Minister of Finance and National Planning Situmbeko Musokotwane has told Parliament that the recent agreement the Zambian Government has reached with the International Monetary Fund when implemented will help to improve the local economy.
In a Ministerial Statement in Parliament on the IMF agreement with the Zambian government reached this week, Dr. Msokotwane said the planned reforms are aimed at restoring price stability, bringing the debt situation under control and achieving higher inclusive growth.
He said if nothing is done regarding Zambia’s current economic status the exchange rate will get worse, prices will escalate and poverty will get out of hand.
A Staff-Level Agreement is an understanding between the IMF and the Government on the economic and financial policies and reforms which the Government will undertake over time.
Dr. Msokotwane added that the planned removal of subsidies on fuel and electricity under the new International Monetary Fund (IMF) programme will help to narrow the gap between the rich and the poor.
He said money to be saved from the removal of subsidies will go towards enhanced CDF, provision of free education and hiring of teachers.
The Finance Minister, however, acknowledged that fuel and electricity consumers will feel the impact of subsidies removal.
Dr. Msokotwane said he is aware that Zambians have raised concerns and fears that life under an IMF program will be harsh.
“Madam Speaker, as I conclude, let me address the concerns and fears expressed by some citizens that life under an IMF program will be harsh. This of course depends on who you are,” he said.
“If you are a rural dweller, life is likely to be better for you rather than being harsh because the enhanced CDF money, free education and availability of teachers will be better for you.”
“If you are a citizen who drives, of course the cost of fuel will be slightly more expensive. In any case, maintaining the status quo is not an option,” Dr. Msokotwane stated.
“I wish to assure the Zambians that our thoughts and actions are with them all the time and we intend to deliver a much better economy and better living conditions for the average citizen than what they are experiencing now. Zambia is in safe hands,” he concluded.
If you can spend hours explaining what you have done that means you’ve done nothing…they will spend the next 5 years just explaining what they’ve done….nothing
These are weak people. He is a reason RB lost to Sata. He was returned to condemn common Zambian to untold misery while they get rich at no charge.
From the way your president was preaching during campaigns, we all thought Upnd was composed of geniuses who would solve our problems without complications. Just like the PF you have ZERO ideas and the only difference is that you are borrowing from the West while PF was borrowing from the East. We’re better off with Mulyokela.
The die is cast! Now, the Zambian people can only watch and hope for the best!
#plant a tree now please!
Lies , Lies Lies……..tel l me 3 countries that have succeeded with IMF loans?
Utuntemba will run the economy of the second largest copper producer in Africa. To expand the tax base, really laughable. Meanwhile our copper resources will be extracted for free. Remember Utuntemba in Chiluba’s MMD. The same route Musokotwane has taken. Doing the same things and expecting a different result.
Soon they will tell us that Zambia will put a man on the moon. We seriously need laws that will lock these people up when it’s discovered that they knowingly signed bad deals for their selfish gains. How much are these deals going to cost Zambia?
good
Mr Musokotwane the truth is that the IMF is not our friend all they do is destroy what you have so that you can join the que of beggars for handouts from them and be another nation depending on donations.
@ 3 Deja Vu
i had so much hope in this government i thought they will transform Zambia into a semi heaven…its exactly the opposite
You want freebies when you have a mountain of debt to pay back? Look what happened to your Kwacha when you defaulted on two coupons……your Kwacha began a downward slide against the dollar. You can try to ignore the debt problem and continue on the same path. There will be no one to save you. Your tiny economy will collapse. You’re no Greece….no one will come to rescue you. In all your complaints no one has suggested how you are going to pay back your creditors. If you want, you can change government now through and uprising or military coup. But the problem will still be there………your creditors will still want the money you owe them. Eurobond holders are private investors. They don’t forgive. Start thinking of how you’re going to pay back. Stop complaining about the…
That’s the reality…………..
Zambia needs a large cash injection while removing subsidies and carry out reforms…….
Not the PF slogans of more money in your pocketsand free cash handouts while the country sunk into unsustainable debt………
Well done HEHH for not sugar coating the truth………
The Zambian economy is in dire straights……..
We have unsustainable debt with a lazy workforce used to free handouts and corruption…………
Yet some PF rats want to make like all is OK without going through reality……..
These were the same rats signing alewelelabo………
The reality is belt tightening before things get better……..
@Future Zed
i think its about time these Politicians start getting locked up for deceiving Zambians…its too much and they know they will get away with lies and more money in their pockets whillst Saulosi, Spaka, Kaizar Zulu,Tarino Orange, Nshilimubemba,Deja Vu, abena ngumbo luapula boy, Nostradumus etc spend time worrying about the Motherland
I have confidence in the current government, no corruption please! Fire, lock up, get the money from whoever tries to still or misapply it. Then fruits will definitely come forth eventually
Its first messy when cleaning up before it gets clean.
You wonder whether Musokotwane himself believes the stuff that comes out of his mouth!
Someone explain to me, how does removing subsidies narrow the gap between the rich and the poor?
Aren’t subsidies meant to cushion the poor in the first place? So how does removing them help the same poor?
He also repeats the same nonsense about fuel subsidies only affecting the ones who drive.
Fuel and electricity are factors in production and any upward adjustment affects everything else.
If anyone has any hope in the new dawn govt, good luck!
I think it is steal, voice commands
Instead of yapping and saying things which are not sensible, Just explain to Zambians that IMF has told you to remove subsidies as part of their conditions for you to obtain loans and more importantly, you have already agreed. Full stop.
Sadly, this minister is socially blind and politically deaf. Fuel is a major input in most production processes. The removal of subsidies on electricity and fuel will invariably lead to the increase cost of production. To give a simple illustration; Estate farming relies on mechanisation which in turn is powered by fuel. How profitable will it be for estate farmers to grow maize at current floor prices? How many farmers will exit maize farming? Will maize millers sell mealie meal at the same price when electricity is more expensive? Will transporters charge the same price after fuel prices go up? How can this achieve the net effect of lowering prices of food and alleviating poverty when the cost of living and production are going up? ‘New Yawn’ nensala
In other words, the minister is saying he has the balls to do it. Unlike some scared past Govts. Lungu was worried about his third term, could not stomach the idea of no subsidies. These are bold moves and statements done by New Dawn Gov. Free Education or cheap petrol??? New Dawn gov is already thinking of a world that does not depend on Fossil fuels.
Its real f. new dawn!!! Yall thought we was joking????
Upndees thoughts and actions are with IMF all the time and they intend to deliver much better value and better returns for the them than what they experienced in the 90s. Zambia is in dangerous hands, political fossil Musokotwane concluded as he still thinks Zambians are still in the 90s.
Putting the country under the clogged and less traveled, unpredictable path is not only troubling but irresponsible.
Mark my words, with the IMF in full view, sovereignty is stripped.
That country, Zambia, deserves better not people with stuck minds.
This feels like the 90s.
Ok fellow Zambians mulimbe, mukose.
True, I warned electorates to know their candidates. It seems the lies and promises upnd hit tye people were so strong to be countered by many truths preached by the out gone leadership. That aside, I don’t see why hh should celebrate and mark the IMF bu** sh** as a milestone. I too would support a country that would go it alone not one that is at the mercy of the imf.
There is absolutely no reason to justify this bail out.
This state of affairs will afflict “bally will fix it”. Liking how vindicated we are, us the doubting thomases. Man, I hold hh very lowerly.
Great to hear we are in safe hands.
Another round of ‘go back to the(village) land’ as hewers of wood and drawers of water while we the best chola boys for imperialist remain in urban-drives, ‘it depends on who you are’ and that’s just the reality of how poor we are
@ #5 yes there’s Kenya , Botswana and Rwanda which have improved economies courtesy of IMF guidance.
PF mess has to be sorted.So blame UPND for
Trying to restructure the debt and economy.
No easy way out of this.IMF is the last resort
When you are on oxygen.
mukanya amenshi ba zambia. ichimpwena cha ku voter. here comes misery. nakaso kakwa bally panotuli
IMF doesn’t help any country , you are lying mr minister.
IMF is a cruel business monster not to play with, you went to borrow because you will get a bonus for selling out your own people into more poverty while you gain.
Get … lost
This generation of old people like Situmbeko are damn wrong guys to elect into office later on appointed Finance minister. This man is not different from nonprogressive marketeer.
He is arrogant yet he is from unemoyment for past 10years. This guy can only survive in public service.
From the time got into office all he knows is arrogance. Shut inden, give back mines, remove subsidies. He is gone on to claim that money saved will be used to build schools, employment provisions and other social infrastructure.
I thought the more logical of which even a two year baby would do is to look at developing sources of income, sustain such. This will eventually provide all social services.
Everytime we rush to borrowing yet ts known fact that these tycoons are after our blood. He is boasting…
Another dullard minister. He looks sleepy anyway.
Mr Magande, go to the front seat please.
I am happy that am not one of those Zambians who accuse the current MOF, SM, to be an economist.