Central Bank of Zambia Governor Christopher Mvunga has expressed disappointment at the recent remarks uttered by South African Finance minister Tito Mboweni.
Mr. Mboweni has several times dived into Zambian politics and was now recently quoted saying Zambia is a failed state.
Governor Mvunga in a sharp response has not only reminded the Finance Minister of the sovereignty of Zambia but has pointed out that the continued machinations of Mboweni can risk the good relations between Zambia and South Africa.
He observed that it is saddening that Mboweni has continued to put pins in the Zambia and South Africa relations which dates way back with Zambia being an aid to help South Africa gain independence.
As Covid-19 exacerbates the pressure on vulnerable public health systems in Africa, the economic outlook of African countries is also becoming increasingly unstable.
Many African countries are in financial crisis with Zambia and South Africa being no exception, other countries seemingly struggling to include Kenya and Ghana.
Earlier this year, the International Monetary Fund (IMF) projected that the region’s economic growth will shrink by an unprecedented 1.6 percent in 2020 amid tighter financial conditions, a sharp decline in key export prices, and severe disruptions to economic activity linked to the pandemic.
Last week, Fitch Ratings and Moody’s Investors Service cut South Africa’s debt assessments deeper into junk, saying the state may struggle to stick to its plan to rein in spending.
Zambia this month defaulted on its Eurobonds since the onset of the coronavirus pandemic.
But according to the Bloomberg BusinessTech, Mboweni said South Africa can’t implement a pay deal with public servants because it would precipitate a fiscal crisis.
He further picked on Zambia stating that Zambia was an economically failed state and South Africa could head in the same direction.