AND A FEW PROMINENT GERABOS ON CB. THEY SAY BY 2017 MID YEAR MANY GUYS ARE COMMING OUT OF PF JOIN HIM AND WILL PARALYSE LUNGU BECAUSE LUNGU IS NO LONGER PF BUT MIXURE OF MMD

  31. vote

    If You look at the FDIs we have as Country Zambia and Characteristics of these FDIs in foreign firms what measure do we have as fore Instance
    FDIs by employment created long-term per sector per industry for those foreign firms
    FDIs per R&D generated in Zambia resulting in Products of value
    FDIs by exported Goods annually by foreign firms in Zambia
    FDIs by Value added Gross value per sector In Zambia

    Then look at the Flows In and Out per industry per foreign firms and see the net effect to the Financial sector and see whether we are there or we should be there Do we even have the statistics

  32. vote

    There is a lot of work that lays ahead and it can be done Only if You stick to Planning but not so rigid not to take the market when it calls

  33. vote

    It starts with you Mr Minister and your colleagues.Demonstrate your commitment to the cause by cutting down on your extravagant use of Tax payers`s moneys.Why unnecessary celebrations that are not production related ,for instance? You have adopted the term “the elite must eat”forgetting the majority beyond your walls are increasing and surrounding your fortress of comfort.Soon you will need to get out and look for resources and when they see you,they will like zombies feast on you.Learn to look beyond your walls.Action not empty rhetoric.Speak to ask only when you have acted.Young Zambia is tired of old songs.

  34. vote

    On a serious note let us just stop misapplying our resources and pocketing instruments meant to steer this country towards development. This story of subsidies is as tired as the fight against corruption. There are too many conflicting stories about it. At the end of the day you want to even scrap the little farmer assistance to peasant farmers while the elephant in the room in the name of public fund theft and donor fund misapplication goes on unabated. Let’s do something right for once in our fcuking lives! Please!

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