HH speaking during a radio programme on SUN FM
HH speaking during a radio programme on SUN FM

 

The Zambia Forestry and Forest Industries Company (ZAFFICO) has refuted reports alleging that the Attorney General had suggested that the Industrial Development Corporation (IDC) illegally owns
Zambia will soon default on its debt repayments-HH

Opposition leader Hakainde Hichilema has predicted that Zambia will soon default on its debt repayments.

And Mr Hichilema has advised Finance Minister Ngandu Magande to resign “in order to save face.”

In a Facebook post, Mr Hichilema said he is very concerned about the state of the Zambian economy.

“ I am very concerned. Ordinarily I would say WE should be concerned. Bwalya Ng’andu is in trouble. He must just resign to save his face,” he charged.

He added, “The graphs show you how debt payments are going up (Figure 1) while PF Budget remains static in US$ terms (Figure 2). This country will default on debt very soon.”

“How then did Bwalya Ng’andu inherit such a poisoned chalice?” he asked.

“Here is how; from the US$750 million Eurobond, US$255 was given to ZESCO, for a project that takes 7 years to complete, and we still have load shedding. Another US$120 million to Zambia Railways, a sinking company and the Auditor General’s report said, this money could not be accounted for and it is making losses. Then a $20 million was handed to PF cadres through Development Bank of Zambia (DBZ) to buy buses. The rest, they claim, was put in roads and other public infrastructure, but we know contractors have not been paid.”

He said, “US$395 million down the drain and we expect Bwalya Ng’andu to have money in the economy.”

Mr Hichilema said the PF is a dead institution and that it is time they listened and called for an early election.

“They have failed.”

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83 COMMENTS

    • While I really don’t want zambia to fail because my family and I will be affected for years to come, I am worried that if we keep doing what we are doing, we shall soon hit a wall. This is a fact. We changed course in 1991, and it was for the good of the country. We can change course now too, and it will be for the good of the country as well.

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    • There is nothing to argue about. We are in trouble. Either we arrest the situation or we just nose dive. The biggest problem is that the gate keeper is clueless

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    • 2021 looks like paradise in Zambia going by 7th National Development plan. H² is worried sick that Zambia will rise above mediocre accusations and a wish for poverty from the dead camp.
      Tribal, homos3x, privatiser, tax evader, and tree mansion h² wants to steal the presidency through a call for an early election.
      Slow down h² ECL is working round the clock to fix this economy. Try 2026 when ECL will be out’a picture.
      Ma election apa no, yakafifi iyo. No wonder you are busy organizing tuma protests ayi? You are a thief for sure. Tekanya mambala iwe.

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    • Bwalya Ng’andu na Ngande Magande are two different individuals imwe ba lt.
      And we don’t have a fellow named Ngandu Magande holding a Ministry of Finance job currently.

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    • HH is a paid agent, nay a stooge of the boers. If ever he becomes a minister he will mortgage Zambia. Crooked HH

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    • THEFT in CHIEF himself yapping like Ha little boy he is. PRIVATISATION THIEF and PANAMA tax evading chief, (sorry), thief.

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  1. Yah yah early elections. Kikikikikikik. Badala you like dreaming alot. The truth is most Zambians don’t want you.

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    • no, the contrary most Zambians want him. in the last election, Lungu stole just enough votes to narrowly win. This time around the economic situation will not allow Lungu to steal votes. he is going.

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  2. How could any one wish one’s country to default so that he can be voters into power ?. Default is disaster for the citizens, whether rich or poor. This man is malevelant, even on his face he looks like one, not for to be a leader.

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    • So in your foolishness you would rather deny reality and pretend everything is ok?
      Are you under some sort of demonic spell?

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    • Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms.TAH.

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    • I ask again. Why would a normal human being want to deny reality and pretend all is well? Don’t make sense at all,,, unless you are under some sort of demonic spell. My brother thats not a sustainable coping strategy

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    • Every one can see,a small 20 million plus dollars for electricity has sent the local currency reeling,and you still have confidence in Mr Birdman Lungu, Zambians wake up and salvage what is left of our dear nation.

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    • In most developed communities, forecasting the future, and working towards that future, is more or less common sense. While in most African setup, ‘forecasting’ the future is looked upon as witchcraft, or totally ignored. No wander most of Africa is where it is today, economically speaking.
      HH is not wishing for default, he has been, for long time, advising the Govt on how to avoid a debt default. If PF does not listen, as they have done previously, certainly default will be knocking at the country doors, very soon – And that is a certainty!

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    • What do you expect from a privatization thief?
      If he had not stolen years back through brutal kickbacks, Zambia would be benefiting from its assets.
      Prophet of doom now a major shareholder in the mines he put in foreign private hands is eyeing early elections. Great! Dream on man.

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    • Let’s be realistic and not call names. We are in trouble and we need to work together as a country to correct the situation. I know alot of people like thorn in the flesh whatever your real name is,you’re a slow learners and it will take you up to the drop of the country to realise how things have gone bad.

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  3. While I really don’t want zambia to fail because my family and I will be affected for years to come, I am worried that if we keep doing what we are doing, we shall soon hit a wall. This is a fact. We changed course in 1991, and it was for the good of the country. We can change course now too, and it will be for the good of the country as well.

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  4. We don’t need useless opposition politics. They just bring division, tribalism and insolence. What we need in one party participatory democracy with clear succession plans, strong governance systems and zero tolerance to corruption. Imagine everyone in the country was contributing positively towards solutions the country is facing. China will not be where it is today if it followed this useless model we embraced in 1991.

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  5. We are Christians in Zambia, we don’t deal with Crystal ball gazers, nor fortune tellers.

    But HH ought to be putting all this in a context of a global slow down not politicking. All around the world Central Banks are quaking with fear.

    Fact is there is a lot of debt by govts since 2008 crash. The world is facing a new recession. As an economist HH knows fully well that we are due an economic blip since it been about 10 years and every 20 years there economy often needs resetting. High employment, low demand, production, fierce competition, trade wars and current Brexit resets are in play.

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    • ‘about 10 years and every 10 years there economy often needs resetting……’

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    • Economic forecasting is the process of making predictions about the economy. Forecasts can be carried out at a high level of aggregation—for example for GDP, inflation, unemployment or the fiscal deficit—or at a more disaggregated level, for specific sectors of the economy or even specific firms.

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    • Nonsense. Zambia’s issues are due to overextended debt. That is not a global phenomenon. It’s a direct result of poor governance and lack of proper budget planning.

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    • Quote 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.’

      ZAMBIANS DONT BE FOOLED. The last thing we need is to change government, there is nothing HH can do to stop the global downturn. A change would lead to political turmoil. We need to work together to help our govt.

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  6. “Mr Hichilema said the PF is a dead institution and that it is time they listened and called for an early election. “They have failed.””

    This is not just the failure of the PF. This is also the failure of the MMD, and the UPND. This is the failure of neoliberal economic policies, when it comes to working for ordinary citizens.

    Almost a decade ago I blogged about the PF’s refusal to tax the mines, and instead take on Eurobond debt at interest, which was daylight robbery. The phenomenon of Transfer Pricing allows transnational corporations to never declare a taxable profit, and is a form of fraud.

    What is needed is a collection of regional leaders who can standup to the IMF. SADC produces most or much of the world’s diamonds, gold and copper. That’s leverage.

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    • The deads are the upndead. They suffered from asphyxiation and passed on when he came from nowhere and usurped the party’s power in a disgraceful tribal drama of the millennium.

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  7. With rampant corruption in the government of edgar lungu, your observation h2 is and could turn out to be correct.

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  8. Definitely they will default because now they will need K15 and climbing to pay back for every dollar they borrowed including interest whilst they borrowed at K6.

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  9. Zambia has a sustainable plan on how it will repay its sovereign debts and meet its creditors obligations at the same time also maintain a healthy steady growth amidst the slow economic outlooks as seen from the discussions and projections availed to the IMF in its recent visitation to Zambia There are sustainable plans to deal with the boom and cycles presented by the global economy as reflected in those graphs It’s not as hopeless as painted above
    Zambia is not as worse off as some countries like brazil SA or $ 100 Billion Argentina which is though under distress has a plan on how to repay and grow the economy They have not thrown in a towel and wished for…

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  10. default
    There are real options in Zambia’s debt outlook One of it is to sit and discuss with Investors and creditors to extend the maturity profile of Zambia’s debt There is more clarity on what the pathway will be and there is no panic and concern amongst the investing communities The process of organising creditors is clear and known unlike other countries they do not have categories and speculations on default are there more pronounced unlike Zambia they do not have a sustainable plan on how to restructure repay and address the debt maturities
    The Government should focus on micro stability to improve the perception and outlooks and possible prepay those debts deemed to be…

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  11. He thinks he is the most intelligent person in Zambia and his UPND sycophants and zealots and enemies of progress who are into group think mentality believe him.

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  12. defaulted to ensure favourable and improved credit ratings that would reduce the cost of capital and market access and please ignore the 2 graphs above they are technically misleading and support the Finance minister to be focused steady and navigate these stressful but manageable environments

    Economies and Finance are not cast in a stone and the most innovative Finance Minister like Chritine Largade will emerge even in this less than other economies tototal or gross Zambian debt

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  13. PF should be careful with years that end with a 1.
    Zambians always change government during these years.
    1991 – changed from UNIP to MMD
    2011 – MMD to PF
    2021 – PF to X
    Find X
    HINT to Zambian voters: X must understand Economics and must have a track record of success in business. X must be an employer with minimum of 500 direct employees! X should not be a recycled junk! Find X and you will have a great Economy again. Ignore X at your own risk!

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    • Like in football, you’ve gone permutations
      2021 is fully booked. It is sticky.
      You missed 2001 we were still stuck with double M D.

      Sorry try 2031.

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  14. You do not need to be an economist or a politician to tell our beautiful county is falling into a very serious economic crises following the the current power crisis and consequent reduction in productivity in all economic sectors; which is going to affect its ability to service any debts. I doubt if we have any genius who can easily correct the situation. We doubt if the same gentleman blaming his friends has the capacity and even the calibre to manage the situation. Going by the quality of speeches and ideas he propagates, he still has a long way to inspire anyone to trust him to be an economic manager of a country. We have never heard him explain HOW he is going to solve the same problems apart from the basics that we know.

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    • The problem with lungu is mismangment.
      Lungu is a corrupt thug ,same caliber as his political advisor, KZ.

      If the country is managed according to the rule of law, sticking to austerity and his once concentrating on manufacturing instead of roads , things will fall in place.

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    • Could it be because you look at him through tribal lenses?
      I have never heard ba ECL propounding Economic matters the way Double H does. He is so logical and clear in his assessments the way Magande was. The trouble with some Zambians is they are afraid he will seal all thieving loopholes on which they have been surviving! The other problem is elections in Zambia still take the form of a Social census – wako ni wako! Never issue based! But the choice is yours! Double H loses nothing should you reject him 10 more times!

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  15. Investors prefer Bond because of their Income Potential and the fact that their little or no contagion between Bond markets in Brazil and Argentine woes except for nearer SA and DRC,the Zambian Euro Bonds restructured or New shall be forever be Investments Grade but of course we need to manage the Duration and “Convexities” by managing our economies to register growth rates and repay or prepay those restructured USD 1O Billion or USD 2 Billion on Country Zambia is not a lot of Debt given the Global sovereign debt outlooks It can be managed and restructured to repay and perform the economy amidist those perceived outlooks

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  16. Good job Kakoma Kanganja.
    Stay alert. This call from h² just shows how desperate he is. Behind those somewhat “innocent” planned protests was h² ugly face printed all over it with his little corrupt dented ego.
    Zambia please watch this fellow’s steps. Remind him and his fellow goons that a tenure after an election is 5 solid years as per law.
    The tribadist must understand that his call for early elections is misplaced and extremely premature. If he got balls, 2021 is just around the corner.

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  17. Sir on the contrary I would like to disagree with you. Asking someone to resign is not the solution to the problem you forsee but advising him on what must be done is what I can call collaboration. Ngandu knew what he was about to face before accepting the appointment and it would be wise that he widely consults on what must be done so that Zambia can go back to prosperous ways. Resigning at the moment the country is looking for people to step up and address problems the nation is facing is a cowardly move. Though we align ourselves with different political parties with different views and beliefs, though we hail from different cultures and parts in Zambia, though our traditions differ one from another and personal preferences we still have one thing comon to us all and that is ONE ZAMBIA…

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    • Continued: let peace, love, unity and productive hardwork lead the way to our nation’s prosperity and development.

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  18. “rather Bonds and their little or no contagion ” ( look at 10 yrs Germany and US Bonds and see the markets ) and contrast against those graphs above and see why other investors not so risk averse will arbitrage on Zambian restructured bonds because of the better income and capital gains potential So its not true that Zambia can default but must manage the costs of restructure or prepay with new securities less cheaper

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  19. Hahahaha. HH this is no time to ask people to resign but to ask them to work hard and put in extra effort. You have been advocating for the government to cut spending and put austerity measures in place but yet you are also calling for early polls that are costly. Don’t you think that the amount that will be spent on new elections would do well if injected in our already frail economy?. Instead of calling for new elections now which are not that far away anyway you’d do well to say “ok guys for the sake of our country come let us reason together and see a way forward or out of this mess” a frail economy hinging on a seemingly divided country will only get worse. And HH please fire your advisors and media team or public relations, they seem obsolete and spent, as a person who aspires…

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    • As a person who aspires to lead this country you don’t need to come out always like you did today. Get a team that will fix your image a team abreast with the changing dynamics in a fast changing world.

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  20. Ka HH is like a man who lives the woman but the woman does it like him, so what he does is to talk ill of the woman’s boyfriend so that he can get the woman. Twrnt years doing the same thing but expecting different results. Hakainde musankwa WA PA Zed. If HH had anything to offer Zambians they would have long seen it the rest is history.

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  21. Fuel price, mealie meal, unemployed teachers, nurses, presidential jet, loadshedding, fire tenders, ambulances, malawi maize scandal, zesco tarrifs, chilenje market,corruption, thieving, dollar rate: And someone still supports this. l wonder

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  22. HH your friend Musi resigned from the DA Imwe ATI Bwa. Ni WA muyaya Monga ni former UNIP? HH imagine how much MO ey you would have made had you concentrated on growing your ill gotten loot. But I steady you have chosen to spend other people’s Money.

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  23. WHO SAID MOST ZAMBIANS WANT HICHILEMA! ITS ONLY TONGAS WHO WANT HICHILEMA. THERE WAS NO ELECTION THAT WAS STOLEN. YOUR HICHILEMA IN 2016 LOST IN LUSAKA, EASTERN, MUCHINGA, NORTHERN, COPPERBELT, LUAPULA PROVINCES AND NORTHERN PARTS OF CENTRAL PROVINCE! SO WHERE WAS HIS ELECTION STOLEN? IN FACT ITS HIM WHO STOLE IN SOUTHERN PROVINCE THROUGH TRANSPORTING UNDER AGE TONGAS TO REGISTER AS VOTERS AND LATER VOTE! THATS THE PROBLEM WITH TONGAS, UBUFI AND CROOKEDNESS! HOW DO YOU CLAIM VOTES WERE STOLEN WHEN YOUR CROOKED HH COMPLETELY LOST! THE TRUTH IS THAT HES GOING TO LOSE AGAIN, BECAUSE MOST ZAMBIANS DON’T WANT HIM DUE TO TRIBALISM! IF HH BECAME PRESIDENT TONGA WOULD BE SPOKEN IN OFFICES! IF YOU CANT SPEAK TONGA YOU WILL NOT BE WELCOME IN OFFICES! THAT’S HOW BAD TONGAS ARE! THE WHOLE…

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    • Say No To Racism.

      You even have some Dutch courage to call yourself mandanda after watching the Ajax game, the same dutch courage that makes you feel like Zambia is your grandfather’s farm. Out of all economic debate the only thing your macaque brain has gathered is tribe, what a load of tosh from this ape from lowest of the gene cesspool.

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    • Say No To Racism.

      You even have some Dutch courage to call yourself mandanda after watching the Ajax game, the same dutch courage that makes you feel like Zambia is your grandfather’s farm. Out of all economic debate the only thing your macaque brain has gathered is tribe, what a load of tosh from this ape from lowest of the gene cesspool.

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    • Say No To Racism.

      You even have some Dutch courage to call yourself mandanda after watching the Ajax game, the same dutch courage that makes you feel like Zambia is your grandfather’s farm. Out of all economic debate the only thing your macaque brain has gathered is tribe, what a load of tosh from this ape from lowest of the gene cesspool.

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    • Say No To Racism.

      You even have some Dutch courage to call yourself mandanda after watching the Ajax game, the same dutch courage that makes you feel like Zambia is your grandfather’s farm. Out of all economic debate the only thing your macaque brain has gathered is tribe, what a load of tosh from this ape from lowest of the gene cesspool.

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    • Say No To Racism.

      You even have some Dutch courage to call yourself mandanda after watching the Ajax game, the same dutch courage that makes you feel like Zambia is your grandfather’s farm. Out of all economic debate the only thing your macaque brain has gathered is tribe, what a load of tosh from this ape from lowest of the gene cesspool.

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    • Mandanda you are quite dull mwe, please stop posting your rubbish on Social media because if your children discover what you post they will be teased and bullied at school for having such a dull species like you.

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  24. HICHILEMA IS VERY DULL WHY ASK BWALYA NG’ANDU TO RESIGN. WHERE HAS HE FAILED? HES JUST BEEN IN OFFICE FOR FOUR MONTHS NOW! EVEN A HUMAN BEING IS NOT CONCEIVED AND BORN IN FOUR MONTHS! EBA NGATEKA ICHALO ABA? HES TOO DULL! HE LACKS STRATEGIES! JUST BE PATIENT BWALYA NG’ANDU WILL FIX THE ECONOMY! BY THE WAY REMEMBER TO EDIT YOUR STORIES, HES NOT NG’ANDU MAGANDE, HES BWALYA NG’ANDU!

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    • Yet he wants to be president of the same country with its alleged beleaguered economy.
      H² applied double standards here.
      Or maybe he too would resign seeing that he claims the economy is gone bad.

      No h² when things are supposedly bad, as a man, you stand up to fix it.

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  25. He asked the finance minister to resign to ‘save his face’ – not that it will be the solution. The inevitable is nigh, so no need to pretend you can resolve problems created by other non-listening PF dunderhead politicians.

    ‘Those with ears should listen and those with eyes should see’. But I know we have enough ostriches on this blog who choose to bury their proverbial heads in the sand because intermittently, their bellies are nourished from the crumbs of ECL’s banquet table. Soon, even those will be extinguished and there will be no one to stand for them.

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  26. There is no provision in the amended Constitution for early elections. They now take place on set dates. Are you asking PF to defy the Constitution? I hope not.

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  27. Its a wrong commentary and a leader and an aspiring one should empathize and offer solutions to problems facing he country and people will build confidence and must desist from being drown in the mud

    He is supposed to be forward looking on the Zambian Financial Conditions Indicators and see growth prospects (GDP) to say 2030 and beyond the elections in 2020 to 2021 period because economies will rebound then and Zambia’s debt and Financing conditions will have improved and changed for the better having restructured or prepared these Euro Bonds Nows 2030 will be better for Zambia that is why it makes sense to continue with austerity and perform the economy even in these…

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  28. conditions Looking at those graphs alone with a focus on “risk premia or the alternative risk premia “” and not the entire portfolios of global securities and positioning to growth outlook long-term is also wrong analysis from an investor in GRZ Zambian Government bonds

    Its clearly a wrong commentary without forward looking and decomposing Investors in Zambia Government bonds and their tolerance for risk-Risk premia

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  29. HH HAS FAILED TO BECOME PRESIDENT OF ZAMBIA FOR MORE THAN 11 YEARS NOW, AND HE HAS NOT RESIGNED FOR FAILING HIS SUPPORTERS, BUT HE WANTS BWALYA NG’ANDU TO RESIGN AFTER JUST 4 MONTHS AS FINANCE MINISTER! WHY HAS LED BY EXAMPLE ALL THIS TIME! RESIGNING TO GIVE OTHERS CHANCE! LOOKS LIKE HES A HYPOCRIT THROUGH AND THROUGH!

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  30. I’m not a fun of Lungu and his girlfriend/advisor Kaizer Zulu neither am I a fun of HH.But HH is right, we are headed for a default and consequently more economic challenges.

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  31. On the contrary Investors see Zambian Bonds to perform that is why 2019 The
    frontier bond yields outperformed at 7.6% compared to emerging and Zambia was overweight as Investors see the real options in Zambian Bonds even when restructured or eventual payment That investor Confidence is likely to continue to 2020 and beyond as conditions and market improve

    investors would rather take a position in Zambian Bonds that other because of their attractiveness flexibility and restructuring options They have seen little potential for default as more partners and investors (IMF,US,CHINA and others) have interest and would not let the country They will support but let the…

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  32. but let the minister focus and manage without influencing unduly the markets and investor sentiments

    In the composite of Frontier Bond markets Zambia is the most attractive Bonds to the rest and could be restructured except from the countries point view at some spread above comparable to mitigate the Outlooks

    Hope for the best and work the economic indicators Okay the rest will be history

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  33. IN LIFE FOCUS IS THE WAY TO GO,IF YOU COMPARE THE TWO (H.H & ECL) YOU WILL LEARN THAT ONE HAS VISION WHILE THE OTHER HAS NOTHING. JUST LOOK AT THEIR TRUCK RECORDS ….FOR THE PAST TWENTY YEARS.IN LIFE PROJECTION IS IMPORTANT THAT’S WHY THE BIBLE SAY THAT WHERE THERE’S NO VISION PEOPLE PERISH.ZAMBIANS ARE SUFFERING BECAUSE OUR LEADERS WHO DO NOT HAVE VISION,THEY CAN NOT SEE BEYOND . HH IS JUST ALERTING THOSE IN LEADERSHIP BECAUSE AS AN ECONOMIST HE SEES BEYOND. WAPYA MUNZI BAASA.

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  34. Aristotle is a typical Tonga who wants to support his HH at all costs because of tribe! Whatever insults you hurl, your HH will never rule Zambia because hes not popular, he is one of the parastatal companies sale crooks/thieves, he is a tribalist who threw out Sakwiba Sikota, Patrick Chisanga, Robert Sichinga from your UPND because they are not Tonga! So HH should not be cheated that hes going to win in 2021, and when he loses he claims “his vote is stolen”! Let him just think deeply, where is going to get votes from? Of course not from the Northern part of Zambia! Not from the Eastern part of Zambia! That’s already half of Zambia’s population! KAYAA! ULABECHA MUSA!

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  35. Nose diving towards the sun thats what is happening and the end result is disastrous. We were warned and we are being warned again and again. We can change the course of the flight towards the sun in 2021. Let someone who knows how to arrest this situation take over the cockpit.
    We are in trouble now and the worst is on its way.
    Disaster!!!

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  36. This is where trible HH should be telling us how he will lower the price of mealie meal, lower taxes, etc etc from an economy that we know is dead.

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