Speaking in Lusaka after signing a Financing Agreement with the African Development Bank (ADB) to be disbursed by DBZ, Mr. Mutati said government will not manage any funds because people think the cash is their entitlement. He has called on the private sector to access the money and use it to grow the economy.
The Minister said government is now working on tightening levels of dispatch because some clients do not use the funds on approved projects. He has also revealed that government has in the last four weeks secured $ 237 million investments from the ADB.
Mr. Mutati said that the money includes the $ 50 million funds for aqua culture to develop the sector and reduce on importation of fish especially that Zambia is home to 40 percent of the waters in Southern Africa.
The Minister also signed a $ 1.7 million Education for Sustainable Development in Mineral Resource Management for Capacity Building in Mineral Resource at the University of Zambia.
And ADB Country Representative Damoni Kitabire said the DBZ financing facility will have a 10 year lifeline. Mr. Kitabire said his institution is aware of challenges faced by SMEs in accessing finance, even though they contribute 90 percent of jobs for the working population.
Meanwhile, Minister of Finance Felix Mutati has said that the economy has started showing signs of recovery following various interventions government has put in place. Mr Mutati noted that the local currency has stabilised while the inflation rate is on a downward trend.
Mr Mutati further said that the enhanced flow of Foreign Direct Investments-FDI- was another key indicator that the recovery plan is bearing fruit. The Minister was addressing a Private Sector and GRZ Consultative Seminar on the Economic Stabilisation and Growth Program in Lusaka.
Mr. Mutati disclosed that government is taking a situational analysis on parastatals that are draining the treasury.
And Mr. Mutati said has said that government will continue dealing with debts and increase revenue with or without the IMF coming on board. The Minister has however advised Zambians not to be scared of the IMF because key reforms such as the removal of subsidies and introduction of cost reflective tariffs for fuel have been made.
Meanwhile, Zambia Revenue Authority -ZRA- Commissioner General Kingsley Chanda said the authority has extended the deadline for complying with the new law for all account holders to have TPINs from 31st March to December 31st.
Mr Chanda said the decision was arrived at by a technical committee formed with the Bank of Zambia which decided to give banks ample time to change machines and upgrade their date.
That’s what happens when you lack Good Governance …you instruct DBZ directors to hand out loans to your cadres
This man Felix Mutati should have been in Commerce and Lazy should have headhunted a candidate for Finance…the worrying part is that he is the one who is shining among the empty tins!!
@Jay Jay you got right. 2 years ago on my home visit, I went to a bank manager with well documented project plan, already prep approved by Ministry of Agriculture. What she said was ;
“This is best business plan of the year, … Hooo are you in states, did you copy there.?” I said yes. “But Boss where is your constituency letter, from your branch AND your MP letter”. I told her, look lady, this is my family land and business. Ask me letter from my headman at most.
Felix is all talk BUT no tangible success.
It is like the dogs that continue barking, eventually you do expect them to and know they won bite at all.
What has he achieved so far in Office and or what is he planning to.
Where are the Monthly reports we were told by Lungu from Ministers
Thanks,
BB2014,16
So a lot of people haven’t paid and only M’membe is being harassed! What a shame!
Sit down, do a due diligence, do a SWOT, do a number of analytics on your economy and that will help you identify the causes. Come on, stop yapping yapping now anyhow and get to work for once. I am your supporter but I want more action than noise please
“…..Zambia is home to 40 percent of the waters in Southern Africa.”
Now somebody at state house took a bunch of vision-less merrymakers to Israel to beg for water!
Mutati the problem is not growth but expenditure. As you rightly noted, people are not spending money on approved projects. What about government? How many unbudgeted and unplanned expenditures have they incurred or paid? I like that you are focused and trying but start with Lungu first and PF thugs. Close the looting loophole while focsuing on steady growth.
The Auditor General’s report speaks for itself and the recklessness and waste is growing every year!!
The genius store cadell, they’re running out of you.
@wantashi, isreal is a shining example of a country that knows how to manage water, or simply agriculture.
they are able to feed 8m people from local supply in a desert and export fruits, using little water from the sea of galilee.
let us learn from them. let us embrace their woring culture and apply their skills, like drip irrigation
They want to criticize everything. Someone even said Mwanawasa had the best ministers which included the likes of Mpombo, Mulongoti, Tetamashimba (mhsrip) just to mention a few.
Is this the same story about 0% interest rates repeated here but with that dumb statement removed? Someone talked about the Zambian banks interest rates being one of the highest in the world, your answer is right here in this article, i.e. ‘risk’ is the biggest contributor.
As for Mutati’s other comment about defaulting and spending of the loans on different projects from that what they were approved on, blame that on the lenders for not following up. They should have following-on and an audit mechanism to ensure they release funds to the rightful projects; and those projects should form part of the collateral; also only release funds in batches as the project matures. Also insist on at least 10% deposit from the borrower and ensure you charge insurance and risk to the borrower…
….As for the signs of the economy improvement, Zambia massively lacks in a way to capture and report data. How do you report on those doing personal and vending businesses? What about the folks in the villages? Etc.
Finally the biggest problem with Zambia is those thieving politicians… As long as they don’t change their thieving behaviour, nothing will change in the development of Zambia.
Maverick I agree biggest problem is the thieving politicians and other public workers; civil service, parastatals etc until that changes nothing else will
And who’s gonna change that when everyone is ready to pay a bribe for a contract? Let’s not hide our heads in the sand corruption is deeply embedded in every section of ZAMBIAN life. It will take the introduction of summary execution of people found wanting and without formal trial. The scourge hasn’t spared anyone be it ruling or opposition politicians or non politician. Examine yourself and check how clean you’re.
Senseless Mutati you want banks to lend to GRZ at zero rates then you’re concerned when there’s high default rates for banks?
Huge huge huge disconnect there Mutati i don’t think you fit being finance minister.
Thanks for being on point and on taterg!
Zambians even at private level are very poor at paying debts.
Poor Mr Minister of finance you buy doing that you cab change things when Lungu is busy misusing taxpayers money honest of has failed to manage water really you even go to country that has part of it a desert to learn how to manage water kikikikikiji what a govrnment.