Action Aid says the continued intervention by the Bank of Zambia to stabilize the economy is an indication of a waning economy.
“It is worth noting that in long time now, Bank of Zambia has announced a quarterly back to back increment in the monetary policy rate to curb inflation suggesting that monetary policy interventions are no longer helping our waning economy, hence, the need to go beyond the monetary policy,” says Action Aid Zambia Country Director Nalucha Ziba.
“Right now, we can conclude that Bank of Zambia has done what every central bank would do to respond to our current economic woes. It is high time we addressed the causes of our waning economy and not the symptom (Inflation),” Mrs Ziba said.
“It is clear that our skyrocketing inflation is cost induced due to among other reasons, the continued depreciation of Kwacha, Zambia being an import dependent country, the continued depreciation of the Zambian Kwacha means that we are paying more for the same imported goods earlier imported, henceforth, higher prices.”
She also mentioned the the recent fuel pump price increase coupled with the looming of more than 100% electricity tariff increment as some of the factors that have led to the increase in the cost of goods and services thereby pushing up inflation.
“Declining productivity; our GDP is expected to grow at 2%, the lowest ever in a decade; this is even worsening with current erratic power supply (we experience zero or negative economic growth), we are experiencing the worst ever load shading of possible, which is currently at twenty (20) hours in a day.”
Mrs Ziba said there has been enough of the monetary intervention adding that now it is time for a fiscal intervention.
“Public debt is our biggest problem now. Unsustainable debt levels without a clear debt management strategy is a thorn in the already struggling economy and deterrence to the investor confidence.”
“Additionally, high debt service demand has great bearing on our exchange rate, henceforth, slowing down in external debt contraction as well as postponing or cancelling of some pipeline loans to sustain public debt levels as announced by the Ministry of Finance during his 2020 budget speech is way to for now.”
“However, it is sad to note that contrarily to the emphasis on minimizing debt contraction government recently announced plans to borrow USD 2 billion for the construction of the Chipata Serenje Rail line. Additionally, Government must be involved and take responsibility by actualizing austerity measures.”
She added, “Though there has been too much emphasis on austerity measures, it would be good to know how much has been saved as a result of implementing such measures.”
Mrs Ziba said government also needs to prioritize expenditure on investments with high and immediate returns to spur economic growth.
“Among the expenditures to be prioritized is an expenditure towards the energy sector than road infrastructure.”
Action Aid, did you know that Lungu lives in his own little bubble completely detached from the sh!t economy his incompetence has caused? Chap is on his way to galavant in Abu Dhabi. That is how much he does NOT care about what the ordinary Zambian is going through
But he is doing everything possible – by going on a 2 day “working visit” to Abu Babi.
This is a working government, they are working for themselves, not you
Nalucha is Mrs??? Is she married, WHY?? Consider divorce.
Margaret Mwanakatwe failed to perform because of marriage.
Mulenga Kampamba also made huge blunder, went back to try marriage again, and she went down into under performing.
Dora and Namugala are single!!
@ Dudelove
Exactly….how can Lungu feel the harsh realities of Zambia’s economy when he globetrotts in a private Jet….as we talking he is enjoying life in Dubai and looking for companies to print rigged ballot papers for 2021 elections…These PF bandits have so much money you can see from how Kaizer Zulu is behaving and has grown big headed…
“Let me also VOCAPO so that the International Community can fund our little KANTEMBA,” NGOs INCOMPOS.
Govt this govt that. Inga Imwe, muzachitako chani?
All you experts told us govt has no business doing business, now you’re saying they should address the economy. How?
They’ve opened up opportunities by developing infrastructure : Roads, Airports, Schools, Hospitals, Markets, Stadia, even New Prisons.
It’s now upto you private citizens to see the opportunities and develop businesses so you can contribute to the economy’s liquidity and pay more tax so that govt can borrow less. By so doing you’re creating Jobs for your dependants instead of blaming govt for lack of Jobs.
Foreigners are coming here and setting up businesses which are flourishing. Are they govt?
Imwe, not even ka supermarket, just complaining. If foreign companies are given contracts you complain, but you have no…
She is wearing red for arson and fires.
They can’t manage to fix the economy because it’s false majeure (act of God). Even the heavy borrowing of billions of dollars of which much of it went to PF tender preneurs is an act of God.
The ruling PF and Habazoka insist that Zambia is not in a crisis.
That is the biggest problem Zambia is facing….Poor Governance.
There is only one way to deal with this cancer.
Scatter teeth is waiting on the miracles you prayed for on that national prayer day, for the moment he will deliver some drugs for his drug dealer friends and do some black Friday shopping using for tax money and when he comes back you can go dance dununa reverse to receive him, what a toser… the ka worst president on earth…. as dull as they come
Prof. Hansoni has written the UN on his University Letterhead HAGAIN saying our god is UNELECTABLE!
It’s about time to ask questions
Chakolwa has no clue the damage he has caused! That’s the 1st problem. 2nd problem is that Zambians think someone else will remove chakolwa ontheir behalf!
If there is anything this useless lot called PF have not lacked it is advice.They have been receiving advice from inception till date which they have arrogantly ignored,especially when it comes from the opposition.Meanwhile as we sink deeper into this mess they have created there has been no shortage of vuvuzelas for Lungu and this is only equalled by the sheer ineptitude of Mr Lungu and his friends.Madam your advice will be ignored as has been the case with past attempts to offer guidance to these people,God help them.The people who put Lungu in this office have literally messed him up,for try as he may the man is just completely incompetent…
Nalucha, just come out in open that you are a upnd cadre…! Are you saying government is doing nothing to arrest what you’re calling failing economy? Don’t allow your upnd negative thinking to overshadow your analysis power..!
Spot on, I was about to comment on that. The language is exactly that of upnd. “skyrocketing, waning, failing,…” are upnd dramatised words to excite their gullible fanatics. And so, like your colleague Shishuwa, you will not be taken seriously as you are a upnd cadre!!!
Look at these two rats…..
If 100% hike on electricity is not sky rocketing , what is , 10000% ?
If a decline to 2% GDP from a RBs 7 % is not failing what is ? -ve figures ??
OPPOSITION All People’s Congress Party president Nason Msoni says President Edgar Lungu is “damaged goods” and that it is laughable to insinuate that the opposition could be afraid of such a product.
Dont flog a dying horse. It has no capacity
Just look at lungus business life before president…….he drank everything and could not even afford nomination fees and you think he can run an economy of a country ???
Oh here we go……….it’s elections rearing up. The same suspects are popping up to state the obvious….inflation. GDP down etc. All of Doomsday decanted all over the place.
We are in an economic slow down but the problem is not the govt but the citizens of Zambia. Dependant on govt performance.
What about the Private Sector? Why does she not address what use they have been to Zambia. The most unproductive private sector in the world. You can throw all the money at them but the economy is still govt dependant.
PF has worked hard to create an environment to encourage economic growth. They have made Zambia an attractive investors destination. Infrastructure is in place, people are enjoying better lives than ever before since the 70’s. Shopping malls with all sorts available to citizens. Clean roads, new housing for all and those in service. Minor discomforts are occuring due to economic slow down. Every 10 years we will have a downward blip in the graph chart. But a change of govt to UPND would be a disaster as they usher in a tribal reorganisation instead of economic solution….. because the economy can’t be fixed until favourable global conditions return. Every country is facing up to high unemployment and a slower economy. Of course the govts doing it’s best!
What a load of cra.p from a drunk PF rat…….
Ati minor discomforts ?
People have no jobs, people with jobs are sometimes not paid paid
You want the private sector to do everything for you while all you do is loot and get Zambia deeper into debt ??
Ati PF have built roads ? Even a mental patient with access to the $17 billion PF have had can do that and more…..don’t flatter yourselves on a disaster job you have done.
Mostly, you are just plain ignorant @Spaka with all the negative nonsense you spout. There is a global slow down worldwide. What rock do you live under? If you don’t believe me then try the following from The Guardian Newspaper;
‘Britain is facing the highest risk of a recession since the financial crisis and needs urgent plans to combat the next downturn, according to an alarming assessment of the nation’s economic health.
Preparations need to be made to reduce the impact, the study by the Resolution Foundation thinktank warns. It states that both uncertainty around Brexit and the global economic slowdown have led to the highest recession risk since 2007.’
“Policy-makers can’t prevent recessions from happening, but they can limit their damage with the right policy response. ”
Do you get it @Spaka? Nothing can prevent the current climate NOT EVEN HH from his Mental Health Ward at UPND Central!
it appears stopped working and just waiting for HH to feed them to take their children to school
in this world hope can not be placed on politicians, and expect life to improve never
HH will not bring unga at your tables ,stop this self slavery mindset
the govt levels the playing field for people to do business not set traps to milk the already struggling population and embezzle funds ment for countrys development and you say private sector idio’s.how increases fuel and electricity which are fuels for development mmm?
No amount of monetary policy intervention could ever curb the current inflationary exuberance that currently bedevils the Zambian economy. The Euro bond interest rates and principle repayments have kicked in, that’s why the economy is dry of forex to meet the cost of imports. This is what is fueling inflation and price escalations! Simple, even Kanjangu Sansakuwa could tell you that.
“Policy-makers can’t prevent recessions from happening, but they can limit their damage with the right policy response.
NOT EVEN HH CAN DO BETTER.
Dollar inching towards K15 yet the head of state has gone for s shopping spree to the middle east presumably for his eswatini mansion