Price WaterHouse Coopers economic adviser Joseph Chibuye said the current state of the Zambian economy will not see new investors coming to invest in the country.
Mr.Chibuye has since appealed to government not to default in repaying its debts.He said the poor performance of the kwacha is putting more pressure in debt servicing.
Mr. Chibuye said this in his Zambia’s 2019 National Budget analysis and outlook at protea hotel in Ndola today.
And PWC tax expert Jyoti Mistry in her presentation said a volatile tax regime is not conducive to long-term investment.
Mistry said concentrating the revenue generation measures on the mining industry renders the Zambian economy highly vulnerable to movements in commodity prices and global economic conditions.
“Additionally, mineral royalty tax will no longer be deductible as a cost for purposes of determining the taxable income. Whilst the majority of the mining sector will face an additional burden, companies that use the copper cathodes to add value will see a reduction in corporate income tax rate from 35% to 15%. It should be appreciated that a volatile tax regime is not conducive to long team investment,” Mistry said.
“The impact on jobs, investor confidence and investment arising from the last spate of reactive changes to the mining tax regime between 2013 and 2015 should not be forgotten. It is also a great concern that the current pipeline of exploration projects has diminished significantly. Any disinvestment or curtailment of operations by these companies would have a significant impact on the rest of the economy.”
She said it must be appreciated that the Zambian economy is still highly dependent on the mining sector.
“Given the country’s difficult situation, government may have taken a calculated risk by concentrating the revenue generation measures on the mining industry. However, this is a precarious measure as it renders the Zambian economy highly vulnerable to movements in commodity prices and global economic conditions.”
Mistry said the private sector is the main potential engine for economic growth in Zambia.
“Despite this, the sector faces an increasing number of obstacles that could hinder its development. Most notably, government domestic borrowing continues to crowd out the private sector. Government says it will address this by dismantling arrears, although it has yet to give details as to how it will fund this. The private sector also faces increased costs in light of the new 30% restriction on interest seduction on loans, as discussed earlier, plus the recent increase in minimum wages.”
“Furthermore, continued kwacha weakness in light of Zambia’s Fiscal position and higher fuel prices could also weigh heavily on an already over burdened private sector if these trends continue,” she said.
The function was also attended by Ministry of Finance permanent secretary Emmanuel Pamu. Dr Puma attributed the depreciation of Kwacha to more importation than exportation of goods.
Tabaumfwe imwe… when people speak the truth we are called prophets of doom…
Alá fisoso fibantu ifi!!!
The citizens have been so dieducated to an extent where they are so gullible including some leaders…
Leaders whose motive is to save themselves and not the nation.
We are officially trapped in a self empoverished circle…
We are the author of our own misfortune
They give them crumbs and they still vote for them for being feed on crumbs… uli chisoso iwé!!
Tabaumfwe imwe… when people speak the truth we are called prophets of doom…
Alá fisoso fibantu ifi!!!
The citizens have been so dis-educated to an extent where they are so gullible including some leaders…
Leaders whose motive is to save themselves and not the nation.
We are officially trapped in a self empoverished circle…
We are the author of our own misfortune
They give them crumbs and they still vote for them for being fed on crumbs… uli chisoso iwé!!
Falling Kwacha is actually good for anyone abroad because a lot of things are NOW affordable,
We should be praising it.
I will NEVER live in Zambia so why should i be upset with a falling Kwacha?
Thanks
BB2014,2016
Iwe naiwe Chibuye why so jealous?? PF are celebrating their Budget. Stop pulling them down. PF get focused with your Award winning president.
Tabaumfwe imwe… when people speak the truth we are called prophets of doom…
Alá fisoso fibantu ifi!!!
The citizens have been so dis-educated to an extent where they are so gullible including some leaders…
Leaders whose motive is to save themselves and not the nation.
We are officially trapped in a self empoverished circle…
We are the author of our own misfortune
They give them crumbs and they still vote for them for being fed on crumbs… uli chisoso iwé!!
Meanwhile, Fuel prices have gone up! You are busy arguing about the merits and demerits of your 2019 when the army worms of depreciating kwacha and inflation have already started decimating that worthless 2019 kwacha budget! Good night Zambia for now! Wake me up in 2021!
Someone rush dull Lungu quickly to the airport and shove a mic in his face. That’s the only way he will say anything, the twit.
2019! Would not come and end up well. I am seeing ourselves ending up like Mugabe’s Zimbabwe
If money from Panama were to be returned, there will be good performance of the Kwacha.
Shame man I feel for the Zambian people business people can even afford to travel and buy stuff to resell because of the tumbling kwacha really sad. Any way that’s dununa reverse for u
PwC now you will be called all sorts of names and some miniscule party member and Monday Chanda or this mwanza fellow will now come up with a long article using big words from their thesaurus to counteract all that you have said.
Dear Sirs at Lusaka Times,
I hope this email reaches you well.
Based on your national integrity as Zambian people representing a highly reputable Media institution, I am hereby presenting a very dangerous topic that would affect the Zambian people especially youth and hope that you will be following it with police and keep my identity discrete.
There’s a Lebanese man called “Omran Talal Kaddoura” lives in “Green Park Estate” – Kafue Road and has a company under the name “OTK”. Kaddoura is a big drug dealer and has a very big cover from corrupt officers using “unclean” money so he can have a very big quantity of hash and other drug kinds in his office and his house (Villa F8) in Green Park Estate which is owned by his uncle, gated and highly secured.
I believe your love for…
The kwacha had hit 14 a few years back to correct some instabilities. Same will happen now since economic fundamentals haven’t changed just as then when speculators & frightened investors caused its depreciation.
These Western World Accountants are pathetic. Let them shove the beans they count & clueless of how it grown up their …….!!
Bonehead Mushota talking rubbish again!!!