Friday, March 29, 2024

The IMF supported Program to Zambia is welcome-JCTR

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The Jesuit Center for Theological Reflection [JCTR] has thrown its weight behind the planned IMF Supported Economic Stabilisation and Growth Programme for Zambia.

According to an advisory note from JCTR Executive Director Fr. Leonard Chiti addressed to the Minister of Finance Felix Mutati, JCTR will back the proposed IMF support to Zambia if no stringent conditionality is attached.

“The economic cost of not seeking support from the IMF would be severe for Zambian households and the economy more generally,’ said Fr. Chiti, adding that, “the government should increase social protection expenditure to cushion low poor families from removal of subsidies.”

BELOW IS THE FULL ADVISORY NOTE FROM Fr. LEONARD CHITI – JCTR EXECUTIVE DIRECTOR

JCTR will support the proposed IMF support to Zambia if no stringent conditionality for a bailout programme is attached.

It is our understanding that the proposed package could among other things:

· Help government address the current balance of payment situation;
· Provide fiscal relief thereby ring fencing government plans to invest in social services;
· Boost investor confidence in the economy which has been declining; and,
· Enforce discipline in the management of public financial resources which has been lacking from government.

Our major concern however on the Economic Stabilisation and Growth Programme for Zambia is that, most of the measures proposed in the four pillars of the programme are not new. They have been proposed before but government has been reluctant to implement them.

We are also concerned that removal of subsidies seems to be the easiest measure to implement and yet other expenditure measures such as government trips, and proliferation of central and local government layers of administration are not being cut back.

We therefore urge government to increase social protection expenditure to cushion low poor families from removal of subsidies.

So overall, the IMF bailout is welcome but the conditionality of reducing expenditure/ removal of subsidies must take into account needs of the poor. Already we have seen ZESCO increasing life line units from 100 to 300 units. Meaning poor people will continue paying old rates on units less than 300.

Finally we wish to state that the economic cost of not seeking support from the IMF would be severe for Zambian households and the economy more generally. If Zambia does not access an IMF loan in order to help implement the home grown recovery plan, it might lead to further debt accumulation and more and more public resources being spent on debt repayment. This might result in less investment in health, education and other services that benefit the citizens.

Meanwhile Finance Minister Felix Mutati is today scheduled to leave for the IMF/World Bank Spring Meetings to be held in Washington, United Stated of America.
In acknowledging receipt of the advisory note from Fr. Chiti, the Minister commended JCTR for being candid in their submission stating that dialogue and collective ownership is the hallmark of successful homegrown developmental programmes.

Chileshe Kandeta
Head-Media & Public Relations
For/MINISTRY OF FINANCE

7 COMMENTS

  1. I have read the story on this and hope it is supporting pressure Lungu and the way he has handled provocation from UPND.

    Thanks

    BB2014,16

  2. Watch this space!

    The IMF can’t lend~kaloba~ to corrupt, anarchist, violent PF bandits of visionless Lungu money.
    Here
    are examples of why IMF can’t help blind Lungu’s PF & its corrupt & violent bandits:~
    ~The rule of law is DEAD.
    ~The Police service is now PFolice cadre academy.
    ~Media Freedom, Expression or Association all are DEAD under lawlessness PF.
    ~The Judiciary is ROTTEN.
    Apart from LAZ under sweet & professional Linda Kasonde, ALL other institutions are DEADLY ROTTEN to the CORE.
    ~Until the Presidential Petition~2016 is heard by credible courts & Dr Mmembe’s Post newspaper is opened ASAP, forget IMF kaloba again!
    The Skeleton Key
    ~206~

  3. @Skeleton
    You are dead right. IMF are not so foolish as to take that risk of investing their money into an animal farm.

  4. Its laughable that Mutati is expecting to receive IMF Money while Lungu is lambasting the USA,EU and Western govts for criticising him over Human Rights violations in Zambia. While HH is in jail on trumped charges and the Petition is unresolved. Lungu and Mutati are naive to think they will get Financial Assistance from Western Financiers and Donors while the Illegitimate Lungu govt is ignoring the Rule of Law, Good Governance ,Constitutionalism and lack of respect for Human Rights. At the rate Lungu is misgoverning Zambia, Western Sanctions beckon. Until the Petition is heard,determined and a Court declares him the Winner he will remain illegitimate with dire consequences.

  5. The Vatican, Rothschild, Rockefelle, iMF, and World Bank work together to keep Africans poor by keeping their interest rates high so they can live in perpetual poverty. These evil people know Tha Africans are real Hebrews, real Jews so these Satanists hate Africans.

  6. But why is the govt banning the harvesting and exportation of the Mukuula tree, the resources which could have eased the balance of payment? Why cant the govt monopolies the selling of this resources and earn us alot of dollars capable of transforming our economy from copper dependance within a short although it is also wasting asset. . I say this because a Scania load truck of this Mukuula logs is sold at K1million in Chine according to the President speech in Isoka recently.
    JCTR, this Govt need the most stringent CONDITIONS because of the imprudent handling of funds or if at all we weant to see the bailout of this economy. Recent loans we have gotten from IMF has not been utilized the way it was supposed. IMF should be very closely monitoring all national transactions so that no…

  7. i was one of the people who was deportes no reson given or no court i have my properties in zambia i was there in zambia for 60 years so y should IMF give these fools money y i m now taking my case to ICC

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