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Alba Iulia
Wednesday, July 28, 2021

Government will Remove Subsidies as part of Zambia’s Economic Recovery Program-Mutati

Headlines Government will Remove Subsidies as part of Zambia's Economic Recovery...

 Hon. Mulusa and Hon Mutati during the World Bank Africa Group One Constituency meeting in Washington DC
Hon. Mulusa and Hon Mutati during the World Bank Africa Group One Constituency meeting in Washington DC

Government says it will remove subsidies over period of time as part of the country’s economic recovery program.

Finance Minister Hon. Felix Mutati says the government will over the next five years work on an intensive economic recovery programme that will among other things implement the removal of subsides.

Mr Mutati was quick to point out that the process would be done gradually adding that government would put a social safety impact programme in place to cushion the impact on the poor.

The minister was speaking at the Zambian Embassy in Washington DC, where he briefed the diplomatic staff on the government’s economic plans over the next five years.

Earlier in the day, Mr. Mutati and Minister of National Planning and Development Hon. Lucky Mulusa held high level closed door consultations with the Bretton Wood institutions on issues of development for the country.

The two minsters are in the USA capital Washington DC to attend the annual meetings of the IMF and World Bank.

The Zambian Delegation delegation met with ?Executive Director at IMF Ms. Chileshe Kapwepwe and World Bank’s Vice President for Africa Makhtar Diop in separate closed door meetings.

Mr Mutati said the purpose of the meetings was to discuss how Zambia would partner with the institutions to help on its recovery programme.

He observed the ministers had candid discussions with the institutions at which the government was clear on the road map to the recovery.

The minister added that government was undertaking measures that will bring equity and sustainable growth for the country.

Mr Mutati noted that the country had a huge financing gap that was negatively impacting the country’s inflation rate worsened by low copper prices adding that the banking sector was currently holding up to 10 percent of bad debt.

The Minister said the government would announce the economic recovery program in the coming budget.

L-R) Dr Denny Kalyalya, Hon. Mutati, Hon. Mulusa, Ms. Chileshe Kapwepwe, Dr. Smiwinga, Dr. Ponga  after the meeting at the IMF in Washington DC.
L-R) Dr Denny Kalyalya, Hon. Mutati, Hon. Mulusa, Ms. Chileshe Kapwepwe, Dr. Smiwinga, Dr. Ponga after the meeting at the IMF in Washington DC.

And Minister of National Development Planning Hon. Lucky Mulusa says his ministry is harmonizing all government plans and take stock of what needs to be done to accelerate development.

Mr Mulusa says his Ministry was created to respond to the lack of achievement of set goals in the development of the country.
He noted that despite the country have been developing and implementing projects, there was need to harmonize the implementation.

Mr. Mulusa cited the road infrastructure program where he observed that even though the government was doing an exceptional job in road construction, most road were social roads not linked to key development areas and objectives such as agricultural production and tourim

The Minster noted that the Ministry of National Development Planning will ensure that economically beneficial plans will be implemented.

The ministers were welcomed by chargé d’affaires at the Zambian Embassy Joseph Chilaizya.

The Zambian delegation includes Ministry of Finance Permanent Secretary Dr Ronald Simwinga, Ministry of National Planning Permanent Secretary Dr Sr Auxilia Ponga, and Bank of Zambia Governor Dr Denny Kalyalya.


  1. No more ubwafwilisho from govt. Yazandamuka. All the promises you here from PF are non starter now because of no money in the govt pocket

    • “Mr Mutati was quick to point out that the process would be done gradually adding that government would put a social safety impact programme in place to cushion the impact on the poor.”

      So your father says , I am not going to pay your school fees this year, but I am going the make the process painless. What does that mean? And when you talk about the poor, who are you talking about ?, because 90% of the Zambian people in poor. Bwana minister calling a spade a spoon will not help you, just tell the truth. I thought this is a christian government which believes that the truth will set you free. You should be travelling with the minister of Religious fimo fimo.

    • Nubian Princess,
      What are these subsidises that we are enjoying in Zambia? Give an intelligent answer not politics.

    • The economy is already in a COMA. Now they want to take it for LUMBER PUNCTURE with Dr. Lambert. We all know the end result will be Mortuary. Removing subsidies so that the money saved is used to pay IMF Kaloba? Even USA subsidizes production, to a point where USA Govt buys wheat from farmers & dumps it into the ocean when world prices are low.

      We told u during campaigns, but u were brainwashed with styopet Duny0ny0 Reverse song. Very dull migrant rogue tribes from NE Rhodesia have infested NW Rhodesia & bred like Guinea Pigs in LAMBA-LAND, LENJE-LAND & SOLI-LAND.

      Go to this USA yahoo website: usDOTyahooDOTcom/ (Replace DOT with . )

      Theres a PHOTO of LUNGU for an article entitled “Here’s why good governance in Africa has stalled”

    • This is just the beginning of the worst to come, IMF doesn’t entertain mediocrity which is a priority for the incompetent and visionless PF of Edgar.
      Zesco is already tightly held on the throat, even other mines due to PF’s financial carelessness of the economy.
      Wait until the subsidies are finally scraped, all breaks loose as all commodities of fuel, water, rentals, transport and especially FOOD prices etc shall compulsory incredibly increase in the prices. An egg will start costing dununa reversed Zambians K3.9n-K3,9999, hope people will now learn the hard way amid the prevalence of load shedding and economic crisis. PF’s debt is over $10 billion. $2b is for RBs MMD, $3b is Sata and $5b is blind Edgar’s PF. PF alone is $8b, in 18 months, the $5b is accountable to Edgars…

    • A failed government bent on punishing its own citizens!

      How many times are same subsidies going to be removed?

      Sata already removed subsidies on fertilizer (K100 to K250) & fuel ( K8/l to K11/L)?

      When were they reintroduced?

      Mutati be specific which subsidies u intend to remove. Is it on health(ARVs), Education(Pupils pay schools fees at secondary level) or is it Energy(Zesco)?

      Next u will remove civil servants salaries but expect them to work saying Military, Police, GRZ schools & Hospitals shud pay themselves salaries!

      PF has run out of ideas. Euro-bond can’t lend them anymore!

  2. Ati Sonta when caders were told the got annoyed now post election it’s coming from PF itself….Mr. Mulusa cited the road infrastructure program where he observed that even though the gvt was doing an exceptional job in road construction, most road were social roads not linked to key development areas and objectives such as agricultural production and tourism.

    • After squandering $9.2billion, PF now admit that all those roads just go to their homes. They are of no national consequence, do not create any economic activity and is just dead money that benefited a few. No wonder PF had to rig the elections because they are so selfish and nobody wants them. Now, Zambians have to pay harshly for PF’s plunder.

    • Now that is what I call THINKING as compared to SINKING. Borrow with a plan. The purpose of borrowing should be to induce development and not to please the cadres.What significance has it to tar a road going to a chiefdom as compared to improving road network in a national park?The former is called social development which does not bring a return on your investment while the latter is called economic development because tourists will come and pay foreign exchange which can be used to repay the loan and invest in other needs.Common sense is after all not common at all.

    • @buck teeth …

    • This blood painful. These people borrowed excessively to build social roads for winning an election knowing very well that Zambians are dull. Zambian!! Just sing Dunyonyo and they vote for u. Now, its for you dull Zambians to payvgor dunyonyo reverse. I can’t wait for those subsidies. The cushions Mutati is telling are fake. The gradual removal of subsidies is fake…. The IMF programme will be effected at once.

  3. mr mutati the poor will be hit and hit hard. The so called social impact safety program is a smoke screen and semantics. The fact is we are in trouble and the biggest casualty are the poor.

    • If the poor in Lusaka and Copperbelt really believed that Lungu could prosper them, then they should think again. They should talk to Venezuelans who are starving despite a govt spinning socialist propaganda. In Venezuela, there are shortages of food, medicines, jobs and everything else. The poor are the worst affected. In Zambia, Mutati will never find the money for a social safety net. But there will always be money for Lungu to hire private jets and take PF cadres abroad.

    • The IMF should not release any money to PF until governance in Zambia improves. Also the IMF should make sure that PF does not use the money to buy machine guns and armoured vehicles for brutalising Zambians. HH should be released, and all closed media should be reopened before the IMF can give Zambia the loan.

  4. Happy New year PF. No new car for ministers either, let them take the bus or use government buses. 20 ministers going for same event using 20 vehicles?? They can use one bus. Lungu is going aboard 60 PF ministers at the airport to say bye! What for? If the country us going to save money it’s should start with ministers not just poor zambians

    • Let the poor in shanties tighten their belts more for supporting PF. There are consequences for stoopidity in life.

  5. ‘…………………such as agricultural production and tourism’ and of course MINING. PF is doing badly in North Western Province not because of tribalism as some misguided PF twerps keep harping but because of total neglect starting with Sata’s hatred for the people of this province which unfortunately seems to have carried on under Lungu. You can’t have the Solwezi Chingola road in its current deplorable state when you’ve tarred roads leading to toilets in Kabwata! Mwanawasa took NW from UPND to MMD in only one term 2006-2011 because he began to focus on NW province’s economic potential. There was no tribalism involved, pure and simple

  6. ‘…………………such as agricultural production and tourism’ and of course MINING. PF is doing badly in North Western Province not because of tribalism as some misguided people keep harping but because of total neglect starting with Sata’s hatred for the people of this province which unfortunately seems to have carried on under Lungu. You can’t have the Solwezi Chingola road in its current deplorable state when you’ve tarred roads leading to toilets in Kabwata! Mwanawasa took NW from UPND to MMD in only one term 2006-2011 because he began to focus on NW province’s economic potential. There was no tribalism involved, pure and simple

  7. I am at loss to understand why after five years of “unprecedented development” we are now facing “economic recovery program” for the next five years?
    Was it because of incompetence, fiscal ignorance, institutionalized corruption or just plain theft?

    • All the above. PF blew the most money in the shortest time over the most useless projects in the history of Zambia. $9.2billion in 5 years and the Kitwe-Chingola dual carriageway is unfinished? The Chingola-Solwezi road is untouched? Kafue Lower power station is dead?

    • Right…recovery from what? Is this economy sick. Another observation, PF itself has failed, they have invited MMD to try and fix the mess. (Mutati & Mulusa).

    • good point IMF for sure how can massive development be followed with a cruel austerity measure? its like saying i have a massive harvest but then you let your family have only one meal in a day.

  8. ‘Awaiting moderation’ for a straight forward treatise with no insults? Come on Lusaka Times, don’t join the self censorship band wagon.

  9. Either the media in its usual sensational fashion has been colluding to lie about removal of subsidies or there is a new wave of tax hikes and bare-knuckle economics coming our way. It appears every term of government brings about removal of subsidies chants and incentives for the poor and by mid-term the pigs are too busy at the trough to raise their heads to the very people they are supposed to be helping. We shall see…

  10. We warned you this would happen. The government does not have money. It needs money from the IMF. The IMF will not give money unless the government cuts fuel and electricity subsidies, Farmers’ fertilizer programme etc. The goverments reckless borrowing will bite the poor mans pocket !

    • Apart from all these economic measures, the IMF should squeeze PF to have fair governance. There’s no need to harass and imprison HH and to close opposition media. No IMF loans should be given unless these things are corrected by Lungu.

  11. Us who went through KK’s rule know how to survive,I don’t know how the post 90’s people going to fair? Don’t even think of protests, Kanganja is waiting to test the efficacy of his recent acquired toys!!

  12. PF cadres have taken this country backwards. Even supporting wrong things out of jealousy for HH. PF cadres act like babies….. falling for sweets. Smh

    • @buck teeth ..
      hh deserves to be locked up for his craven behaviour and regionalism like you,

  13. Hold tight guys . Don’t say we didn’t warn you. This Christmas most if you will go without food because of your silly decision to allow pf to get away with vote stealing.

  14. Please IMF don’t give pf kaponya government any money they will just steal the money just like they stole our votes!!!

  15. Can ECL announce the Ambassador to DC and stop using these journalists who are actually womanizers by way of one MS. Mwanza and stop the charade also how can you have Worldbank IMF meetings and the Secretary to the Treasury is missing? Or has ECL appointed someone sober this time around?

  16. ‘……………..such as agricultural production and tourism’ said Hon. Mulusa. Did he forget to add ‘MINING ESPECIALLY IN NORTH WESTERN PROVINCE’? While roads leading to absolutely nowhere have been tarred in Kabwata constituency, a vital economic road, the Chingola – Solwezi road which brings almost all the wealth Zambia is generating is in such a deplorable condition, one weeps to be on it. We know that Sata’s pathological hatred for the province is responsible for this state of affairs but why should this continue under Lungu? The voting pattern in NWP is not informed by tribe as some misguided elements would like to portray but is purely on the basis of lack of lack of prioritization in allocating national resources. It took Levy only one term, 2001 to 2006 to move the whole…

  17. What gradually when they have been shelving it due cowardice…time to dance to IMF’s tune, SAP is coming …Mutati has nothing to lose he is MMD President.

  18. Do we still have anything being subside in Zambia since everything is very expensive compared to our neighbours? Hon Mutati should be bold enough to say we are going the prices of things. Diplomatic language is only good when you are dealing with people who are not privy to some info.

  19. Pundits were quick to point out that developed countries are even more borrowed than we are.

    In fact at 60% of GDP, we are far less borrowed than even the USA !!

    BUT the truth is that USA pays 1,7% interest on its government bond whilst Zambian govt pays around 24% on its domestic bond.

    Secondly, the USA borrows in US$. So as long as there is ink and paper in the world, they will never default on US$ obligations. Even Bob did not default on his Zim dollar obligations. He just printed it and paid you back.

    However when Zambia borrows in USD or CNY or Euro, currency we cant print but in fact currency we have to earn, then we have a big problem

    • I get angry when western countries tell us not to borrow especially for development purposes when their own economies have debt to GDP percentage such as 200% for Japan and over 100% for the USA. Right now the issue between Clinton and Donald in the American presidential race is who will add more trillion dollars to the national debt. Right now it is alleged that Zambian debt is about 10 billion dollars but look at what it has done although a good portion of it has gone into people’s pockets. My main complaint is that China has benefitted more than Zambia because Zambian contractors are unreliable. Imagine the impact on the economy this would have made if most of the money had remained in Zambia. Contrast this with the 7 billion dollars borrowed under KK which was mainly for consumption.

    • With KK’s debt there was no sontapo because all the debt was flushed down the toilet because it was used on mealie meal coupons.

  20. Mutati the fertiliser subsidy is the cushion for the poor who cant afford or come up with cash to buy fertiliser.

    You are saying you will cushion the pain when you remove the subsidy cushion ? What hogwash !! You will take with one hand and give back with the other hand, in the process reduce the fiscal gap ???

    Why dont you cut down the largest cabinet in Africa. Let ministers take a pay cut. Stop overseas travel. What the pigs give up at the feed trough can then be shoveled down to the poor.

    But the austerity you are talking about is simply to chop the subsidies to the poor, whilst the gravy train for politicians stays intact.

    Also you can bark as much as you like about the 5 year period, but has IMF agreed to this timetable ?

    Its one thing working under MMD…

    Zambian opposition should respect Edgar Lungu and give him necessary support for him run this country properly, Rainbow Party president Winter KABIMBA has advised Opposition political parties in Zambia, especially the losing duo HH and GBM, let them not be provocative, let them respect the Rule of the Law. what happened on the copperbelt is uncalled for, it is too misplacement of Politics and our Democracy, above all lack of respected for our head of state.”

    • Respect is earned period!! I have never heard of a chakolwa who is against media freedom, freedom of assembly and expression. Who is just respected….additionally one that really hasn’t done anything let’s be honest …next 5 years is really the only time Chakolwa has to earn respect and he has to work for it

    • Respect is earned. Lungu stabbed the international observers he has no respect for no one. Charity begins at home. Lungu is leader of a chosen few ‘- so he gets his place in that circle of trust.
      If you run with the digs you learn to bark, but if you mingle with the eagles you learn to fly!

  22. Although it is said that history repeats itself and that we learn from history the only thing we learn from history is that we never learn from history. In 1986 KK was forced to implement an IMF-inspired 120 percent increase in the price of Zambia’s staple food, maize at the stroke of a pen. Food riots ensued in Kitwe. Bakeries were raided and the bread distributed to workers at the civic centre. 7 Peugeot vehicles were driven off form the Central African Motor Services. We should resist the removal of Farmers input Support Programme. Let us learn from history for a change.

  23. Bululu. This is the new technique of debating. Did you not notice how Pence was avoiding to discuss Donald Trump and instead discussed something else?

  24. Well done PF………………….. you were singing DUNUNA REVERSE::::: Celebrate over IMF conditions sing more DUNUNA REVERSE::::: Ministers will be eating every day in there homes when ka Cadre mu Kapoto, Kalingalinga etc are dying with hunger:

  25. What were you expecting when on the other hand you are asking for IMF money?
    I am sure that is IMF condition in order for gvt to reduce costs, but as usual, instead of our government to start at looking inwards, e.g by cutting down number of ministries (40???), they will instead cut on subsidies and make the ordinary Zambian pay for it.
    Zambians, TIGHTEN UP YOUR BELTS, there is more to come with IMF

    I don t believe in the so called “social safety impact programme”, as this will in reality benefit a small % Zambians, leaving out those who actually need the support especially in rural areas.

  26. This has nothing to do with Lungu but everything to do with the late Sata,Chikwanda,Guy Scot and the lot that has run away from PF now. Yes Mulusa is right there are some social roads especially those in the townships and at district HQs. I hope he is not talking about any road in the rural areas as developing those areas really depends on proper roads,telecommunication and energy infrastructure without which we shall forever be singing copper mining! He should also know how politics in Zambia and many third world countries work.Now that roads have been built in some areas,they need to come up with programs that can spur production in those areas to grow the economy and create value for money on those roads- not just condemning them!

  27. a bailout is bail out. Greece had a bailout organized by the IMF/WORLD BANK, but their economy has collapsed. Portugal has had a bailout, but thir economy is still struggling. Spain has had a bailout, South Africa has had a bailout. these are difficult times for the world economy. The USA borrowed from China and yet its the largest economy in the world. its amazing that small brains in Zambia believe that free manna falls from heaven and that on a mono economy like Zambia’s the lord will protect its citizens from the harsh effects caused by falling copper prices. yesterday I was reading about a slump the price of gold, next it will be diamonds. for platinum, ask the south Africans, lonmin is selling off its platinum mines. instead of posting comments here google financial matters and…

    • True ‘ ?but one thing is truth about Greece, Spain, Portugal these countries are in the eurozone. They are backed by the euro and one strong economy -Germany will always back a failing economy within the zone to curb the spread but Zambia has nothing

  28. ….. google financial matters and commodity priicing and get educated, you will be more wiser than the ignorance you are displaying on this site!!!!

  29. I don’t think Hon. Mulusa thought very hard about his Social Roads comment! All infrastructure was geared towards improving conditions for economic growth. Agree with the staged limitations to subsidies in the five year period and the social safety impact programme being put in place to cushion the impact on the poor.

    However, have major concerns on the ‘partners’ to development in Zambia. What is in it for them? We don’t want PF to sell the country and end up with Loans from unscrupulous partners that refuse to pay tax and want to do business with conditions paid for by the poor of Zambia,…like the mining companies that have subsidised electricity or rather free electricity. Why must you partner to resolve Zambian economy?

  30. Ebudunushi bulya bwine imbwa shaleshana, ifi bena Zambia nafikabolala fya mavotes efikalalila owe nomba line.

  31. wait a minute. if the economy is in coma, would UPND loosen the strings and make it worse. what would thy have done to get back to truck? I have never seen a teacher that marks x and fail to tell his pupils the correct answers. All we hear is ” prepare for hard times “, but then tell us the correct way for the sake of those that voted for you else remain silent forever.

    • A teacher is there to teach, not to give an answer.if a pupil gets an x on their test and asks the teacher why they got that Mark and teacher shouts out the answer that pupil wi? never learn, but if the teacher explained the method and wrote it down and the pupil listened, followed the instructions as given, then they should arrive to the solution without difficulties..
      Why should UPND tell OF the correct way of dealing with the economy? Why?
      You cannot climb to a job you are not qualified to do and expect others to solve your problems. That is wrong. Labour in UK does not tell the Trory government how to solve problems, they belueve in different ideologies and so do PF, FDD and UPND.

      MAD government SOLD those companies we all know the sad stories, so…

  32. @Honest. The alternative was well articulated in the 10 point plan on the campaign road and in the presidential debate, which ECL was too scared to attend. Were you busy listening to “Dununa Reverse”?

    Now we are in reverse. Its all good for me here in a country with laws and democratic rights. Enjoy your police brutality and cadrism.

    Dununa Reverse!

  33. @32 one zed, the 10 point plan included stealing the proceeds from the sale of RAMCOZ and leave the
    Zambian interest ie ZANACO still owed $80,000,000, CEC $30,000,000, luanshya miners unpaid, go to kitwe high court you will find recods of this case. the 10 point plan also included liquidating lima bank and hotel intercontinental workers in limbo, but hh and grant thornton being paid handsomely, not to mention expropriation of their properties, the litany of misdeeds of this thief is just too long!!!!

    • If you are so sure and believe your evidence and your PF party is in power, why don`t you sue HH in your democratic courts, instead of wasting LT space here.

      That will bring more value to the Zambian people and LT readers, instead of just yapping here. I hope come 2021, you will not be singing the same song.

  34. with such a sordid past, its not surprising that this man has failed in his bid six times. he will keep on failing until you dimwits replace him with a credible leader we can all feel comfortable with. not crooks and robbers!!

    • Zambia: PF Lawyer Banned Over Client Funds

      Southern AfricaZambia

      PATRIOIC Front chairperson for the committee on legal affairs Edgar Lungu has been suspended from practising as a lawyer with immediate effect on allegations of misappropriating money meant for retirees of Lafarge which was formerly known as Chilanga cement plc.

      This is according to a letter dated July 30, 2010 and signed by Law Association of Zambia(LAZ) honorary secretary Musa Mwenye and copied to all relevant institutions and individuals that deal with lawyers.

    • MAD government SOLD those companies we all know the sad stories, so leave HH alone. Zambia Airways went under and people like Penza died in these dealings and no one talks about the National Airline

  35. Mulusa your are really a loser, every road is important. You cannot cry over spilled milk forge ahead and come up with a viable economic recovery plan. Think forward not back wards.

  36. IMF is here to remove food subsidies, fuel subsidies and to privatize Zesco. Other companies to be sold are Farmers co-op and Zamtel.
    Food products will rise and so will electricity and petrol. This means less money in your pockets. Education and healthcare will see increases in fees at point of service and admission. This us to create money for the struggling institutions. Government civil servants will have cut in salaries

  37. Zambians were told and decided to behave like rats. Let the game start…Mutati failed MMD pyseudo president now Minister of Finance let us wait and see.

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