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Alba Iulia
Monday, August 10, 2020

K8 Billion Covid 19 Bond : PF has learnt nothing about the dangers of reckless borrowing

Columns K8 Billion Covid 19 Bond : PF has learnt nothing about the...

By Hakainde Hichilema

Government borrowing affects consumption and saving behaviour of citizens. When the people of Zambia favour us with the opportunity to superintend on the affairs of this country, UPND Government borrowing if at all, will primarily be guided by five fundamental questions in addition to Parliamentary approval, as follows:

  1. What is the borrowing going to be used for?
  2. Is the activity going to boost future productivity?
  3. What is the cost of the loan?
  4. Which generation will bear the burden of repaying the debt?
  5. Will the borrowing aid or impede financial market development?

Our friends in PF used the borrowed money to build cheap roads at an exorbitant cost. Surprisingly the roads are already undergoing repairs in less than three years. Also, there is anecdotal evidence of the borrowed money ending in the politicians’ pocket—corruption at its worst. Houses now even grow like mushrooms—boom 48 house with no owners.

The unemployed youth, women, retirees and many others are unable to earn a decent living as almost 80 percent of what ZRA collects go into paying the nkongole leaving nothing for economic development.

Clearly PF have learnt nothing about the dangers of reckless borrowing. Every week they are on the market borrowing through treasury bills and the recently issued COVID 19 bond. That K8 billion Covid 19 bond should have been money available to entrepreneurs and citizens to borrow for help grow our economy — private investment supplements government efforts. Those who try to compete with the government in borrowing in our financial market end up paying high-interest rates.

Can you imagine that our hard working fellow citizens who borrow via mobile money just for one month the interest is as high as 21.4 percent? If you borrow K4,500 within one month, you are expected to pay back K5,463.00.

After we are sworn in with your support, you the people of Zambia, all these huge loans ending in politicians’ pockets, and extortionate loans with high interest that citizens borrow will come to an end. High bank interest rates and the Kwacha will behave. Bally will Fix it.

22 COMMENTS

  1. Now this is the kind of leadership Zambia needs, well done HH. PF you have a year to ask for forgiveness from the citizens otherwise prison is waiting for you August next year. This is free advise.

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  2. If there’s a government that people can trust with spending public money properly, all people I know agree that they would be willing to pay more in taxes to fix some of our social problems. But they’re not willing to pay more taxes just to enable some selfish people in power to drive around in 4x4s and lining their pockets.

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  3. Lungu only knows how to borrow , spend , steal , beg and borrow again……..

    He has absolutely no clue about production…..

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  4. HH please change your approach to be more effective as opposition.

    You know very well that Zambia is not alone in ‘reckless,’ borrowing to create a stimulus package.
    1). USA printing trillions and giving priority to large firms and smaller businesses have nothing.
    2). UK, offering help to large firms but not smaller businesses.

    Worldwide this is the pattern because larger firms are more productive and more vital for economy as they hire more people and the protective effect is to stop high unemployment.

    You don’t always have to criticise, but maybe join in and please present facts. You know better.

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  5. HH has never provided evidence about the corruptions he has always talked about. I personally will appreciate reporting suspects of corruption with evidence.

    Grow up mwaice oval head. PF is meant well for zambians.

    Your tribalist party will go no where. Zambians are not ready to give power to a tribalist president.

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  6. The master told his servant that you’ve been sincere on small things, here are extra five talents. Now a person hasn’t been sincere with privatization how do you expect him to handle national affairs. Not me and my family in Luwingu

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  7. WE WILL SUPPORT YOU HH DONT WORYY. At least I thank the government for the step taken to clear retirees at Public Service Pensions Fund (PSPF). Please PSPF personnel I know you are reading this. Don’t behave like you did last time when government gave you 5million you ended up paying retirees of 2018 and 2019 leaving old ones who retired in 2016 and 2017 giving fake reasons that it was a directive from the government, how can the government give you wrong directive as if you don’t have a mouth to tell government that you follow pensions numbers as they retire? This time follow the seniority according to serial of pensions numbers. (Old ones OUT new ones REMAIN, you have also started corruption. Use that money this week to pay retirees it is not for you to give loans like you did last…

  8. HH, you are speaking Greek!
    Very few understand you.
    The majority just want to listen to songs and vote for them. Just make 2021 your last attempt. You have nothing to lose after all. When people refuse to be helped, there is not much you can do to change anything. When people are so used to suffering and mediocre leaders, they will choose suffering because they somehow have made a bl00d covenant with “wako ni wako.” Leave them alone and enjoy your riches quietly!

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  9. Every country and majority of people in the world borrow. Even you HH you have borrowed and have debt. Borrowing does not mean failure. It is quite dull to use your liquid cash on huge expenses that have a long term effect, when your cash is gaining more interest than the rates of interest of borrowing. I have a very humble education background but even I know this.it is quite shocking that a man who claims to be a billionaire and highly educated economist appears to dull to grasp simple economic strategies. We cannot risk such a man being in power. Chikopo wandalama uyo. After all he stole privatisation funds.

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  10. The concept of seeking finance on the world market forms part of the economic activity every nation engages in order to implement its policies to BENEFIT its citizenry. These resources are provided on agreed mutual terms to the lender and the loanee. However, in recent years both bilateral and multilateral agreements have involved elements of moral values of borrowing to both lenders and recipients of finances. In short the lender has a moral duty to those it lends ensure the money is meant for the public good and those seeking finance have the capacity to repay. Its from this principle that creditworthiness is vital to consummate the agreement. In the absence of this element a state that borrows regardless of it, risk relegation to junk state and unable to secure loans from world…

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  11. Funny thing , the PF rats above see nothing wrong with Zambia borrowing , knowing full well that is where they chew from and the country hardly manufactures any goods for export…….to them what is in Zambia earth is mana from heaven.

    The rats are even comparing borrowing in countries like the USA , UK……

    The elephant narrative is lost on them….

    ” When you see an elephant crossing a deep long river , does not mean any animal can cross…..”

    Moral is , an elephant can breath through the trunk even if face submerged , the usa and UK can borrow all the like , they are major manufactures , where as Zambia imports nearly everything….

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  12. The USA and UK will take under 10 years to clear their debt , where as Zambia will take 40 to 50 years if ever , or only if it is forgiven as the PF and lungu are begging for……….

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  13. Yaba. Thanks HH, borrowing is not a bad idea but like you rightly put the purpose and ability to pay back must be considered. However the 5 points you have prevented work well in a business model. Government has the economic and social responsibility to its people. The five points are a good example of how the IMF has impoverished African states with its structural adjustment plans of 1990s. To date African countries have shortage of teachers and medical personal yet millions trained people are on the streets. Go to Botswana, Uganda, Zimbabwe, Zambia etc. Everyone’s eye is at balancing the books.

    But few months ago you were one of those calling for total lockdown. How were lives of people and business going to be sustained by govt? This package they are working on will have been…

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  14. Let the President appoint a Commission of Inquiry on privatization so that we learn how this halitosis man is getting the guts everyday.

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  15. Ati “Chikopo wandalama uyo”, ki..ki…ki…
    Clearly, everyone can really see who the true “Chikopo ” is, a person who is NOT capable of grasping simple relayed message and instead trying to manipulate others. For your understanding, HH has said if he does borrow, the money will be used for the betterment of all Zambians and NOT to pay people like you who are hired on taxpayer’s money to maintain the PF Propaganda machinery. The issue is that Whatever HH does, to you so called PF rats(if I may borrow Spaka`s word), its never enough. You will always find ways to twist things to your advantage. Are you telling me there is no corruption in Zambia? What evidence do you want him to produce, when you own the government wings that is supposed to gather evidence? Instead of questioning ECL,…

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  16. Bwana HH, PF are busy rigging the 2021 elections by doctoring the voters register, this is not the time to talk about economics. Zambians are not enlightened about prudent economics. No will listen, they are hungry. If you truly want to serve them, this is the time to capture their hearts. What will be your election theme? How are you going to protect their votes. Do not think about going to court again, it is a waste of time. Sort out the current skewed registration of voters. If you do not do so now , sorry mate it will be all downhill next year. PF will rig elections big time. They will count all prisoners dead or alive and you will be shocked.

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  17. And please next year when you come in power repossess all these mansions built from stolen public funds and loans borrowed recklessly!!!

  18. “Your comment is awaiting moderation ” means we hv submitted a report about wht u hv posted to the powers that be to establishyour real identity.

  19. 100% PF.
    100% ECL.
    100% Zambian Patriots.
    100% Zambia overdrive.
    Tribalism is corruption; Nepotism is corruption; Bribery is corruption.
    Search your souls.
    Icintu cintu umwene namenso yobe weka.

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  20. If the people of Zambia decide to throw PF out of governing among the truth and reconciliation issues I wish could be dealt with under a Commission to be established or relevant parliamentary committee is the consistent accusation that HH sold and stole from the mines. It would be nice to have all the still alive members of the negotiating teams then, come forth to testify! This song is an irritation and those that have detailed information are conveniently quiet to sustain the deliberate suspense!

  21. Please get your facts correct and don’t give misleading information. Borrowing K4,500 at 21.4% interest per annum, does not translate to K5,463, but rather K4,580.25, unless you’re saying 21.4% interest monthly. No bank in Zambia is charging 21.4% interest on a monthly basis. This is a very misleading article and thus somewhat void of the truth.

  22. Comment:Who is tribal here,?is it HH or u who always when u open yo mouth its tribe which comes to yo mind ,who bewitched u,I haven’t seen anything like tribal in the arrival ,can u tell where HH has said anything to do with tribe,its u who is tribal don’t even waist yo time talking about tribal or privatisation everyone knows has never had a job in Govt or parastatal zambianss are more united now to boot thieves out of Govt

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