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Friday, September 25, 2020

Government releases its Position on the IMF programme

Economy Government releases its Position on the IMF programme


The nation may be aware that the Government of the Republic of Zambia announced in the 2017 Budget Address that it had developed an Economic Growth and Stabilisation Programme (ESGP) called “Zambia Plus”. The Economic Stabilisation and Growth Programme is Government’s response to among other objectives, ensuring fiscal fitness and overall macroeconomic stability. This is a critical ingredient for higher and inclusive growth, wealth creation and poverty reduction.

The Economic Stabilisation and Growth Programme outlines policy and structural reforms for effective implementation of development programmes under the Seventh National Development Programme (7NDP) that will be launched soon. Some of the key areas of reform under the programme include:

  • Sustaining Cost Reflective Fuel Pump Prices: this reform has been significantly achieved. In order to achieve longer term sustainability, the Government is currently consulting on the framework that will guide the engagement with the private sector in the procurement of petroleum products.

      • Cost Reflective Electricity Tariffs: work towards a phased removal of subsidies on electricity tariffs has progressed.

      • Reforming of the farmer input support programme to improve targeting and minimise financial waste has significantly progressed towards full implementation of the electronic voucher system whose pilot significantly progressed in the 2016/17 farming season;

      • Dismantling of arrears has commenced and will be accelerated during this year. This is meant to unlock economic activity and support viability of the financial sector.

  • Trade Facilitation and Revenue collection enhancement: Government has commenced the development of the single window that will reduce transit times to 48 hours, implementation of the mineral value chain monitoring project and rolling out of Road Toll Sites to enhance revenue and in particular sustainably support infrastructure development. The procurement of electronic devices is also underway to improve VAT collections and adherences to receipting by business houses.

  • Fiscal consolidation: the Government has undertaken to ensure that the fiscal deficit is limited to levels approved by Parliament. Further, reforms on implementation of the Integrated Financial Management Information System (IFMIS), and Treasury Single Account (TSA) have progressed and will be fully implemented in 2017 to ensure strengthened commitment controls on public spending and borrowing. The Government is also making revisions to the Public Finance Act to stiffen the sanction regime, and Public Procurement Acts while the Planning and Budgeting Bill is due for presentation to Parliament to strengthen public financial management and. Further, an amendment to the Loans and Guarantees (Authorisation) Act will soon be tabled to give Parliamentary oversight on borrowing.

  • On monetary policy, the Government is collaborating closely with the Bank of Zambia to ensure that fiscal and monetary policies are coordinated to ensure macroeconomic stability. In this regard, the Bank of Zambia has responded to fiscal restraint and lower inflation, by commencing the normalization of monetary policy. Modernisation of financial sector laws has commenced with the passing of a new Banking and Financial Services Bill by parliament

The Economic Stabilisation and Growth Programme has so far resulted in relative stabilisation of the economy. The exchange rate is stable, investors have returned to the domestic securities market with preference for longer term instruments, inflation has returned to single digits while growth is positive at around 3%, above the Sub-Saharan African rate of 1.4% for 2016. Electricity supply is stabilizing giving impetus to economic activity, mining production that has been increasing following a dip in 2015 and agriculture sector where a bumper harvest is expected for 2016/17.

Notwithstanding these developments, risks remain on account of a deteriorated external sector position that has resulted from weak exports, high fiscal deficit and debt levels, the continued threats of climate change and fragility of the global economic growth. In addressing these threats, financing will be required. Given the high deficit and debt levels that Zambia is experiencing, external support will be required to ensure enhanced resilience and response.

In order to assure the continued success of the Economic Stabilisation and Growth Programme in addressing these risks, it is necessary that IMF supports Government’s economic programme, in particular elevating gross international reserves and providing balance of payments support. This engagement will attract more assistance from cooperating partners and boost investments.

In this regard, Cabinet at its sitting on 11th April 2017 authorised the conclusion of discussions with the IMF on its support to our home grown programme. This followed progress made in the initial programme discussion during the IMF Mission to Zambia from 8th March to 24th March 2017.

The nation may wish to note that the IMF approach has evolved from prescription to engagement. IMF programmes now emphasize ownership of programmes by countries. The IMF also emphasizes on policies that focus on social protection, inclusive growth that has potential to create jobs and reduce poverty including ring-fencing of programmes in the health and education sectors. The IMF has done away with structural conditionalities such as wage freeze as these had a negative impact on poverty.

In conclusion, I wish to inform the nation that the Government will keep the country informed on the discussions with the IMF as they progress. I further wish to assure the public that we are on course with stabilizing the economy and ensuring higher growth rates going forward.

Hon. Kampamba Mulenga, MP

13th April, 2017


  1. This is what IMF want not them submitting to your homegrown programmes.
    Mutati said that IMF has to follow what we want not dictate to us.
    This is to give the impression that IMFbuckled under. We need money admit it so we go to lender of last resort IMF
    When does a borrower tell a lender terms and conditions
    Lady why isnt Finance Ministry telling the Nation how our economy will turned around Sorry didnt see your new title.
    Chief Government spokesperson on Zambia and the IMF programme.

  2. Finally, you morons have accepted what your retard finance minister was refusing. Mismanagement of resources will come under the IMF microscope and you nitwits will no longer have a field day to loot our resources. Zambia plus, what a joke, this was clueless strategy that could not go anywhere unless the IMF pumps in their billions of dollars. Otherwise we were doomed with the lies from Mutati, an empty tin devoid of strategic thinking. IMF please take charge before these misfits condemn us to our early graves. Finally you curled your tails and bent to the bentwood demands . You can not do without them, now they will demand true democracy and not this misguided police state.


      Here is how you should have said it….

      The totally corrupt PF party of thieves has borrowed 10 BILLION Dollars in Zambians name that has now been STOLEN, ABUSED, AND WASTED.

      We have BANKRUPTED the country and are not only BROKE, but have this huge DEBT that you Zambians must now repay. Not us!

      So help us borrow a little more money so we can keep on paying our own salaries.

      SONTAPO! Just look what a good job Lungu and us have done! We are now again FULL MEMBERS of that exclusive Club, the HIPCs!

  3. Lungu acts like he has power and influence when it comes to abusing and persecuting dissenting views. Meanwhile the coward goes to kneel down and suck the imf bosses penls like the little bltchy rat he is

  4. Elo lwanya!! The peoples attention has been diverted from the real economic failures to HH’s arrest whilst these clueless PF clowns destroy the country.

    IMF programs have never worked in any country.

  5. It is clear that this is a reaction to a recent excellent and analytical IMF article on Lusaka Times regarding the uncertainty and non committal stance by the Government regarding the IMF Rescue package. Government, please stop being reactive and be proactive in decision making. Your current way of doing things gives the perception of an incompetent and inconsistent administration.Please improve your public relations and inform the public in time. Anyway, well done for ensuring that the investors now are assured.

  6. Zambia has the audacity to say that the “fragility of tne world economy” contribute to high ficscal deficit and debt as contributing to zambias econmic position. We are the ones that borrowed we are repaying $25 million a month on interest repayments on the bonds
    We are effectively bsnkrupt. What government cannot pay its public service on time. Yes you are correct ZAMBIA
    We on tne path to zimbabwe politically and intrinsically linkrd to those politics economically.
    How do we know we are ready for a bumper harvest. We are waiting for the electronic equipment to replace Fisp yet inputs will be distributed in June. But farmers should save money to pay their own way as well. Can FRA pay farmers before rains we cant pay wages,

  7. Illegitimate Lungu govt is not serious in wanting an IMF Funding Programme. U arrest HH and charge him with Treason and throw him in jail instead of resolving the Presidential Petition and still ask for IMF Financial Assistance. That is laughable. Without respect for Rule of Law, Constitutionalism, Good Governance and Human Rights, Mutati should kiss goodbye to IMF Money. Release HH from Prison and Resolve the Petition issue first b4 thinking of accessing Foreign Financing. Only then will Zambia access IMF and other IFIs Financial Resources.

  8. Spare a thought for your leader you Donkeys. The man is languishing behind bars and you can’t even offer him an Easter prayer? If you don’t care about your leader and offer him spiritual strength, who else will?
    To UPNDONKEYS everything is politics, no wonder you will never be in State House, not even as visitors.

    • Hehehe bally Mr terrible..

      The topic is about IMF not HH , stop trying to cover your incompetence and corruption…..support PF by telling us how many jobs have been created and how many factories not shopping malls have opened ????

      Ehh mu-chembele Mr terrible. Don’t take cover again.

    • Buti these kaponyas are bezarr, every time you ask them how many jobs lungu has created or which investors have invested , they disappear like the bally mr terrible.

  9. HH, seeing that your members don’t care about you let me offer you a message of spiritual encouragement. I pray that you reflect on your irresponsible behaviour and come out of there as a responsible citizen. You can still attempt state house in 2021 and 2026. Unfortunately 2021 is fully booked so you can use the campaign to grow up and understand politics. Maybe 2026 may bring better fortunes if Zambians don’t find a better alternative. I pray this in the name of peace in your country.

    • Hehehe bally Mr terrible..

      The topic is about IMF not HH , stop trying to cover your incompetence and corruption…..Can you give us your thoughts on Zambia blowing 10 billion and running to the IMF one-year later ???

    • Hehehe bally Mr terrible..

      The topic is about IMF not HH , stop trying to cover your incompetence and corruption…..

  10. Sorry, couldn’t read this article from a wrong author over this subject so dear to Zambia. Can we hear from Felix Mutati. Few PF cadres understand economic issues and can mislead us that Lungu has bought a money printing machine for the country to have lots of money.

  11. PF Dunderheads don’t understand how International Financial Institutions like IMF operate. Flexi Mutati should not waste time discussing a Financial Programme with IMF. Becoz of Lungu’s Illegitimacy,poor record of Human Rights, lack of Respect for the Zambian Constitution and poor Governance the IMF Board will not approve Financial Assistance to the Illegitimate Lungu govt. U arrest HH and throw him in Jail on trumped up Treason Charges and then expect money from IMF. Thats a contradiction and Mutati will not get a cent from IMF,World Bank, AfDB etc. Dictator Lungu should forget about Foreign Financial Assistance given the Disputed and Petitioned Election Result. Even Private Banks will not lend to the Illegitimate Lungu govt which Is over borrowed anyway. No Petition Hearing, No…

  12. First of all, the actions of the last 6 years have been criminal. The Eurobonds, putting the taxpayer in debt and paying interest, while ignoring the Windfall Tax, which would have added to the treasury, without debt, and without interest.

    And who invented the Eurobonds? The same people who control the IMF/WB. And own Anglo-American Corporation. And funded Cecil Rhodes, after whom the country was named.

    This is their debt, not ours.

  13. What is this animal called IMF going to help us with apart from what the late Patrick Mwanawasa did by bringing the to zero and today what is happening government workers are still on wage freez for the past two years and the next three year,then who’s going to put the money in seculation if the government worker is getting less and wage freez for five years but the prices of commodities have increased three times double and this animal called IMF come with its conditions and you are saying poverty reduction how try and explain to the people well so we can understand very well what this animal planning to do to us Mr mutati…thank you.

    • A Yuss cartoon in the late 1980’s sums the IMF succinctly.
      It portrays it as coconut tree growing in my yard, but leaning over the fence into my neighbour’s yard. I water the tree every day. However, the coconuts fall in my neighbour’s yard.

  14. IMF are not for developing countries, they will always make deals that are designed to hold African countries or any developing nations back because they know most politicians are corrupt and will take any deal without thinking long term or about how the deal will affect the masses and keep them in debt..we need better negotiators and transparency on how the money is spent! Building a road that hardly anyone will use as a PR stunt is becoming old.

  15. Why cant anybody have the balls to admit that CORRUPTION is endemic in Zambia. All parties are not nation focused just chewing focussed.
    Poverty and greed then blame someone else ..It is us. Because of poverty we want kwik cash but national economics is about a plan based on whst country can afford.
    Fix salary payments in all sectors then we have cash flow cycle not peaks and troughs.
    Money on roads ,some could have been used to promote agriculture. Unjveritie every where but only recognised in Zambia, where do graduates get jobs, we promote agriculture but no agriculture colleges built.
    Want manufavturing but no electricity. Have a realistic plan not just talk,We can do it

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