Friday, March 29, 2024

Dr Musokotwane holds talks with IMF Zambia Rep

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The International Monetary Fund Resident Representative for Zambia Preya Sharma yesterday morning held a meeting with Finance Minister Dr. Situmbeko Musokotwane.

The bilateral engagement, held at the Ministry of Finance was the first between the IMF Resident Representative and Dr. Musokotwane and discussed various aspects of strengthening the partnership between Zambia and the Fund.

Zambia a few days ago received 1.3 billion US dollars from the 650 billion US dollars IMF Special Drawing Rights general allocation.

The Ministry of Finance says the resources from the IMF will assist the country to attain the development aspirations and lead to economic stabilisation and positive growth.

International Monetary Fund Resident Representative for Zambia Preya Sharma  meeting with Finance Minister Dr. Situmbeko Musokotwane
International Monetary Fund Resident Representative for Zambia Preya Sharma meeting with Finance Minister Dr. Situmbeko Musokotwane

Yesterday Forum for Democracy and Development president Hon. Edith Nawakwi said that the appointment of Dr. Situmbeko Musokotwane Member of Parliament-Elect as finance minister was in complete breach of the Constitution of the Republic of Zambia.

Hon. Nawakwi in her facebook posting said Dr. Musokotwane is not a Member of Parliament and that he has not been sworn in as member of parliament.

“One wonders under what Law His Excellency Hakainde Hichilema gave him the keys to open the Treasury of our Republic. This Constitutional breach by the President is contrary to the oath of office taken by the President in which he undertook to defend and protect the Constitution of Zambia. It is this same constitution that instructs the President to appoint Ministers from among Members of Parliament,” Hon. Nawakwi said.

Hon. Nawakwi wondered whether there is another Parliament where Dr. Musokotwane could have taken a secret oath from.

“To date, there are only two (2) office bearers that the country is aware of and that is His Excellency the President Hakainde Hichilema and Her Honor Mrs. Mutale Nalumango. Any other person purporting to be exercising powers under our Republican Constitution is acting illegally. To this effect the President has breached the Constitution of Zambia,” she said.

“I wonder where the Government Lawyers are… Are they scared of advising the President or their advice is simply not being sought, the new broom can sweep very well but the old broom knows the corners of the house,” Hon. Nawakwi said.

58 COMMENTS

  1. HEHH has always said his GRZ will need to borrow money from the IMF to repair the PF damage………

    Auditing is still going on, people will be shocked at the damage PF done……

    On top of the economic damage there is the social damage where UPND have to work carefully, where there is a large number of people used to bribes and free cash handouts……these are the people that will cause problems for the new GRZ…..

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  2. We all know what IMF is all about. We should avoid this route. It means only retrenchments, No fertiliser subsdies, No free education. Ask KK and Chiluba. IMF does not mean well ….GET IT CLEAR IN YOUR HEAD !!!

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  3. You were laughing at your friends for borrowing money……YOU ARE DOING JUST TH SAME!! Where are jobs you promised?

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  4. How many times has John Sangwa misled people?? No credibility! Mr know it all but always losing cases! I bet Musokotwane is illegally occupying office!!

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  5. When you have a government that does not trust its own capabilities to manage resources without foreign guidance.
    What can we say about financial puppets?

    Hope you placing your houses as collateral for those loans you’re negotiating.

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  6. There are only ministers when there is parliament! The same UPND petitioned the elections of 2016 on the basis of ministers being on office when there was no parliament! How do we have a minister now when there is no parliament? Musokotwane is illegally a minister!!

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  7. The Zambian Parliament was dissolved three months before last elections. Since then, there hasn’t been any minister because there is no parley.
    Do you remember Lungu allowed ministers to illegally continue working and drawing a salary in 2016?
    That said, how can you have a minister when Zambia has no Parliament? Is it constitutional? Dr. Musokotwane currently has no instrument of power. Quickly correct this anomaly. On September 10, HH opens the Legislature.

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  8. The IMF has no human face. It is a typical ferocious lion. Instead of creating jobs, it eats up employment ans social amenities. Besides, if Zambia has unsustainable debt it means she can’t pay back. How do you borrow again?
    The West wants us to and kongola from them so they benefit from us too, to make us abandon the East.
    Switch from China to USA!

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  9. IMF is MMD cause of failure!!!!!!!!!!!!!!!!!! Recycling politicians like this Musokotwane is the same as bringing back MMD!!!!!!!!!!!! Mistake number one HH has made by recycling this minister of finance………… MMD during Chiluba time failed due IMF…………… those who were there remember SAP!!!!!!!!!!!!!!!!!!!!! You know the story…

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  10. They criticised us for engaging financial agencies yet here they are begging. A whole billionaire president begging. Can some one tell us if hh is getting salary as president when he is worth billions and said he is in this for Zambian people. Beans fye

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  11. Please Zambia….is this all we can continue with….listen to Professor PL Lumumba…this is exactly he preaches against…when are we going to start depending on ourselves….IMF preys on poor African Countries and Zambia is now trying to enslave itself…the same people who criticized Lungu on borrowing are now singing praises on HH’s borrowing….so it was just criticizing out of hate for Lungu…
    And the Banks have already started restrictions on cash withdrawal and other transactions…….HH is about to fail big time…Joe Biden is sleeping walking in the white house and Americans want him out of office ASAP….the devil you know is better than an Angel you don’t know

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  12. There are many IMF success cases ……

    Ghana comes to immediate mind…….

    I you are a clueless corrupt government, then the IMF is not for you…………

    If you are a prudent , economic savy and efficient government, you can work well with the IMF………

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  13. #12  Saulosi 
    September 1, 2021 At 9:19 am

    “Please Zambia….is this all we can continue with….listen to Professor PL Lumumba…this is exactly he preaches against……”

    Bwana , I am sure you know how to use Google, just Google

    ” IMF success stories in developing countries ”

    If you expect the IMF to spoon feed you and provide jobs and develop your country , it will not happen ……..

    The IMF helps with liquidity problems where countries need money to overcome hurdles in their economy, like zambia now needs cash immediately to keep things moving , not tomorrow.

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  14. In the age of mass communication and the Internet it is shocking how many ignorant people there are …….

    worst of all , right here on LT we have people very ignorant about the IMF while they have the Internet to read up on sucsses stories of how many countries have been helped by the IMF….

    If you are a dull clueless corrupt GRZ , thinking the IMF will do your hard work , you will appreciate them……

    While HEHH and his GRZ needs time to stabilise the economy and put their mark, zambia needs money now. Hence the IMF.

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  15. Those complaining about the legality of Situmbeko as minister are naive…all politicians are the same, just different political colors. It’s like asking someone to choose what should devour them between a crocodile and a lion… that’s what elections are about. It’s their time to break the law until their time is up.

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  16. THE MONEY PF BORROWED FROM LENDING INSTITUTIONS WAS LOOTED
    THIS WONT HAPPEN NOW AND THE DEBT WILL BE REDUCED IN THE NOT TOO DISTANT FUTURE
    THERE IS NO OTHER WAY FOR US TO GO !!
    MOST DONT REALISE THE DAMAGED DONE BY PF

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  17. You should try your best not to take anything trolls say seriously. No matter how poorly they behave, remember these people spend countless unproductive hours trying to make people mad. They’re not worth your time of the day.

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  18. In future let’s include in our constitution a people’s charter where political parties sign that they do as they promised during their campaigns. Failure to do this will result in a recall.

  19. IMF is the only way out.whether we like it or
    Not.let the loan be put to good use.let it be
    Used to generate income and not wasted
    Like eurobonds.Give targets with incentive
    To law enforcement agencies to recover what previous leaders have looted as that
    Can be used to achieve election promises.

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  20. As a staunch UPND supporter I am not happy with the appointment of Musokotwane, he had scandals in MMD and his only thinking is to run back to the IMF so that they can dictate our policy, I thought HH would bring new ideas, but it looks like he has already started making mistakes.

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  21. The IMF offers loans to governments, and of course it puts conditions for that. But it’s totally voluntary – you don’t have to accept it. Edgar China Lungu was not able to secure a loan with the IMF, because his government could not guarantee payback. Not surprising when all the money went into his pockets and that of his cronies. Who are now failing to get the money out of the country!

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  22. @ London, if you had commitments to settle, but had no funds in your coffers. And was faced with two options, to borrow money or to print it. What would you choose?

  23. @15 Spaka September 1, 2021 at 9:42 am
    You can’t call someone ignorant for having a divergent view from yours. So called success stories of IMF in developing countries are more often than not authored by western journalists if not by the actual PR wing of the IMF and World Bank.
    Care to Google specifically about the IMF and World Bank evaluation report on the extent of success of the SAP implemented in Zambia in the early 90s. They acknowledge it could have been better if they had taken into consideration local socio-economic dynamics in their plans rather than the rigid economic template done by Harvard scholars who have never left the shores of their Mighty USA. This is with regard to poverty that ensued because of the astronomical speed with which privatization was driven at…

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  24. …. Continued
    Going the route of IMF, most of us are wary that our aspirations of having our children getting placed as doctors, nurses and teachers will inevitably be shelved as the IMF reckons the public service workforce is already bloated to unsustainable levels! NOTWITHSTANDING the fact that our doctor to patient ratio, Nurse to patient ratio and teacher to pupil ratio is adverse and need to be addressed.
    We will forever and days continue to haggle over the correct price of maize/mealie meal if we don’t subsidize the farmer in inputs! Implementing cost reflective tariffs on fuel and electricity will deter foreign investors as they will look to our neighboring competitors!

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  25. …Continued
    In established democracies, continuity is a hallmark that has seen progress made rather than regression! I would rather this regime gets to the negotiating table with our current lenders and ask for elasticity in payment terms.
    Sorry but what the IMF is doing is actually buying off the debt we currently hold and make us pay increased interest rates. That’s how they survive…

  26. Edgar Lungu and PF failed to get an IMF loan, when the chips were down (low copper prices, drought, covid) because of the harsh conditions attached. Right now situation is different with copper prices extremely good, reserves healthy and prospects like gold and manganese mining coming up. Upnd GRZ can avoid the IMF loan and concentrate on enhancing what’s available and will still be able to service the loans. Situmbeko is not in order here to rush to the IMF-cabinet and Parliament needs to be in place first to provide insight on which direction the country should take, equally ZCCM-IH needs to be on board to advise and provide further insight on the state of the mining industry. Was the appointment of Situmbeko the first blunder hh made???

  27. @Spaka
    Your hypocrisy is now showing…remember how you used to complain about every little thing that Lungu did…..and so you’re also a Google university graduate….we knew all about IMF way before there was internet…we were taught at school…in primary school …so you’ve become a genius via Google…and you’re now Mr Know it all….IMF is a predator or a loan shack….do you know why the IMF headquarters is in Washington DC a few blocks away from the US treasury….infact i walk past the IMF hq almost twice every week on my way to work.

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  28. # 24  David N
     September 1, 2021 At 11:23 am

    “@15 Spaka September 1, 2021 at 9:42 am
    You can’t call someone ignorant for having a divergent view from yours. So called success stories of IMF in developing countries are more often than not authored by western journalists if not by the actual PR wing of the IMF and World Bank.
    Care to Google specifically about the IMF and World Bank evaluation report on the extent of success of the SAP……..”

    But the countries are there , they are real countries, not imaginary countries. Check up on the present status of those countries from where they were to where they are today after IMF medicine….

    I call most critics of the IMF on LT as ignorant because they are looking at the IMF as some neo colonial western imperialist tool…

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  29. # 24  David N
     September 1, 2021 At 11:23 am

    “@15 Spaka September 1, 2021 at 9:42 am
    You can’t call someone ignorant for having …..

    Yes , the IMF is not a social salvation army organisation…..it is a business.
    If you are a corrupt clueless GRZ , IMF medicine will not work…..

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  30. Spaka anyone who doesn’t agree with him is an enemy not different from the PF intolerance. I’m afraid with such attitude we will have just jumped from a frying pan into a fire.

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  31. @Spaka
    This is what happens we support someone just because of ones race or tribe….let us criticize genuinely not giving someone a free pass just because he is my kind or my tribesmam…..you support HH with all your heart and soul Just because you are from his hometown…thats not cool…am not from Eastern but at some point I supported Lungu way back in 2015….but as for you Spaka have you ever supported any other candidate apart from your god HH…i don’t know how old you are but I am am 100% sure after HH you will never support any other candidate…maybe only when another Southerner comes on the scene…my advice to you is that learn to embrace other tribes

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  32. When we say our state has been captured, we are called all sorts of names. The same people who spent relentless campaigns with their negative propaganda machines have come back to get paid. We saw this coming from a mile away. In fact we know HH is a good man at heart but these guys will turn him into a dictator and abandon him when his own people turn against him. These deals were already done and dusted, what we are seeing is just formalities. We have signed our lives away at bumper harvest when it comes to our resources. All they need is 5 years to clear your copper. Wait until you see the machines which will come in to do the job in the name of investment.

  33. #31  Saulosi 
    September 1, 2021 At 12:43 pm

    “@Spaka
    This is what happens we support someone just because of ones race or tribe….let us criticize genuinely not giving someone a free pass just because he is my kind or my tribesmam…..you support HH with all your heart and soul Just because you are ….”

    I am not a tonga nor am i from southern province…….I am a easterner……

    kwa madede, chief musolo….

    I support the best man for the job of being president of Zambia.

    Most of you critics don’t support HEHH because he is tonga , or not from the east or north or you ate clouded with the PF pollution of accusations of privertisation….

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  34. No Corruption Zambia #22

    THE FACT IS THAT YOU DON’T GO TO IMF WITH CONDITIONS AS HARSH AS THEY ARE IN AN ELECTIONS MONTH. LUNGU ALMOST GOT THE DEAL, BUT IMF INSISTED IMMEDIATED STRUCTURAL ADJUSTMENT PROGRAMMES IMPLEMENTATION.
    HH HAS A BETTER CHANCE BECAUSE HE IS A NEW GRZ FIGUREHEAD RIDING ON A NEW 60% CLEAR MANDATE

  35. The humiliation of being an old man as minister going to beg from a child half your last borns age and the child like Rep laughs as she can see your coffers there is no…Start by ensuring Ministers are few 12 at most…get rid of District Commissioners as you have Provincial PS, get rid of the 10 Provincial Ministers for now rely on the PS….do not have two PS as is the case at Foreign Affairs….reduce the salaries of MPs since there in for service….allow them to import cars if they pay at least a third on duty….push for investment in Agriculture, IT and clean energy as this is what sales…go to the IMF to give a stop gap only…..

  36. Dont really understand why so many people on this forum are worked up on engaging IMF?? IMF is like any other lending institution, except its loans are cheaper and they insist on good governance. The good governance is what usually gets kabolala governments in trouble! If HH can maintain the good governance part, AND apply the ‘humane’ implementation of the plan(IMF is usually too strict on implementation rules, thus can getting in trouble with local population) there is no need to fear IMF.
    The borrowed money, we give the country opportunity to improve productivity capacity – which should lead to increased job opportunities. I believe this is simple and basic economics 🙂

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  37. Spaka shut that your smelly mouth. You are an irritating little slimey tribal f00I. I only win free and fair elections. Not those marred by violence and killing of pf members. Hh is not my president . I don’t recognise f00Is

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  38. You economists are behaving like lawyers who spent one week debating what 14 days mean. We have water, land, natural redourcesand labor in abundance. We have been educating people for over 50 years in various fields. Why can’t we develop and be like Singapore or Malaysia and maintain our dignity so that no one enters ours bedrooms to dictate what we can and cannot do do? The last time we followed the IMF route, we came out with bloody noses! Retrenchments, street kids, collapsed companies etc. were the order of the day. Just where did we go wrong! Are our children, who want jobs like yesterday withstand the conditions that come with IMF bailouts?

  39. #39  Kaizar zulu
     September 1, 2021 At 1:55 pm

    “Spaka shut that your smelly mouth. You are an irritating little slimey tribal f00I. I only win free and fair elections. Not those marred by violence and killing of pf members. Hh is not my president . I don’t recognise f00Is…..”

    Hehehehe ………ati I win elections …..

    It must have been erections you were thinking off, which must off for you…..

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  40. All those MP’s elected or nominated, are a shadow cabinet until ratified by parliament. No salary, no allowance, no use of GRZ facilities, no document signing or else be cited for constitutional misconduct.
    Wait for parley to open in 10 days.

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  41. @Pinkfong, we are worked up because we are old enough to remember the pain we went through with IMF as a country. It took debt forgiveness from the lenders and that same man making these dodgy deals was around when we reached that milestone and said never again. Our question is why are we rushing into this? Already there has been constitutional breach, the very thing you accused the PF of doing? Why does the US owe China trillions, and yet we are being told that the IMF is cheaper? Why is this not being debated in parliament?Questions are being asked but the answers are not forthcoming. So tizapanga chongo.

  42. @Spaka
    It matters less where you from…just try to be factual…you’re in the Diaspora and the fact that you’re interested in the Zambian affairs it means you’re a Patriot but just tone down on your hate for PF and Lungu…they’re not in Govt anymore so stop insulting them….be a good winner….it’s called class when you win and still have respect for the loser and even congratulate them….do you watch Boxing…note how the winner sings all the praises for the losing opponent….thats how it’s supposed to be and by the way Minister of Finance is occupying his office illegally….

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  43. Spaka September 1, 2021 At 12:11 pm
    But the countries are there, they are real countries, not imaginary countries. Check up on the present status of those countries from where they were to where they are today after IMF medicine…
    In Ghana, you couldn’t have a picked a more inappropriate example! Ghana’s economy is not dependent on one commodity like Zambia does on copper. Ghana is the world’s second largest cocoa producer and the cocoa industry provides income to some 4 million households and makes up about 20-25% of total export receipts.
    If you are old enough, you will remember your Social Studies! Ghana used to be called Gold Coast and it is the number 1 producer of gold in Africa. Gold accounts for more than 90% of mining sector revenue and activity.

  44. …Continued
    In addition there is large scale mining activity of other minerals such as bauxite, manganese and diamonds – all lucrative than the copper mining.
    Now, when you look at the IMF Structural Adjustment Program for Ghana, it is identical with the Zambian version – stop hiring, implement a wage freeze for service workers, increase power generation and remove subsidies on all consumptive sectors!
    With the aforementioned mining and agricultural activities, Ghana is well placed to handle the above austerities to a large extent with minimal upheavals. The huge army of high school and tertiary education graduates don’t look to the public service to employ them but instead take advantage of the sweet tooth of the Western world and make cocoa farming a lucrative business. To go…

  45. The “rich countries’ club”, IMF.
    The overall impact of their large fiscal tightening will be to push the economy into recession. The IMF’s projections are for a relatively mild recession until next year, but it will likely be much deeper and longer – as often happens with IMF programs. Unemployment will rise – even the IMF program projections acknowledge that – and so will poverty -theGuardian.
    One reason that it would likely turn out much worse than the IMF projects is that their program relies on assumptions that are not believable – theGuardian.

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  46. …Continued
    Compare that to ZED with only copper dictating the wellbeing of its economy! With the Public service as the largest employer and with no significant cash crops to export.
    C’mon Spaka you have to have a tailor made program to suit our conditions. That is what we are demanding from the new government!!! Not the lazy way of just trying to follow the prescription to letter. AND THAT has to be treated like a Balance Sheet – with the efforts and their gains on infrastructure development and increased power generation in the RIGHT COLUMN while corruption and fiscal indiscipline in the LEFT COLUMN.

  47. Zambians open your eyes.
    This issues is about the West and the East.
    EL dated the East (China), so the people that control the dollar hit him bad using the dollar and encouraged a silent economic rebellion (sanctions) agaisnt Zamba.
    Hh dates the West(US and Europe -owners of IMF), so the the Kwacha gains with minimal stress under the guise of good will. Then they give you US$1.3 billion in an attempt to seize and control your economy. Your Copper and Gold is high on targets. Folks this is the World bank and IMF games.

  48. #45  David N 
    September 1, 2021 At 3:16 pm

    “…..In Ghana, you couldn’t have a picked a more inappropriate example! Ghana’s economy is not dependent on one commodity like Zambia does on copper. Ghana is the world’s second largest cocoa producer and the cocoa industry provides income to some 4 million households and makes up about 20-25% of total export receipts…….”

    David, Ghanas population is almost ×2 that of zambia. The minerals zambia/population head , zambia is in a better position. We also know copper is now in high demand for electric cars.
    And Ghana is not the only country to come out of the IMF package betteroff.

    As I said, the IMF will not do the work for you, they are not the salvation army. Zambians have to sacrifice and work hard.

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  49. You borrowed up to your eyeballs and you have the audacity to say IMF this and that…where do you think you’re going to get funds from? Give solutions…HH told borrowing was unsustainable. ..you laughed at him now he is mopping your mess and your recklessness

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  50. Can we please use some of this money from IMF to sort out water issues, PHI has had serious water issues with no word from Lusaka water,

  51. am glad the majority of Zambians have already realized that all those campaign promises were just hot air….nothing will get done…blah blah blah blah for nothing,,,,,

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  52. So you mean PF borrowed $15b just for inflated road constructions with no investments to generate income to pay back the debt? Hmm! Bally will fix it! We need increased production & more investments into factories to generate more income to pay back the mess PF left us with “useless road construction debt & corrupt criminal consumption” more factories will ensure more youths employment. It’s funny how PF put a maize export ban to DRC congo when they could have invested more into Agriculture increase production and export meliemeal to DRC & neighbouring countries to generate more income not to default on their debt repayment. I’m glad they’re gone manyandule but I would like to see them in jail to set an example that when you commit corruption crimes you’ll be jailed not just…

  53. not just exposing corruption & sitting back. In China corruption criminals are jailed no wonder they are successful with very little corruption activities. I’m glad Bally said those who stole public money will have to pay it back. They need to be jailed if we have to have a meaningful fight for corruption. Set an example & end corruption once & for all otherwise we will continue to have misappropriation of funds in auditor general reports. Your Excellency we back you 100% “Everyone who stole public money should be jailed.” THAT’S THE ONLY SERIOUS WAY TO END CORRUPTION

  54. @Spaka don’t waste your time arguing with armchair economists and keyboard strategists. There is no easy solution, no just use your own resources, increase copper production nonsense to fix the massive mess Zambia is in. While many of the commenters here do have some good points about the IMF, they speak of the old IMF AND they offer no actual alternative solutions, but simplistic naivety. It’s a total waste of time trying to reason with them though.
    Let time and government activity from real strategists and economists dictate what will happen.

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  55. Bally will fix by running to IMF. HH was here when KK and Chiluba went to IMF. It was a disaster. We thought BALLY will use different route to improve Zambian economy having vast experience in industries and other avenue . It seems he is failing already. Governing a country is not a joke but serious matter. No sleeping. There we go . We will be watching. Bally take care Mr President or you go into deep trench.

  56. Spaka September 1, 2021 At 4:42 pm
    1. Zambia is not in a better position. Compare the number of minerals produced and exported by Ghana to what Zambia exports. Gold and diamond are high value minerals weight by weight…and you deliberately overlooked my mention of cocoa…
    2. “We also know copper is now in high demand for electric cars.” Not now, maybe after 2030 when the law on the ban for fossil fuel powered vehicles come into effect! The fact of the matter is that the current bullish copper price is a direct result of falling inventory of the metal at the LME coupled with the downward revision of production numbers in south America (Chile & Peru) due to planned work stoppage if demanded bonus payments are not awarded.
    CASE CLOSED…

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