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Thursday, January 27, 2022

IMF programs should not be entertained, they do not usually favour the poor people-Kambwili

Economy IMF programs should not be entertained, they do not usually favour the...

Former National Democratic Congress (NDC) President Dr. Chishimba Kambwili says International Monetary Fund programs should not be entertained by the Government because they do not usually favour the poor people.

Dr. Kambwili said it was shocking that the announcement of an agreement with the IMF this week came at the same time as the Government’s revelation that it was removing subsidies on electricity and fuel.

The former Minister of Information and Roan Member of Parliament during the Patriotic Front (PF) regime said the IMF program will increase poverty in the country.

Dr. Kambwili said it is automatic that an increase in fuel and electricity prices will increase the cost of living and cost of production in the country.

“The IMF bailout program is a double edged sword that can either make your country better or make your country worse. The IMF bailout is good if you are getting money to try and sort out certain urgent matters in the economy, but what matters are conditions set by the IMF. More often than not the IMF conditions will not favour the poor people,” Dr. Kambwili said on a SUN FM radio programme on Wednesday morning.

“And if the conditions do not favour the poor people the best you can do is renegotiate those conditions or find other alternatives to sort out the problem that you have in the economy. In this case it is very clear that one of the conditions the IMF has given the Zambian Government is to remove all forms of subsidies. Fuel subsidies, electricity subsidies. When Minister Msokotwane was announcing that they have reached an agreement with the IMF , that is the time he announced the removal of fuel and electricity subsidies,” he said.

“What that entails is that the fuel price will just go from about K17 per litre to about K23, K24 per litre. It means that the cost of production is going to be pushed up; the cost of transport is going to be pushed up. Equally if they remove electricity subsidies it would mean the cost of electricity will go up. If the cost of electricity will go up, the production cost for all the produce will go up, for the farmers to irrigate their land they will be paying very high electricity tariff meaning therefore the agricultural produce will be very expensive,” Dr. Kambwili said.

The PF Member said the removal of subsidies on fuel and electricity will not only affect people who drive vehicles but everyone including a child in the mother’s womb.

“When fuel is increased it affects everybody, even the child who is in the womb is affected. If the cost of food is very expensive the mother will not have enough nutrients to feed that child in the womb.”

“If you look at the average earnings of workers in Zambia, civil servants inclusive, are just plus or minus K3000 now, if the cost of fuel and electricity go up this category of workers will not be able to afford three meals in a day, they will not be able to afford basic needs. It means you are taking away the disposable income from the poor people and for those who do not work it is actually worse.”

“PF did not rush into signing the IMF deal because they were trying to renegotiate to run away from the fact that you needed to remove subsidies at once. Removing subsidies should have been gradual so that you give people breathing space as you are removing subsidies. You also increase the salaries of the workers in Government, in the mining sector and the workers all over including security guards and the house maids,” he said.

According to Finance Minister Dr. Situmbeko Msokotwane, the 2022 national budget has no provision for subsidies on fuel and electricity and that the government spends over $67 million monthly to subsidize the cost of fuel.

20 COMMENTS

  1. YOU MAY BE RIGHT ON THAT
    SO LET ALL THOSE WHO LOOTED OVER THE MANY YEARS BRING BACK THE FUNDS INCLUDING $$$$ REMITTED
    AND PERHAPS WE WILL BE FINE

  2. Well, this is what happens when you are all out there criticising, and for nothing……………..Kambwili is contradicting himself, and confused with his own arguments.
    1] I quote “The IMF bailout program is a double edged sword that can either make your country better or make your country worse. The IMF bailout is good if you are getting money to try and sort out certain urgent matters in the economy….”. The country has defaulted, there is Inflation, WHAT WILL BE URGENT MATTER THAN THIS? WHY DOES HE ASSUME THE COUNTRY WILL BE WORSE?
    2] I quote “..Removing subsidies should have been gradual so that you give people breathing space as you are removing subsidies.” SO, IN GENERAL HE AGREES WITH SUBSIDIES

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  3. And yet Chimbwili backed PF with its higher interest rate Eurobond which doesn’t favour poor Zambia. OH ,the irony/hypocrisy !

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  4. Hh is doing this to sort out what pf messed up….so we are where we are because pf brought us here…what do u want hh to do

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  5. Kambwili please let intellectuals handle this issue, this issue is not for any Jim and Jack, it requires deeper understanding, you yourself told us that your colleagues in PF government were just pompwes, Kabolalas mushibila nsala, UPND is just trying to correct the wrongs and are using the IMF avenue, We have not seen any alternative from you

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  6. Atleast lungu did not comment on things he did not know anything about…………

    This is like a street cleaner advising on open heart surgery………..

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  7. Strange…. $1 per liter, Zambia has the cheapest fuel in the world.
    No am wrong again, it’s same as USA $3.6 per gallon.
    Imwe Ba Kambwili do you know how big is gallon?

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  8. Here I can say PF was better because they were well-informed , than these characters who were boasting that they knew everything concerning this economy , but these hundred days they have demonstrated to us that they were in darkness and had no clue to what could do to solve the Zambian problems concerning economy, now that they are in charged their lack of understanding of the economy has chipped in hence the confusion we are witnessing.

  9. Why does this obese plonker get any attention at all? Why is there even ONE newspaper or media outlet that wastes half a minute listening to what this nincompoop is blering out? By the way have you noticed? CK is getting fatter and fatter and fatter and fatter

  10. Although Kambwili is right to a great extent, I would have preferred this message coming from someone other than Kambwili. Credible statements should be made by credible people…

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  11. Kambwili is a spent force, talks too much, just hot air. He cant understand the IMF deal even if its translated in his favorite bemba proverbs he cant pick anything.

  12. It doesn’t matter who the bearer of words is. The words themselves speak volumes of great good. Kashimba Chimbwili is 1000000000% correct and all who are saying hh is doing this to sort out what PF did are Cowards running away from real issues. Justifying Hachilema’s position on IMF and Subsidy removal is being blunt with progressive positive thinking mastery. IMF was/is not the best option for Zambia. Ain’t Zambians capable of planning and following through actioning good plans? Ubu bukopofye.

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  13. Why should we pay for Kambwili’s fuel? I would rather that money goes to pay for students bursary.

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