Zambia needs half a billion dollars of external borrowing this year-Mutati

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2,949 views

Minister of Finance Felix Mutati
Minister of Finance Felix Mutati
MINISTER of Finance Felix Mutati has disclosed that Zambia is ready to access the US$1.3 billion from the International Monetary Fund (IMF).

He said Zambia needs half a billion dollars of external borrowing this year to meet the budget requirement.

Mr Mutati said the funds must be injected into the budget so that the economy runs smoothly.

In an interview, Mr Mutati said the economic recovery programme which Zambia has come up with is purely home-grown and IMF will not dictate anything.

He said the IMF is in the country to consult with Government on the stabilisation and growth plan for Zambia.

Mr Mutati said Government has since constructed a three-year economic plan programme aimed at stabilising and growing the economy.

He explained that the role of IMF in the economic recovery programme will be to monitor the implementation of the plan.

He said the IMF will also help open up other financing options such as the World Bank, African Development Bank (ADB) and European Union (EU) which are expected to give Zambia grants and highly concessional loans.

Mr Mutati said as part of the economic plan, Government will not tolerate subsidies as can be seen from the recent removal of fuel subsidy.

And Mr Mutati has implored financial institutions in the country to ease requirements for collateral to enhance financial inclusion, reports MIKE MUGALA in Lusaka.
Speaking at the Zambia Institute of Banking and Financial Services (ZIBFS) annual ball on Friday, Mr Mutati said: “I would like all banks across the country to design innovative products for a common man on the street. People in rural areas must also be captured.

“Banks must also enhance capacity in their collateral management. I am asking banks to reduce on the collateral requirements to allow people to have easy access to financial services,” he said.

Mr Mutati urged financial institutions to put in measures that will allow people in the country to borrow at affordable rates.

And ZIBFS president Cephas Chabu has urged financial institutions in the country to be innovative and design suitable and affordable products which will bring about economic empowerment for Zambians.

Mr Chabu said there is need for institutions in the country to work together to transform the banking and financial sector.

Mr Chabu said ZIBFS is well-positioned to provide training which will introduce more innovation in banks.

He said product innovation can only be driven by qualified, trained and skilled manpower.

52 COMMENTS

    • +21
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      For that guy from Chawama, and the people who have hijacked him. Zambia must be the 9th Great Wonder on earth surely. The poor shall never benefit from this money with poverty levels that became an emergence as soon as Sata passed on (MHSRIP); and that guy from Chawama was forced to stand and hijacked by greedy PF members. Unfortunately, the same people suffering from poverty are so poor that they dont even know what is right or wrong with governance in in Zambia anymore. Kopalende was courageous though probably just wasting his time. Unfortunately, he said exactly what the rest of PF supporters don’t want anyone to say, as most of them benefit from this sort of borrowing through tenderpreneurship contracts they give each other.

    • +18
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      And when do we pay back. It would be interesting for government to reveal how much money the spend on ministers and the president. Those are areas which requires cost cutting.

    • +16
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      It’s like food. Why artificial formal of funding.

      How about organic – internal. You can make enough money if you look and support your raw materials.

      Brow are we going to repay that money Felix ?

      Thanks

      BB2014,16

    • +12
      -2
      vote

      Not good at all. Worse thing is that words like “borrowing, external loans and IMF” are being used in the same breath with “innovative products” and “home-grown ideas”. The Finance minister sounds confused.

    • +10
      -1
      vote

      Why we never hear this from the LAZY one in State House and the other empty tin ministers, it seems its only the MMD Finance minister who is talking austerity…whilst the rest of the tins are increasing expenditure by increasing Councillors allowances, creating Districts and Cities statuses, you have a lazy president who is travelling with the whole cabinet to Israel for 5 days doing absolutely nothing.
      It seems its only the Ministry of Finance that needs to balance the budget, the rest are doing well being reckless.

    • +7
      -1
      vote

      Even in his hollow speech on Friday in National Assembly.. the Lazy Bum did not for once mention anything about this need for this borrowing…he would rather talk about borrowing money to give youths to buy buses!!

    • +8
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      vote

      Nonsense. Politicians are only interested in enriching themselves. Why not tell your boss and fellow ministers to minimize on wastage through unnecessary trips? Why are you President of MMD and PF Finance Minister at the same time. Just enriching your pockets. We know it.

    • 0
      -19
      vote

      Those who voted for PF are happy with the government.

      But the opposition UPND are extremely bitter, and am not sure if they are sleeping well.

      Their greatest illusion has become their expired petition.

      I potty them, because they think that by singing about the expired petition, PF will be sad. Alas it is the UPND who are agonising and anguishing day and night.

      In any case they have indeed become irrelevant because even when the boycott parliament which they acknowledge exists (made of two parts – national Assembly and the president), they make no difference because business continues uninterrupted.

      They neither add value nor subtract, making themselves more unpopular.

      Come 2021 UPND’s loss will be far more than what they saw in 2016.

      They will have to tell Maureen…

    • 0
      -8
      vote

      They will have to tell Maureen Mwanawasa to discover (in a bigger bin) hundred times the 14,000 votes she allegedly found in a bin in Kanyama.

      HH will need to convince Maureen Mwanawasa, this time, compromise her values (which I know are different from HH’s), and join his falsehood. But still they will fail to present their case due to lack of evidence.

      They will enter another period of crying for yet another five agonising and years of falsehood deceiving their cadres.

    • +1
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      vote

      Glad my children will never contribute a dime to the repayment of this money going in the pockets of these lazy /corrupt Zambian politicians.

    • +4
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      vote

      PF is a failed experiment taking us to UNIP-era debt trap.

      It’s so painful that there have so many PF00ls singing praise songs, dancing to boostele songs, others are sining hymn songs whilst they destroy our country.

      – Their grandfathers supported UNIP for 27-YEARS till high mealie-meal prices hit their stomachs.

      – Their fathers supported MMD for 20-YEARS till they opened their eyes to what we had been telling them:- the looting by FTJ & RB.

      – Now they support PF experiment, even ignore the looting, cadre violence, election rigging, economic mismanagement, police brutality, tribalism, incarceration of political prisoners, clampdown on independent media etc. We don’t know what will make them open their eyes.

    • +7
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      vote

      It is US$500,000,000 to loot or steal not plug holes!!
      Mutati is speaking the language only monkeys understand – so don’t listen to their words but hear the thieving message cos all that money will be stolen!

  1. +17
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    vote

    ZIPAYENI MWEKA – ZAMBIANS YOU VOTED!!
    What you should be asking is What happened to the surplus cash reserves P.F inherited from M.M.D Government?
    What happened to the Euro bond Billions? Were you stimulated, & has Poverty Ignorance, & disease lessened after the surplus, & Euro bond have vanished un-accounted for??
    Then You need to ask yourselves, will this Money Mutati is talking about go into his & other Governmental officials /Cadres pockets?
    There were Millions of U$Dollars of public money used in the P.F campaigns, but no money for Poverty reduction.
    ZAMBIANS YOU HAVE WELL & TRULY BEEN TAKEN FOR A RIDE BY YOUR BELOVED P.F.
    You will know what I’m talking about in 5 years time from today. You will have More Economic refugees than Zimbabwe.

    • +5
      -1
      vote

      I warned people about this reckless by these tins right here on LT …All the reserves have been misused to artificially prop up the Kwacha before the the election, all the money has been used for consumption instead of removing subsidies …now we are all paying the price for this recklessness by Sata, Lazy and Fossil Chikwanda.

  2. +5
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    vote

    In order to become the master, the politician poses as the servant. ~Charles de Gaulle

  3. +6
    -1
    vote

    How does IMF negotiate a Financing Package will an illegitimate Lungu Regime? Until the Petition is heard,determined and a Court declares a Winner of the 2016 Presidential Election ,Zambia has no Legitimate President. The Spokesman of the Commonwealth has just issued a Statement saying Until the Petition is Heard and disposed off, the 2016 Zambian Elections remain disputed. Lungu is occupying State House illegally for now. What illegitimate Lungu needs to do is to allow the Petition to be heard and disposed off. After the Petition Processes are completed and if Lungu is declared by the Court the Winner of the Election most Zambians would have no difficulties recognising Lungu as their Legitimate President.There is No way Forward without resolving the Petition issue.

    • +2
      -3
      vote

      Grow up or wallow in your own leaders immaturity …the international community recognised the Lazy thing in State House the minute he was sworn in!!

  4. +3
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    vote

    If Lungu is serious about curbing corruption, he easily get that money back internally with seeking assistance from IMF. Reckless spending, the money we don’t have and the rubbish deals involving Ministers, the bloody list is endless. Lungu et. al’s incompetence is incomprehensible!!

  5. +1
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    vote

    If Lungu is serious about curbing corruption, he can easily get that money back internally without seeking assistance from IMF. Reckless spending, the money we don’t have and the rubbish deals involving Ministers, the bloody list is endless. Lungu et. al’s incompetence is incomprehensible!! Ati I will deal with corrupt Minister. Sit down Lungu and let the petition be heard. You not fit to be President let alone CEO of a company!!

  6. +3
    0
    vote

    An illegitimate government can’t take Zambia anywhere. These guys are just liers. You can cheat your fellow gullible PF members but most Zambians see through your lies Mr Mutati. Give us a break.

  7. +3
    -2
    vote

    An illegal government that is used to borrowing carelessly. They are ruling on borrowed time and soon power will be given to its rightful carriers. Kaloba is all they know but can’t give us income generating solutions. Pf are a curse. All mutati has done is travel abroad eating allowances while his children attend top university in the UK. U greedy dogs

  8. +2
    -5
    vote

    Guys,
    A new economic model is needed to extricate the country from this sink hole. Those of us with roots in Zambia, and a penchant for its development, are willing to return and put our shoulders to the wheel to stimulate development. We have the advantage of having grown up children, so we can concentrate on development. The President, Government and Cabinet should pass a bill to make it easier for we expats who have spent decades working in Zambia to return. The country and its people have been accommodating to us, we feel compelled to give something back.

  9. +1
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    vote

    These are bloodsucking parasites who think they can borrow their way to development! You have failed you miserable things!

  10. +5
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    vote

    @Bashi Charuchanya

    Good luck i will be watching you with your shoulder to the wheel while i enjoy a beer in Germany till you realise that you are dealing with baboons

  11. vote

    Mutati is a double edged sword. He will either lift the economy up or destroy it completely. He has the potential for both extremes.

  12. +5
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    vote

    “…….Mutati said the economic recovery programme which Zambia has come up with is purely home-grown and IMF will not dictate anything”.
    REALLY!, free money given to PF government, be truthful Mutati for once.

  13. +5
    0
    vote

    This kind of borrowing is freightening, its sinking the country into an unprecedented Armageddon! I honestly think these PF goons are wholly clueless of what to do fixing this mess they have created. I’m honestly vexed and angry at how gullible Zambians can be to watch their country ruined while they stand aside and Look ?

  14. +6
    0
    vote

    “Mr Mutati said half a Billion US dollars must be injected into the budget so that the economy runs smoothly.………….. and IMF will not dictate anything”.

    I hope ba Mutati was misquoted.

    It is truly mindboggling and self-contradicting for a Finance Minister to characterise the Zambian economy “running smoothly” when in fact the Country is living way beyond its means by as much as HALF A BILLION dollars in one year.
    And the notion that IMF would lend money without preconditions is the mother of all lies.

  15. +2
    0
    vote

    I wish there were a way they can lend us this fund’s in bitcoins; so that way we can trace the movement of the funds since there bend on giving us this Fund with an administration that is not accountable to its people. (PF first, Zambian people second)

  16. +2
    0
    vote

    Borrowing and going back to HIPC? Now that Mwanawasa and Cardinal Mazombwe who fought for Zambians to be forgiven of those debts are no more who will take up the challenge among these drunkards?

  17. +3
    0
    vote

    Its really scarey to hear a Minister of saying he wants to borrow IMF Money to finance the Budget which is largely Recurrent Expenditures. Is Mutati serious to want to borrow IMF Money to finance consumption?IMF’s Role is to lend money for Balance of Payments support and not budget support. IMF Money comes with austerity reforms and other conditions which cover Rule of Law,Good Governance, Respect for Property and Human Rights etc. Can Lungu’s Illegitimate govt meet these conditions? The 2016 Elections remain disputed and the Petition is yet to be heard,determined and disposed off. IMF loans are approved by the IMF Board so the issue of illegitimacy cannot be ignored. The unresolved Presidential Petition is an obstacle to IMF and International Financial Institutions funding for Zambia…

    • +3
      0
      vote

      @Economist:
      Spot on – you are the only speaking sense but it seems no one else has noted important and critical observations that you have raised – well done! Issues like BOP and Budget Support which most of the bloggers don’t even have a clue about but they the issues that critically make Mutati’s message so meaningless and expose his crookedness in the motive for this expected borrowing!! Clearly Zambians are excited by small things that that they don’t even understand!
      Mutati is a dangerous big thief about steal big time soon – that’s is why he has been so loud mouthed for some time now. Let us watch this space closely!! Remember ZESCO where he did stinking bungs in his earlier life until he was forced to leave.

  18. +3
    0
    vote

    Lungu’s legacy: Debt Debt Debt…maime maime, killl kill, arrest arrest and followed by pronouncements that never bear fruit! What a load of rubbish!!

  19. 0
    -3
    vote

    Those who voted for PF are happy with the government.

    But the opposition UPND are extremely bitter, and am not sure if they are sleeping well.

    Their greatest illusion has become their expired petition.

    I potty them, because they think that by singing about the expired petition, PF will be sad. Alas it is the UPND who are agonising and anguishing day and night.

    In any case they have indeed become irrelevant because even when the boycott parliament which they acknowledge exists (made of two parts – national Assembly and the president), they make no difference because business continues uninterrupted.

    They neither add value nor subtract, making themselves more unpopular.

    Come 2021 UPND’s loss will be far more than what they saw in 2016.

  20. 0
    -3
    vote

    Those who voted for PF are happy with the government.

    But the opposition UPND are extremely bitter, and am not sure if they are sleeping well.

    Their greatest illusion has become their expired petition.

    I potty them, because they think that by singing about the expired petition, PF will be sad. Alas it is the UPND who are agonising and anguishing day and night.

    In any case they have indeed become irrelevant because even when the boycott parliament which they acknowledge exists (made of two parts – national Assembly and the president), they make no difference because business continues uninterrupted.

    They neither add value nor subtract, making themselves more unpopular.

    Come 2021 UPND’s loss will be far more than what they saw in 2016.

    • 0
      -3
      vote

      They will have to tell Maureen Mwanawasa to discover (in a bigger bin) hundred times the 14,000 votes she allegedly found in a bin in Kanyama.

      HH will need to convince Maureen Mwanawasa, this time, compromise her values (which I know are different from HH’s), and join his falsehood. But still they will fail to present their case due to lack of evidence.

      They will enter another period of crying for yet another five agonising and years of falsehood deceiving their cadres.

    • +4
      0
      vote

      You are very delusional, you are probably the dummy at state house himself.

    • +4
      0
      vote

      @Peace for Zambia: Not all us who voted for PF are happy anymore apart from a select few with access to contracts or other favors. Poverty affects everyone regardless of political affiliation.
      On the “expired” petition issue, what would have happened if the Concourt heard the evidence from the Petitioners up to the 14th day without hearing from the defendants side? Was there going to be an extension or the Concourt could have ruled based on what was presented in 14 days?

  21. +5
    0
    vote

    $500,000,000 borrowings this year / Zambian population 15,000,000 this year = $33.33 per person including babies and senior citizens. In 2013 CSO stated 850,000 were in formal employment versus 4,650,000 in informal employment. At end of 2016 Zambias external debt was $8,081 million. Add the intended borrowings and divide by population in formal and informal employment and you get $1,560 per employed person to be paid. In short we are doomed…….

  22. +2
    0
    vote

    LT headline, Stanbic says Zambian economy good in 2017. Then why are we borrowing half a billion dollars this year alone.
    A question to all cadres any party, who would want to inherit an economy like zambia’s in 2021 when majority of loans are due for repayment.
    Are we borrowing so much that eventually we beg the lenders to “forgive” our loans as they did before.
    Does anyone have a strategy that can be articulated as to how we are going to repay our debts.
    I read ” we have plans in place” but the plans are never explained or costings shown..

  23. +2
    0
    vote

    Some people are not wrong to say this country will be liquidated one day. How can a country keep surviving on borrowed funds year in year out after more than 50 years of independence? As a nation that is making economic progress we should be able to say that “each year we are reducing the amount of money we borrow” but we keep adding on the gigantic debt we are owing. My Goodness!!

  24. +2
    0
    vote

    There you go, we have said on this fora time and again that there is no escape from the IMF’s austerity measures. Mutati doesn’t seem to speak the truth at all. He wants to take credit for something that he is imagining is going to happen. Why should the IMF monitor the implementation of a home grown, recovery plan in the first place? It does not make sense, just accept the fact that you have finally agreed to their demands in order for them to borrow you US1.3billion. The paradox is that you have a recovery plan yet you are short of US500million to see it through. How do you reconcile the two? You have no more bonds to issue because no sane investor would like spend his investment on uncertainty. The final straw is to bend and let the brentwood capitalist dictate everything while…

  25. vote

    cont: trying to look relevant, shame on you Mutati, you can not compare to Musokotwane patali.

  26. +4
    0
    vote

    1. Zambia needs half a billion dollars of external borrowing this year-Mutati. How much does Zambia need to cut spending this year
    2. Mr Mutati said the funds must be injected into the budget so that the economy runs smoothly. So, the borrowing is for maintaining the same level of wastage?
    3. Mr Mutati said the economic recovery programme which Zambia has come up with is purely home-grown and IMF will not dictate anything. Where are the detailed plans for this home-grown economic recovery programme? During Chiluba we all knew what SAP was how it was implemented.

    4. Mr Mutati said: “I would like all banks across the country to design innovative products for a common man on the street. People in rural areas must also be captured. I am asking banks to reduce on the collateral…

  27. +3
    0
    vote

    requirements to allow people to have easy access to financial services,” he said. These are empty statements. I have never seen any innovative product that one can borrow let alone a common. Borrowing depends on four factors. The level of risk, the banks margins, the amount involved and the duration of lending. It is this reckless borrowing by Mutai that is crowding out the ordinary borrower.

  28. +1
    0
    vote

    please NO. don’t spend before we have made our income. enough. lets pay back our loads!

Comments are closed.