The Economics Association of Zambia has accused Anglo-American of funding Dr. Greg Mills, the Head of the Brenthurst Foundation and using him as a front to advance ill agendas aimed at discrediting African nations in achieving selfish objectives.
And the Association says it is more than convinced that Dr. Greg Mills intention is to cause asset sell off pressure that should force Zambian authorities to resort to realizing its stake in the mines which whoever is funding him has keen interest in.
Reacting to his article entitled “Avoiding debt default and turning Zambia around, Association Deputy National Secretary Rita Mkandawire said such reporting is inconsistent with what the Brenthurst foundation believes its mandate is to seek ways of funding Africa development.
Ms. Mkandawire says the EAZ Board finds it sad that, instead of focusing on the macroeconomic challenges such as a consequence of rolling black outs, corruption and highly politically volatile environment in South Africa, Dr. Mills has opted to immaturely misrepresent facts in a country which he has not even resided in.
She said the Association has observed with regret that such poetic and extravagance of likening the Zambian debt situation to an alcoholic is malicious and immature which the Brenthurst Charity proprietors should not allow as it reflects very ill intent on the part of its writers.
She has challenged Dr. Greg to stop hiding under the wraps of independent journalism with malicious intent to focus on reporting the macroeconomic challenges his country grapples with.
Avoiding debt default and turning Zambia around — at the same time
Below is the full statement
THE ECONOMICS ASSOCIATION OF ZAMBIA
For immediate release – 04 March, 2019
ECONOMICS ASSOCIATION OF ZAMBIA RESPONSE TO MALICIOUS ARTICLE BY GREG MILLS OF THE BRENTHURST CHARITY FOUNDATION ON ZAMBIAS DEBT POSITION
The Economics Association of Zambia – EAZ would like to respond to the recent negative publicity through a damaging article entitled Avoiding debt default and turning Zambia around — at the same time written by Dr. Greg Mills of Johannesburg based Brenthurst (Anglo-America funded charity). The Association wishes to state that Dr. Greg Mills is well known for his Op-Ed articles with intent to damage reputations and cause panic in the international capital markets in the name of independent journalism with exaggerated facts. Such reporting is inconsistent with what the Brenthurst foundation believes its mandate is to seek ways of funding Africa development.
The EAZ Board finds it sad that, instead of focusing on the macroeconomic challenges such as a consequence of rolling black outs, corruption and highly politically volatile environment in his country, Gregory opts to immaturely misrepresent facts in a country which he has not even resided in. Regrettably, the Association will not sit back and allow uninformed facets of society to misrepresent and paint an inaccurate picture that has damaging effects and could result in investor jitteriness in a country that is on a path to fiscal fitness recovery in the medium term.
The Association observes with regret that such poetic and extravagance of likening the Zambian debt situation to an alcoholic is malicious and immature which the Brenthurst Charity proprietors should not allow as it reflects very ill intent on the part of its writers. Let alone Zambia’s external debt is in the public domain and it is not rocket science that infrastructure spend which is being carried out with good intent has contributed to the USD 9.51 billion stock. This is nothing new at all.
The Zambian authorities have admitted to the current stock and have instituted aggressive measure to manage the stock through austerity measures and a Medium Term Expenditure Framework (MTEF) which should see the copper producer on a path to fiscal recovery in the medium term. This the Association believes is not anything new to the outside community. The Zambian authorities have been transparent with through sharing of quarterly fiscal reviews. Zambia’s balance sheet vulnerabilities are in the public domain and so are the measures that its authorities are taking to correct.
The Association also acknowledges that reserves have fallen to USD$1.6billion but in mitigation, Dr. Greg seems uninformed that the authorities have placed measures such as allowing of remission of mineral royalty taxes in dollars directly to the central bank and that gold will also be added to the stock to assist boost the low stocks. A good and well researched writer would be bringing out all these facts as opposed to one legged facts, the Association believes.
Zambia’s Head of State at the opening of the World Bank International Development Corporation in Livingstone acknowledged copper producer’s debt position and assured international stakeholders that his Minister of Finance and her team were working the around the clock to ensure that Zambia honors her obligations. This same sentiment was echoed by the Minister of Finance and her Permanent Secretarial team. The Association is also cognizant that the 2019 debt service repayments are in excess of USD$1,408 million which the authorities have given assurance a debt redemption strategy is in place, however what is very worrying is the spirit in which Dr. Greg Mills Head of the Brenthurst Foundation reports such data with malicious intent.
The Association further wishes to school Dr. Greg Mills that it is true that FQM did express interest in the states 20% stake in Kansanshi mine but the full picture is also that this was not the only unsolicited for bid, other mines have put offers on the table. As though this is not enough, the Association wonders why offers would increase if Zambia truly is not a favorable mining destination? The Association, thinks that it is a sad state of affairs to fuel propaganda and accusations on the state of the mines which the government has been fighting to correct through tax measures that will allow citizens to enjoy the benefits of resources resident in their backyard. It is about a dry point of construction that Africa in 2018 set its foot down through mining tax regimes that is more citizen centric which has been seen in DRC, Tanzania and Zambia which never in the history of the continent has been see. The Association believes the era for Zambians to be bulldozed around on matters such a taxation is over and that Zambians are alive to many facts and as such will going forward stand for what they believe is true and right.
The Association has done its due diligence and has established that Dr. Greg Mills – Head of the Brenthurst Foundation is funded by Anglo America and are skewed to believe further is being used as front to advance ill agenda’s aimed at discrediting African nations in achieving selfish objectives. Anglo America is currently conducting explorations which reflect intent to re-invest in Zambia and such articles could just jeopardize relations with the authorities and as such the Association would like to caution Dr. Greg from hiding under the wraps of independent journalism with malicious intent to focus on reporting the macroeconomic challenges his country grapples with. If truly the Brenthurst foundation aims to seek ways of funding Africa development, then Dr. Greg would need to rethink his writing style and base it on facts with more mature intent.
The Association is more than convinced that Dr. Greg Mills intention is to cause asset sell off pressure that should force the Zambian authorities to resort to realizing its stake in the mines which whoever is funding him has keen interest in.
The Association will not allow this kind of sabotage to happen but will expose such ill intended motives.
ECONOMICS ASSOCIATION OF ZAMBIA
Ms Rita Mkandawire
Deputy National Secretary on behalf of the Board
Dont ever make a mistake. He has made himself a life president of a political party and he refuses to account for all his past actions.
In uganda they have Besinge who keeps loosing. Why not give chance to another leader to stand on oppositio
PF is a verry fragil party which will die a natural death but as long as the main opposition leader controlls and holds on to 3 provinces , this process will take long
Lubinda Habaazoka’s boot licking is worse than that of Sunday Chanda. Sunday can be excused, he is not as educated as Lubinda. Zambia’s monthy debt repayment is more than the reserves and EAZ is happy singing praises to their “naked king”.
This press statement appears as if it was issued by the PF Secretariat and given to the EAZ to issue it out. Something is not adding up with this statement.
PF DIARRHOEA STATEMENTS, THE HEAT IS ON. WHEN STEALING YOU FORGOT ABOUT GRAVITY
EAZ’s statement does nothing to refute the article by Greg Mills. Haabazooka never quotes figures, statistics in his articles. I’ve heard pipo say that Russian Doctorates/degrees are substandard. Instead please intelligently answer the points raised by G. Mills:-
– Foreign debt has ballooned to $9.5-billion, plus government guarantees $1.2-billion & local debt of over $5-billion.
– The debt-to-GDP ratio has increased from 25% in 2012 to more than 70% in 2018.
– In the 2019 budget, external debt service payments will increase by 90% to $1.4-billion. Debt service costs will accounted for 27% of all revenue raised in 2018, risks becoming the largest component of government expenditure.
– The civil service comprises 237,000 of the 625,000 people who are formally employed in the economy…
CONT’D….
Civil service salaries now account for nearly 50% of the budget. If debt service is 50% of the budget and salaries the other half, that will leave nothing over to enable development.
– Increased debt risks saw Zambia downgraded by all three credit rating agencies in 2018, while the price paid by investors for Zambia’s Eurobonds plummeted to 75c in the $-USD.
Tell me double h is not behind this. This is a smoking gun.
If you look deeper and deeper and deeper you will find his foota and figure prints; and DNA all-over this mess. Some there there ugly remnants of the suspicious jigsaw puzzle dealings of double h dark world.
The menacing reality of the very doubts we have on this life serving opposition discredited crooked business figure.
Honestly, I smell a fat rotting rat in the closet.
Tell me double h is not behind this. This is a smoking gun.
If you look deeper and deeper and deeper you will find his foot and finger print; and DNA all-over this mess. Some there there ugly remnants of the suspicious jigsaw puzzle dealings of double h dark world.
The menacing reality of the very doubts we have on this life serving opposition discredited crooked business figure.
Honestly, I smell a fat rotting rat in the closet.
That is why comments from the deads sound defensive and outrageous. Spooky.
Okay EAZ under their new leadership, has been pro-PF
INSTEAD OF LISTENING TO PEOPLE YOU CRITICIZE, SHUTDOWN OR ARREST PEOPLE WHO SHOW ANYTHING THAT THE GOVERNMENT IS DOING WRONG. LUSAKA TIMES IS WORKING WITH YOU TO SHUT PEOPLE UP – BA LT YOU HAVE BEEN BOUGHT BY PEOPLE WHO ARE AGAINST FREEDOM OF SPEECH. THE SOUTHERN PROVINCE IS BEING TAKEN OVER BY THE ARMY WITH BASES BEING BUILT EVERYWHERE -WHY TO CRACKDOWN ON OPPOSITION DURING ELECTIONS……………………………………………. OUR FREEDOM HAS GONE JUST LIKE OUR BROTHERS ACROSS OUR BORDER SO ARE WE TOO NOW IN A DICTATORSHIP…………………..
Bitter liar, probably a rogue element.
Useless alarmist.
It is sad to see the Economics Association of Zambia reduced to a branch of the Patriotic Front party all because the institution’s objectives and agenda has been dragged into a person’s hidden ambition.
EAZ, IBA, LAZ etc
No no no they are defending your country against fake economic news. Why are you jittery? Is your leader part of the cartel to discredit our country and economy?
Suspicious elements.
When did EAZ become spokespersons of GRZ? We all know that Anglo are bankrolling that five time loser but Habazoka’s association should stick to economic arguments. Let Dora do the attacking of that useless foundation which keeps promoting a rejected product
Their concern is the economy. They have a mandate to look through bottlenecks in the economy, inspecting tge economy from A to Z. They are just spelling out some smoking gun.
Is your leader in the thick of it? Why are suspiciously worked out? Have you just been caught? Be sober kid.
But Lungu has being waging a very real economic war on poor Zambians since he took over.
Having read the article in the Daily Maverick, yes the author is trying to convince Government to sale off its stake in a “dying industry.” Question is, why would any investor get into a failing venture? On that premise, I agree with EAZ’s perception. The author should have shown that all fiscal measures that Government has put in place, were not adequate to steer the economy towards a perceived acceptable debt level.
To curtail such perceptions, Government should now explicitly show the roadmap to a “debt free status” with timed key action strategies. This way, the public and investors (not only EAZ) would be able to independently assess the credibility of such articles based on Government’s roadmap.
You are the true son of the land.
Akainde and his minions at work
No matter which side you’re on,its a very risky game when we start to politicize Zambia’s economy .The military + the economy = no go zones for politics.
What are you talking about? Economic emancipation requires sound policies. Politicians make policies. How can you then separate the economy from politics.
Policies + the economy =political agenda of a party or president or Manifesto. Your comment doesn’t add up.
Nope , a sound economy requires objective policy decisions insulated from undue political influences.
They closed Prime TV
Ooooh please!
Cry us a river.
EAZ should not be issuing rebuttals that are political in complexion. They should be issuing publications that actually show the facts so they can speak for themselves. Since when did scholarly posturing include defence against propaganda? Awe shuwa tasaukilatu!
…unless LAZ????
What can an Economy do if we allow
Negative publicity? Remember debts are never given to a person without capacity…….yes we are not ok n we know it. but that does mean that it’s ok for someone to exergerate issues and add things that are not there. The catch here is that Angro-america is sponsoring the propaganda against the standing of the economy in Zambia. The question must be y?
Jay 1 how many properties does the banks repossess from loans give to pipo who seemed to have the ability to repay.
“….Rather than being put exclusively to productive purposes such as investing in infrastructure, much of this new debt has been spent on salaries and corruption….” wrote Greg Mills.
It is an article devoid of facts and downright cr@p. The regime change machinery having failed in Kenya, DRC, Zimbabwe and Zambia have run out of ideas and have now resorted to gutter journalism and lies. Listen to their proxy here, kainde-“…parliament doesn’t represent the will of the Zambian people….” ZAMBIANS ARE TIRED OF THESE LIES THAT CAN’T BE PROVEN. TIME IS RUNNING OUT AND 2021 IS FAST APPROACHING….
The problem is that people don’t read and understand before u start commenting. What so sad is that the people claiming to be more educated are the ones contributing in a very wrong direction. If people are to contribute positively let them think in accordance to the question. Because honestly the foreigner is doing propaganda against your country…..but u are the first one to defend him. Regardless of the debt burden that Zambia has, its not up to angro-america to start sponsoring propaganda against us they are worsening the situation. Dr. Greg is a fool to preach bad about our country. The objective is to scare away other investors so that they monopolize the market and control us…no!! It’s good we av people who have the right education like the Madam at EAZ who understands what…
You are just indebted and now you have to blame everyone for your failures, the Brenthurst Foundation is an independent body who give analysis on all African countries and the fact that you over borrowed is not their problem but yours, all they did was to put the facts out there.
What Independent Body? These are vultures with vested interests.
Don’t ever think European nations want to see Africa rise. A strong economically strong Africa and China make the western world obsolete. Always remember that.
The Article By Greg Mills-It’s content is not criticised -Can the EAZ point out the specifics in the article that have made them say what they are saying-If By 2006 Zambia was owing only 1billion in dollars and a mere 12 years later. The country is owing more than double that number, then there surely must be a problem-a big one-.Therefore, its unwise to critise the ones that are pointing out on the facts. Wake up Zambia.
How do you waste time and start criticising LIES???
Fake news is fake news. Your Country is underfire from elements bent at discrediting our effort. Isn’t double h after the 20% mine shares held by ZCCM IH? How selfish.
Your country underwent serious difficulties seeing it undergo 5 finance consuming constitutional elections within a space of 10 years, 2006, 2008, 2011, 2015, 2016. You can’t escape that. Economic dynamics changed. Lie with honor bwana.
EAZ-ORIGINAL – If you were analytical you would be saying let’s account for the borrowed money – not just how the debt has ballooned. What if we find the money on infrastructure development – with an unacceptable level of stealing, of course? In recent years Zambia has changed – investment in infrastructure development can be seen. We stagnated during the liberation struggles as we did not invest in infrastructure. If we did not borrow massively, there is no way we were going to see this massive improvement in infrastructure. We can do better of course, but we have done something.
When a country can be less powerful than an organization, then it is a failed state.
You lie
Subtracting from the sentiments expressed by the Association does not merit any credit in this situation. Its clear even for a “blind man” to see that it is actually a sway to make us take the road to Hell. There is an input in this from our own man who wants to get to the top by hook or crook. God shall judge him accordingly.
Why is debt so stigmatisation being highly given attention it deserves. Show me a national that developed without debt and I will show you a healthy nation that does not eat food.
A country with an impeccable flow of elections and bye elections within a space of 10 years: 2006, 2008, 2011, 2015, 2016; 3 general and 2 presidential bye elections. You can’t escape that. Economic dynamics ought to change. Couple that with a bit from commodity price drop. The ZMW and the Rand got wacked – recovery is slow too.
With so much strain on the economy as a result, why wouldn’t you borrow?
Indeed why wouldn’t you raise taxes.
I thank got the presidential bye election was unequivocally dealt with squarely.
Spot on, Thorn. That’s the truth upnd doesn’t want to tell the population but instead they have heaped the lies on PF/ECL and want to look like they are the savoirs. Even HK is using the same tactic. What useless opposition we are cursed with.
Thorn – Spot on – in fact, the world better take note about a country that can manage 5 elections involving a President in 10 years and be still as peaceful as ours.
Don’t support this devil Greg what ever the case maybe. He has ill intention only, and nothing more . What statement has he ever issued on his country which is grappling in all forms of scandals, corruption, crime, load sheddings , state capture …? He has no moral right to talk about Zambia’s problems. Have some sense of patriotism,and love for your country and never allow your worst enemy to prescribe medications for you , because that will be his chance to give you lethal injection. We have to put our leaders to serious scrutiny and accountability but Greg should not stick his filthy nose into our affairs
Truth pains..but pain is the first step to resolving matters. Pain is a very gracious mechanism build in our bodies so that once aware of it, we can do something about it. Trouble is that when the economy is in pain, we want to deny it. Whether Greg is sponsored or not, the facts is we are in trouble. So EAZ focus on finding solutions than what others think are solutions. So give us alternatives.
They walked out of KCM after Mazoka lost to Mr Levy Mwanawasa in 2001
“The question is: Can Lusaka think of them and not of the next drink?”
Anglo blew it. Now they are blowing the chances of their surrogates. Zambia’s prospects are fantastic. Critics are wasting time dwelling on bumps and figments of processes instead of buying in. Zambia will reap the windfall of a re-surgent Congo. It’s a gateway to Congo and has many good prospects of its own.
Fear of debt is psychological yet without debt you are dead as a dodo. Current debt management is sound and is constantly being improved. So what? US and China’s debts are growing infinitely but they are doing even better because debt is part of the economic business too. Zambians should take part in the debt industry too instead of falling to such rants blowing the opportunity of gaining from lending to the state.
HH smells like rotten eggs. This chap, what does he take Zambians for? After stealing our mines assets by mismanaging the privatization programme and then recommended to his stup1d and f00lish friends called Anglo America to pull out of Zambia, he now wants to try and paint President Lungu and the PF as bad people so that he can enter State House through back door and come and loot our resources, the chap must know that if we havent done much to finish him in the past elections, this time around, he will regret having been born.
These croocks have realised that copper has become a hot cake due to the changes in technology innovations for electric cars (see commodities price outlook reports) he now wants the Anglo American crooks who run away from Zambia to come and steal from us again…
contd
These croocks have realised that copper has become a hot cake due to the changes in technology innovations for electric cars (see commodities price outlook reports) he now wants the Anglo American crooks who run away from Zambia to come and steal from us again. Remember, out of the the 17 million Zambians only HH and his controlled UPND club is the only one who opposed the new mineral tax regime? Fortunately, EAZ and many Zambians are ahead of this crook and are keeping him in check, hence all these accusations against President Lungu!
Denials, denials – ostriches burying their heads in the sand. Even in the midst of rags, you see splendid robes.
We already know what Greg Mills is saying. His delivery is how colonialists always spoke. Let us handle the PF and our economy with intellect and hard work. Listen not to the devil’s children, trying to steal Africa again. We need a better opposition, and president Lungu needs better ministers too. Zambia first.
Noriek Roubini,a Nobel Prize winning International Economist often refers to himself as a Global Nomad and says:” You can be sitting still surfing the internet and experience other worlds, ideas and societies.But I have found that there is nothing better than visiting a different country, even for three days…….You can’t only be a virtual Global Nomad.You have to see it, smell it and live it. You have to see people,travel and interact”.
This Dr. Greg Mills has never seen the inside of Zambia and busy puking nonsense. If it was Noriel Roubini giving the analysis, I would have given it credence.
Must read Noriel Roubini….
Those defending Anglo American were either in nappies when these guys attempted to stripe our mines and destroyed infrastructure during Masoka’s time or are suffering from amnesia. Anglo American are not your friends. They target volatile nations and work on divide and conquer mentality. They wanted our mines for free and wanted to paralyse government so that they could enter through the back doors. Thankfully late president Mwanawasa outsmarted them. These thugs should never be allowed back in Zambia full stop.