Congratulations to government for announcing austerity measures to help restore Zambia’s growing fiscal deficit.
The effective treatment of every problem first calls for admission that such a problem exists.
I do not think Zambians, with a few exceptions, are hellbent on seeking to destroy their own country. For a while now, the message has been that all talk about Zambia’s economy was premised on negative sentiment.
This has been the creation of a few people making a living out of seeking to blind government about the realities of the economy. The truth is that investors are rational beings who seek to make decisions based on data and will hardly sway away from an economic opportunity on account of rumours.
Even where such fake news exists, the truth usually emerges and it is this economic data released by government regularly (Ministry of Finance, Bank of Zambia, ZIPAR) which helps investors make financial decisions.
I should actually congratulate the Minister of Finance Margaret Margaret for having been very upfront and liberal on releasing economic data and regularly updating the nation on how we have performed. This has been the missing link for a while and it became the reason for speculative economic sentiment.
This fresh admission that the economy is in dire traits and that urgent action should be taken is another positive step towards restoring economic confidence in Zambia.
The only advice I give is to urge the Government to align the austerity measures towards a possible IMF programme.
As things stand today, it is very hard for government to manage its own austerity as it’s like asking a patient with a foot problem to amputate self. You can only cut that far and will stop when pain is unendurable.
The IMF program is very painful medicine and some of those countries that took it never fully recovered because they failed to complete the dosage or economic diagnosis was erroneous.
In the case of Zambia, our able economists in government have done pretty well understanding the problem and have somewhat applied the Zambia Plus Economic Stabilisation Programme but only in part.
An IMF programme does not only come with the discipline of implementation of austerity but a financial redemption package too, something we desperately need. There is also potential to unlock additional concessional packages as a result of IMF involvement.
In any case, the decision made by cabinet yesterday is closely watched by the IMF and it may just be that step that brings government and the IMF to the negotiation table.
By Chibamba Kanyama
Chibamba Kanyama I respect you but I dont think you have track record to be trusted.
Mind you I have a PhD, a Masters, Msc, MBA, FCCA and FCMA
Remind me who exactly you are in 4 words.
Thanks
BB2014,2016
ati “I have a Masters, Msc, MBA”! Do you even know the qualifications you hallucinate about?
In the pee-eff government there could be two or three people who understand what austerity is. Give them a few weeks and they will be back at their old ways. There is nothing to congratulate anyone about. People should have started resigning already.Ask Theresa May.
Austerity measures are a must to prevent a worster situation.
she has a PhD, a masters and a masters and a masters and a fellow of two accounting professions. She indeed is educated. This brings shivers down my spine?
Why write articles when you are a coward Chibamba Kanyama? Its not like the problem suddenly popped up this problem has been here for 5-6 years …if you want to sit on the fence apply for a role as an ambassador at Foreign ministry where you can sing praises and give motivational speeches all day long.
Chibamba Kanyama what is it exactly that you want from PF ? Announcing measures is not the same as fulfilling them.How many times has the PF government announced similar measures? I am surprised that you do not know that the people who do not mean well for this country are in PF.They have out of negligence,incompetence ,corruption and greed created these problems for Zambia and you have the audicity to accuse innocent people of being “hellbent of destroying their own country”.The problem with Zambia are it`s intellectuals,like Chibamba, who most times sacrifice professionalism for opportunism.
This ECL Govt has been advised for a long that they were traveling on a disastrous Economic Path but they refused to listen. What guarantee is there that this Admission of Failure is genuine and will lead to a change of Heart? Can a Leopard change its Spots? Does this ECL Govt have the Capacity and Political Will to change this Country’s Economic Direction? How can the Corruption Gurus eradicate Corruption? Can a Mosquito cure Malaria? Of course not. We doubt that this Professed Change of Heart is genuine. There are more questions than answers. Time will tell.
Wait, does the Zambian government or is it PF know what austerity measures are??? C’mon you need to call a spade a spade instead of being politically correct
How can a pompwe understand austeity ?It’s like telling telling a prostitute not to sleep with men for money.
Pronouncements are good but implementation. Remember the Zambia plus? No sooner had the Zambia plus was announced than someone bought a jet for $65m
Investors do not go by rumours ,they go by data and the reality of the economy on the ground.Those in government can also speak good that things are ok but data on our economy is saying otherwise.Let me tell you something most people can’t advice today because whoever advice’s the ministers is called an enemy of government in Zambia.Allow divergent views for our economy to grow.We are want Zambia to be economically sound and forcing us to say what is not true.we love Zambia and is only country we have.Look at the whites the way they are having forums calling people from all organisation to solve their problems with one thing in mind , their countries to be prosperous.
Expecting the PF to implement an economical resuscitation plan is like expecting a patient with a malignant cancer on the foot to amputate himself at the knee. Well put Chibamba. PF alone cannot do it. There approach is populist.
Mr Kanyama, how do we find ourselves in this situation in the first place?
Thank you and this is the honest opinion from someone who understands issues. Dr Lee H is not doing justice in advising Govt. the role of economist is to predict phenomenon not sign praises. We should be able to advise Govt the impact of the decisions they make- right or wrong. After all, every coin has two faces
Mr Kanyama for once try to call a spade a spade. As someone rightly pointed out, being “politically correct.” There’s nothing to congratulate this Government about unless and until they actually implement these austerity measures. By the way, these pronouncements are not novel at all, as they were announced sometime ago. There are no grey areas in this situation. It’s either you are with the people of Zambia or the PF Government…. Period.
Which people of Zambia are you talking about? Talk about yourself and not the people of Zambia.
@ Moses P. Sichula
He is talking about people of Zambia with functional brain, not about brain-washed 1meciles like yourself
They announce austerity measures but never stick to them. This was done the last time too. I see deja vu.
Guys, never trust these Zambian economists who really looking at things on the ground must be in the social studies books by now – history. This country has suffered for too long, the only time Zambians really enjoyed the economy as the economy being sound was during the early Kaunda days, even in Mwanawasa’s time, we were still tightening our belts for HIPIC completion point. Most of these economists have been advising government and corporates but we are not growing. Please note that the current economists we have are like our current national football team players who will not qualify for anything. Please ignore them please
These Austerity measures were announced a long time ago but the only Austerity measure that has been achieved so far is the purchase of the Presidential jet!!!!!!
Don’t play with Play Boys!
Waiting for Austerities Part 2 … Kikikiki
Austerity comes from the word AUSTERE which means severe or strict. So what it means here is that the PF has prescribed for themselves severe or strict measures to make the economy recover. Can we trust them to stick to their own severe measures especially when you look at how we got to where we are – in deep sh***t? Why did it have to take an emergency cabinet meeting for PF to see that the economy was in a very dark abyss? Remember all along they have been saying all is well and suddenly they have u turned. KK used to say “I see a light at the end of the tunnel” but with PF due to load shading the light went off long time ago.
These days austerity usually means hard on the poor while soft on the rich.
The PF can not resolve the economic problems they have created because austerity is not in their vocabulary, nature and character. Their true nature and character lies in corruption,devouring and plunder which is the reason why this country is the situation it is today.Character can not be counterfeited.PF can not change.Only a different political arrangement can resolve the current economic problems and not the PF.It is the PF`s politics that are fundamentally wrong.
I said quarantine the boss in plot one so that he does not give directives that make a mockery of his own cabinet’s austerity measures. There is enough to entertain him in state house, some monkeys, some antelopes, and oh the latest fad in town: fish ponds… sorry nearly forgot. …. kikikikikiki
PF kuya Bebele, we Thankyou in advance for some of the good things you’ve done but your time is up
Comment:where is DR habaazoka? what is he saying about this
Dr. is waiting for instruction before crapping as usual
The invitation of IMF into the operating room will kill the patient; please don’t invite them.
I think Kanyama is being way too simplistic here, Mutati tried that same austerity “medicine” to cure this moribund economy but he was fired as Lungu was still keen to buy his jet. It’s was just a matter of time before the debt thresholds was breached and the economy tanked. The PF knew this would happen sooner and were being economical with the truth, now that you are swamped because of them, it’s stupid of you to praise them for coming out this belated!
This parasitic non-comp bootlicker beggar congratulate the government for destroying the economy?