Minister of Finance Felix Mutati.
Former Minister of Finance and Minister of Works and Supply Felix Mutati

Former Minister of Finance, Felix Mutati has said that securing a financial bailout from the International Monetary Fund (IMF) has now become a matter of urgency. Mr. Mutati said that if Zambia does not secure the $1.3 billion government is seeking from the IMF, there will be a significant deficit on the 2019 national budget.

Speaking during a public forum organized by the Association of Chartered Certified Accountants (ACCA) in Lusaka, Mr. Mutati said the 2019 national budget will actually unhinge.

Mr Mutati said that the the country therefore has no option, but to ensure that its engagements with the IMF result in, among other things, the rise in the confidence of investors in the Zambian economy.

Mr Mutati also observed that the bad weather forecasted for 2019 also poses a risk to the Zambian economy as there is a likelihood that the agriculture sector and power generation will be affected.

Mr. Mutati also said that he further foresees the Zambian economy being affected negatively if the toxic conversation on alternative facts being generated within the country continues in 2019.

Mr. Mutati has also observed the need to the deal with the risk of the pace of fiscal consolidation particularly with regards the implementation of the austerity measures.

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23 COMMENTS

    • Mutati was an IMF darling unfortunately he couldn’t implement any measures as PF empty tins know nothing about austerity!!

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    • Loans from the IMF are not the solution for Zambia. The country needs a revised tax policy that collects between 45% to 55% of the export value of copper and other minerals. This will bring in a minimum of US$3 billion per year in revenue to the Treasury. Further, ZRA needs to recruit “Indirect Tax Specialists” – able to identify and resolve complex VAT risks particularly relating to the Partial Exemption (PE) regime and cross border transactions. (PE is the set of rules — legislation, policy and operational practice — by which partly exempt VAT registered businesses determine what proportion of the input tax they incur on their costs can be recovered from ZRA. The tax that they are not allowed to recover is “sticking tax” or “revenue” for the Treasury.)

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    • Zambia doesn’t need IMF bailout. What Zambia needs is just good management of resources. Please Zambia NEVER take that route.

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    • @Ke Nako: sadly, that dream of having “investors” work for us and leave their money here will never come true. The Chileans realised this and kept some of the mines to run themselves so that sales of all that copper would hit Chilean banks instead of the royalties and taxes “change” we receive. As long as we subscribe to the attitude and mentality that we can’t run the mines ourselves, it’s change we will receive!!

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    • We are all dumb. We borrow, the country goes broke and someone gets rich. But we still don’t know where the money goes

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    • Dr. Mahtani has promised to get investors from Asia and East Europe to bring in $1.3 billion.President Lungu is in process of nominating him as minister without portfolio.

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  1. This man does not know where he is…he still thinks he is an observer; its good he was sacked as he would easily stated I was not part of it!!

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    • Even HH doesn’t know where he is. In MONGU he thought he was a President but he needed someone to remind him that not the President of Zambia but a “A President of a tribal gathering also known as UPND – a party of INCOMPOS.”

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  2. Oh no mutati is an alarmist….he will incite violence. hehehe jackass. Anyway dununa reverse is on the chorus.

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  3. These r self created problems, we were m a good financial standing till some people took over and dag this pit for us now we are busy begging each and every Jim and jack for money when this was not supposed to be the case, even when borrowing for your house hold you budget how you will pay back, you don’t look to your neighbours to help pay back your debt, then u are not man enough

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    • I suggest you hold your breath forever. Why should it take you to talk after a kick in the bqt. You had the voice then and you decided to keep quite. Maggie is MMD and you are ‘a’ president of MMD it can only take a phone call to relay this information.

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  4. How can borrowing $1.30bn from IMF become a matter of urgency? Suppose the lender does not give you the money .Does this guy or any of the people running this government understand the real threat to the economy? The problem is very clear to every one ,cutting the unnecessary spending , cutting the wanton corruption and cutting the theft of public money, this is what should be a matter of urgency. To begin to live within ours means.

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  5. IMF will not and should not bailout Zambia. Our economy is being extravagantly extracted and GRZ sits idly by. First we need a more rigorous tax and mineral royalty policy. Secondly we need to implement a rule where proceeds from such economic activity can not be extracted for a certain period of time say 5 years. We have completely lost control of our mining and financial or banking sector. Simply put it’s time for reset!!!

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  6. Give these thieving crooked P.F, Gulugufe’s I.M.F cash, & rather than mend the problems in our society, i.e. lack of proper Schools, Hospitals, Farmers inputs on time, they go & buy flashy Toys – Jets to fly Chagwa a D.D.O – (Daily Drinking Officer) all over the place.
    You can clearly see from Jonathan Chagwa’s behaviour he NEVER had any toys as a child, hence his excitement in procuring flashy Airplanes (Toys), that WONT benefit the common Citizen.
    All this while Useless Godfridah, does NOT condem this abuse of power, office, & resources, coz Godfridah’s brain is wired to her Big Belly, & hence the spouting of such shameless nonsense like Jesus is mu Bwato!!

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  7. Thank God he was fired ! How can an enture ACCA body host a forum for Mutati to persuade government to borrow from IMF . This man failed to advise government when he was Finance Minister on how to get reasonable Taxes from the mines so that we do not borrow anyhow. IMF is not and will never be a solution to our problems.

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  8. Malabishi baba mutate. GO HOME AND CHECK ON YOUR ASS.IN ZAMBIA THEYS ALOT OF CASH BUT THE TOP LEADERS ARE THIEVES AND THEY ARE BRAINLESS.
    I FORESEE ECL AND HIS FRIENDS GETTING EMBARRASSED LIKE ZUMA AND HIS CLIQUES.THIS TIME ZUMA IS LIKE A WORN OUT CHITENGE.

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  10. IMF has more sense not to lend money to this delinquent PF government of Lungu.
    They will just waste the money on fake contracts

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  11. As stated in Luke 14: 28.. Suppose one of you wants to build a tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it?

    This is the course we need to charter.. when experts say you cannot borrow yourself into prosperity as the borrower is a slave to the lender, it means just that.. Let’s be innovative in wealth generating avenues by supporting the local industry as opposed to over taxing it.. and lastly, could govt stop being extravagant and apply discipline across the board!

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