Friday, March 29, 2024

Government aware of projected economic slow down – Mwanakatwe

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Minister of Finance Margaret Mwanakatwe
Minister of Finance Margaret Mwanakatwe

Government says it has taken note of the projected slowdown in economic growth for 2019, at the back of the drought experienced in some parts of the country during the past agricultural season, and the higher projected inflation.

Finance Minister Margaret Mwanakatwe says government will therefore, put in place measures to redress the impact of the drought on growth.

Mrs. Mwanakatwe said Government and the International Monetary Fund Mission that was in Zambia from 16th to 30th April 2019 in line with Article 5 of the IMF Governing laws agreed during the consultations with other stakeholders on a number of areas that require an immediate policy response.

She said these measures were with respect to frontloading of fiscal adjustment, reducing debt accumulation, addressing the challenge of domestic arrears, and enhancing external buffers.

Mrs. Mwanakatwe said it was also agreed that there is need to protect expenditure towards the social sectors which is the surest way to re-energize efforts aimed at improving the livelihoods of the Zambian people.

She said during the meetings, Government provided all the necessary data required for the assessment, a process that culminated in the Government and the IMF reaching agreement on data accuracy.

Mrs. Mwanakatwe said the data included the fiscal deficit at 7.5 percent of GDP for 2018, the external debt stock at 10.05 billion US dollars, domestic debt at K58 billion, guarantees at 1.2 billion US dollars, and domestic arrears at K15.6 billion with the total debt as a percentage of GDP for 2018 standing at 73 percent.

She said to ensure that the top leadership is on board with the measures discussed and agreed with the IMF, she will be taking the measures to Cabinet for consideration and endorsement.

Mrs. Mwanakatwe said the Bank of Zambia through use of various monetary policy instruments is also geared to ensure that inflation is maintained within the set band of 6-8 percent.

She said measures to keep the deficit within the 2019 budget target, as well as the medium term, will be undertaken as part of the adjustment measures agreed with the IMF. In this regard, control measures around debt accumulation and halting arrears build up will be implemented expeditiously.

Mrs. Mwanakatwe said all these measures will ensure a quick return to a path of sustainable growth, fiscal consolidation, debt sustainability and build-up of external reserves.

She said government is aware of the challenges facing the Zambian economy and the measures are a key first step towards undertaking corrective measures and necessary measures will be undertaken to redeem the situation.

The International Monetary Fund staff team was led by Ms. Mary Goodman and the team will prepare a report of the Article IV Consultation which will be discussed by the IMF’s Executive Board in the coming months.

34 COMMENTS

    • How can you have 70+% of your salary in Debt with no austerity measures but still you want to borrow more and spend more on luxury vehicles ??
      Maggie, how does that work?

    • Maggie is pusycat of Rupiah Banda, the corrupt swindler ably followed by Self-confessed visionless Zombie in statehouse.

      Lungu has made Zambia a living hell.

    • This is a non starter no investor or IMF can take a woman who changes her tunes at the time she changes her hideous weaves or wigs…she is lucky she has a clueless boss who is more interested in petty challengers than the economy…I mean the dull man is for ever issuing orders to spend recklessly on things that are not in the budget.

    • No mention of avoiding the acquisition of new debt. Yet this was the main highlight of the IMF report.

      The curvy drunkard then goes on to blame drought for inflation and reduced growth projections.

      These people are not serious.

    • This is the woman who stated that IMF meeting in Washington was a success…its all lies only a fooool can believe these people are you telling us you have never met as cabinet since you came back!

  1. Your excellency, take back Mutati to Finance and do not interfere in his work. There is no shame in correcting that which is wrong. Governance should be about doing that which is correct and not being preoccupied with winning elections. Lets all have Zambia before our political parties.

    • Mwelwa its you who should be ashamed for mentioning Mutati …do you not know that Mutati and Maggie are both bean counters? Even the language she uses when she is talking about economic policy is basic for even me who is not an economist. Its like asking an auto-mechanic like Freedom Sikazwe to fix a Boeing Jet…

  2. I attended one function in Johannesburg last year addressed by this girl and the lack of macro economic substance in her verbature was to say the least insulting. She also clearly did not prepare for the function as she seemingly appeared to be nursing a nasty hangover from the previous night’s binge. It was most shameful to all Zambians that day in that Sandton Convention Centre, I do not envy Mwamba who had to persistently chip in to rescue this stupid cow.

    • The problem with docile Zambians is that when they hear a black person with some accent they assume that person is very smart and intelligent…come to England you will see drunkards talking rubbish, if you give that person a suit and a tie they would roll out a red carpet for him at ZDA thinking he is a serious investor!!

  3. Increasing debt and accumulating arrears was the error in your policy, but now we hope the earwax has gone and you will no longer be deaf to the alarm raised by citizens.

    AND PLEASE do not sell state assets for a quick temporary relief. A little austerity is a good thing.

  4. 73% of GDP ratio is our debt stock hw many times did u pipo tell us that we are with in manageable levels 45% ratio so all along the really figures were being hidden wen a pipo dance themselves deaf this the result na kwela bus zinalake Double deka alungu aikwela kale alungu akwela kale lalalaal lala dunna reverse

  5. “….She said these measures were with respect to frontloading of fiscal adjustment, reducing debt accumulation, addressing the challenge of domestic arrears, and enhancing external buffers….”

    This is when you are finding out ??? Sad that it had to take the imf to point this out to you

    PF and their supporters better pray for no more drought or any Down turn in the global economy…….

    expect an increase in fuel prices any time soon, the Iran effect.

  6. From when lungu accepted to continue paying $1 million/ km for roads I knew Zambia is doomed , the 42/42 confirmed this….

    The PF so called technocrats convinced lungu that his GRZ only had to spend money on silly roads and foreigners will come and do the rest like create jobs and build factories.

    And the one with no vision was just dancing and enjoying travelling the globe ,

    There will be no major investors to create manufacturing jobs…..

  7. This woman is a total joke and I don’t know why she’s finance minister. They have made Zambia a living hell

  8. 73% OF YOUR SALARY AS DEBT HMM..YABIJA MAKANI WE ARE IN END TIMES OF GOVERNMENT LETS TRY HH THE ECONOMIST BUSINESSMAN TO TRY RULE US IN 2021 , BUT WE JUST GIVE HIM KA PROBATION OF 3 MONTHS IF STATE HOUSE WILL BE FULL OF FLIES DUE TO MABISI WILL IMPEACH HIM

  9. When did GRZ become aware? And what have you done about it?
    Please cancel the PF National Dialogue Forum! It’s the Economy we need to Dialogue on as a matter of urgency! How did PF do a Donchi Kubeba on the nation only to wake up with a Dent to GDP ratio approaching 75%? How do you borrow up to 75% of your net income? This is Donchi Kubeba gone wrong! PF is hiding a lot from the public forgetting that there is no secret under the sun!

  10. @ Jay Jay one would wish every African could have your assertion well cemented in their skulls as a pointer to one of the tragedies of the times

  11. Imwe lets get rid of this government otherwise we’ll regret. Zambians we take too long to react that is the problem.

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