UPND chairman for economics and finance Situmbeko Musokotwane has claimed that says the PF government is printing money, a situation he has described as disastrous to the economy.
Featuring on Millenium Radio’s “Interview program,” Dr Musokotwane disclosed that the current balance sheet at the Bank of Zambia (BOZ) indicated that the central bank was loaning out money to government which in itself is equivalent to printing money.
The former finance minister (MMD government) said the current PF government had spent all the money from tax payers and that the only option they had was to borrow money from BOZ, a situation he said was equivalent putting more fuel to fire or salt to an open wound.
‘’The exchange rate under such circumstances is likely to go up because now even to pay external debt, the central bank will be loaning government which is a wrong way to do things,’’ he said.
Dr. Musokotwane explained that the mining sector needed to be handled with care as it was the biggest tax payer, employer and forex earner which was benefitting the country.
‘’The PF always want to spend money without understanding production, this is why the mining sector is still facing challenges, in 2010 and 2011 our copper production was more than 2 million metric tons per year but currently we (Zambia) are below 800, 000 metric tons,’’ he said.
Further, he stated that there was need to seriously come up with a good 2021 budget unlike the current one that was 50 percent spent on salaries, 40 percent paying back debt and that other important projects in the country had 10 percent share.
‘’As UPND, we will ensure there is a budget that will allow us to hire 40, 000 youths that have graduated from universities, a budget that will allow us to do many things unlike the current one which is just a budget of salaries and allowances,’’ he said.
‘’We need to engage the creditors, those that gave us the money so that the period in which we pay back can be strengthened and give us time to breath,’’ he added.
He said the UPND will be aggressive towards creditors and negotiate debts the country owes as it was the only way Zambians lives can be improved.
“In 2010 and 2011 our copper production was more than 2 million metric tons per year but currently we (Zambia) are below 800,000 metric tons”
This is a blatant lie! We have never hit a million tonnes copper production in Zambia even at the best of times in 1969/70.
We also need to grow our GDP so that our debt ratio can reduce. Zambia’s GDP should be around 100 billion dollars not 26 billion it is today.
Lungu is hapless……..even his chawama tarven was in financial trouble , what gives you hope that he can run the country in profit ?????
Every single economic indicator is down.
Very irresponsible statement from a former Finance Minister
“Unlike the current where 50% is salaries…..” “UPND will make one which will allow us to hire 40000 youths…..bla bla bla..”
Dr. Musokotwane, please think before you talk. Listen to your voice, and give a little bit of thought. I know you are a busy man but talking like this is very shaming.
Dr Musokotwane is being very irresponsible and economical with the truth
when a PHD holder speaks like a braniless cadre!
Shame on your Musokotwene
@Nsimbi. You’re very right Dr. Musokotwane is lied.
@Nsimbi is it just that you don’t want to read or what? The production figures are in the public domain. Please dont argue just for the sake of it but counter with your figures. Atleast i am aware that in 2018 just FQM alone had over 600,000 tonnes.
Mine 2017 (Tonnes) 2018 (Tonnes)
Kansanshi Mining 250 803,96 249 532,07
Lumwana 116 170,6 101 890,03
Mopani 44 860,35 62 191,24
Konkola 84 436,08 93 165,01
Chibuluma 10 194,50 11 258,53
CNMC Luanshya 43 206,34 50 363,32
Lubambe 18 037,06 22 074,50
NFCA 27 706,22 27 644,02
Sino Metals 7 100,00 9 312,90
Kalumbila Minerals 190 913,23 223 655,12
Small Scale 5 900,71 10, 859,47
Total 799 329.12 861 946.1
Reading the last paragraph worries me about UPND’s truthfulness. A party shouldn’t be sayings things just because it sounds good to the cadres or masses. How do you negotiate “aggressively” with your creditors when you have no leverage?. A debtor has no leverage against the creditor, you are always under the terms of the creditor . As a debtor you can only negotiate or renegotiate for favourable terms. Are you going to threaten your creditors with defaults? which will be catastrophic. That is a false promise. Maybe it’s the wrong use of the word aggressive but then the party should be careful with the language they use.
This is how useless upnd has become. A whole former finance Minister and very senior member can go on the media and tell childish lies. It points to one fundamental reality about upnd-they have run out of ideas and have no tangible strategy to challenge the PF. Armageddon flopped badly as can be evidenced by what is happening in Western and N/western provinces. Let’s wait for the third force.
An old man lying through his rotten teeth. How disappointing. The problem with these old people is that they don’t want to retire and go back to the land to farm. Leave the urban areas for the youth and politics for young people. You had your chance and failed lamentably. Now all of a sudden you think you are the economy messiah. My friend can you eff off
Every one is printing money, what do you think they mean in the UK when they say quantitative easing? they are printing money, the difference is the UK can back up that money while Zambia can not. Printing money in Zambia means the Kwacha losing value against the dollar and with our debt dominated in dollars we will have to print more and more money.
“As UPND, we will ensure there is a budget that will allow us to hire 40, 000 youths that have graduated from universities, a budget that will allow us to do many things unlike the current one which is just a budget of salaries and allowances,’’ he said.
Mr. Musokotwane, you mean you will stop paying the current Civil and Public Servants and just pay the 40,000 graduates you will hire in order to reduce on the salaries and allowances of the Government or the 40,000 graduates will be working for charity. Come on Mr. Former Money Man
Mr Musokotwane you are an Economist, what you are saying doesnt make sense at all. If it is then we will be doomed as country if UPND came into power. GOD FORBID
Good observations Ba Musokotwane BUT Zambia has NEVER produced 2million metric tonnes of Copper per year even in colonial times!
Lying old man.
Mudala alebepa ..kikikikiki
It is indeed a shame for a former chief economist at the Bank of Zambia & and a former finance Minister to mislead the nation through blatant lies. Where did you get your information Sir. Is this the kind of leadrship UPND will bring to the country. You should be ashamed of yourself sir and retract your misleading talk.
The USA can print its way out of debt , even foreign debt because the US dollar is the global unit of account and trade. Zambia can only print its way out of local debt. Whn it comes to foreign debt, the printed kwacha still has to come to the foreign exchange market. That’s where reality hits it. There’s no sovereignty in the foreign exchange market as the UK found out in 1992 whn the pound was savaged by currency traders.
Surely why would a senior citizen and former senior government minister tell such lies? UPND are willing to prostitute themselves like this for the sake of a few votes. I’d rather lose and have my self-respect and dignity intact!!!
Hire 40,000 youths and take them were? Specify were you will take them.To savage yard or were?
Hire 40,000 youths and take them were? Savage yard or were to?
mmmmm masushi
LT bloggers are just gullible!
Why do you believe everything PF media team fabricates in the name of other people? If you did not hear first hand what someone said, don’t be too quick to conclude! What kind of mindless Education System do Zambians go through?
These blogs are full of pf propaganda teams careful who you listen to! Just do your own research
2 million tonnes? Stay in your lane. Thanks Nsimbi.
Read historical mining data of 1969 and 1970.
Do you understand what 2 million tonnes of copper mean?
Biggest problem in my country .
The PF recently announced that they would get K800 million bond from the bank of Zambia. Musokotwane is right on that account. That is quantitative easing. It’s actually digital money. It is done in the West as well, but they are able to handle it because they produce and their currencies are strong. Quantitative easing, when your currency is pegged against the dollar, pound etc. and you do not manufacture enough value added goods is a recipe for hyper inflation. People should ask themselves – with the massive amounts going to debt servicing and we approaching the 2021 elections, where are all these ’empowerment’ funds and ‘dishing out’ of money to PF groups coming from?
The German company Giesecke & Devrient in Leipüzig is also printing the Kwacha. I have friends working there.They print most African monies. Giesecke & Devrient prints notes with the highest security with a high has a price tag.