Friday, April 19, 2024

Staff-level agreement signed with IMF to contract US$1.4 billion will boost the economy

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The Zambia Tax Platform, an alliance of different civil society organisations, is optimistic that the staff-level agreement which the government signed with the International Monetary Fund (IMF) to contract US$1.4 billion will boost the economy.

Zambia Tax Platform Alliance Coordinator, Ibrahim Kamara, said the staff-level agreement is important for the country as it will help in restructuring or refinancing Zambia’s debt.

Mr. Kamara said the staff-level agreement will boost investor confidence and lenders will also be in a position to lend because the government will win IMF’s confidence.

Speaking during an orientation training on the national debt justice campaign movement in Lusaka, Mr. Kamara noted that, going forward, it will be easier for government to engage other lenders because of IMF’s endorsement.

“A staff-level agreement will go a long way to renew the confidence of lenders and even commercial banks will be able to start lending to borrowers, hence growing the economy,” he explained.

He said the government must restructure the debts, especially those which are commercial as they have impacted negatively on foreign reserves and contributed to currency depreciation.

And a representative of Debt Justice Campaign, Charles Mulila, said the government must devise ways to grow the economy instead of contracting more debts.

Debt Justice Campaign is an organization that offers alternative poverty reduction strategies as a means to avert debt contraction.

Mr. Mulila stated that debt contraction in the previous government has affected women more as they have no means to fend for themselves.

He added that for government to avoid debt contraction, it must harmonise and regularise new opened up gold mines through awarding of contracts and licenses to credible local and foreign investors.

He also urged government to broaden the tax base to the would-be empowered small and medium scale miners whom he said have been neglected for a long time.

Mr. Mulila said this is in order for government to generate revenue to avoid debt contraction.

“Averting debt contraction by government can be achieved by empowering women and youths to realise their potential opportunities as a way of sustaining their livelihoods,” he said.

In December last year, the government signed a staff-level agreement with the IMF to restructure credit extended facilities for 2022 to 2025.

This is aimed at restoring economic stability and providing the foundation for all-inclusive economic recovery which will see many players getting involved to borrow money from banks at affordable rates.

18 COMMENTS

  1. Too many vague words here. Can someone publish this so-called staff-level agreement. And why is it called staff-level? I am just asking … I want to learn.

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  2. It’s only you, HH and Situmbeko that are excited about this. Most of us have just kept our fingers crossed, it’s a wait and see situation

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  3. It is foolish to celebrate anything to do with IMF. The praise team will come here singing but they do not know what conditions IMF has set for Zambia.

  4. Ayatollah – Please tell us where you were going to get a billion dollars for this year instead of hallucinating?

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  5. Stop borrowing on half of your great grand children yet to be born.. All for consumption. Please. We don’t take pride and self appraisal in borrowing.

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  6. If you are to be effective in promoting debt sustainability in infrastructure and developments ,the best way is to Invest in debt reporting inniatives you should emphasise on debt reporting Accounting and disclosure that also includes contingent liabilities Implementation of good practice systems like in the dempa Acquisition may not be a problem but also how the proceeds will need to Invested in the $1.4 billion and not to run out of money like Ghana as a result of funding consumption rather than reinvesting from the returns to grow the sectors and the economy for internal revenues growth to restructure debts positively long-term

  7. “Staff-level agreement” means that lower level staff members from both parties have come to an agreement, but that their superiors haven’t approved it yet. IMF bosses will only approve once the Zambian government have implemented the conditions of the loan i.e. the abolishment of the fuel and energy subsidies, anti-corruption measures etc. Only then the document will be signed and the funds transferred. As the subsidies have not been removed (as yet) nothing will happen.

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  8. Government cannot grow the economy. Government is responsible for implementing policies that lead to economic growth. The people of Zambia are the ones to grow the economy.
    We can only talk but not execute. If we keep on waiting for economic assistance, we’ll keep wallowing in poverty.

    Mother Zambia let’s put ourselves together and get ourselves out of the economic mess. Chinese built their economy. The American people built their economy. The. Japanese built their economy. The Nigerians built their economy. The. South Africans built their economy. Where are the Zambians?

    Keep waiting for government to feed you and you’ll sleep hungry

  9. One or two pf cadrs above talking as if they have plan B to pay back the debt. And by the way, which they themselves borrowed. I think it’s jst fair that we ban all PF cadres from commenting on the Debt issue, cos common,why did they still so much in the first place and where is this money? In their homes-GRZ must jst bundle these thieves & they ll explain in front. Cos look at their arrogance? UPND is fighting tooth & nail to settle the debt and they are busy mocking, HH shd grow a thick skin on this topic. For as along as someone served in Lungu GRZ -jst arrest, law ll apply after exonerating themselves.

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  10. Cry my beloved country….now coming up with fancy words to make it look like it’s a good thing….kaloba is Kaloba period….please stop borrowing for consumption…..and let’s stop depending on the West…we have enough resources to sustain ourselves

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  11. THE ELEPHANT IN THE ROOM ABOUT THIS AGREEMENT IS THAT IT IS SECRET. THE DETAILS HAVE BEEN KEPT FROM ZAMBIANS. THE “STAFF LEVEL” PART OF IT HAS NOT EVEN BEEN EXPLAINED.
    SO WE SHALL SPECULATE : IS IT ABOUT REDUCING THE HUGE WAGE BILL OF NATIONAL GOVERNMENT AND LOCAL GOVERNMENT.
    AND THEREFORE EMBARRASSING RETRENCHMENTS?

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  12. #4 Tarino Orange, I’m waiting to see how Bally will hallucinate more than 42,000 civil service jobs this year alone against IMF conditions. FTJ and MMD had more goodwill with both the World Bank and IMF and I don’t have to explain where that left us

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  13. Cry my beloved country ?? Yes you are right !!
    But who’s fault is it by keeping a defunct careless Government in power for the last 10 years and prior to that
    We are Bankrupt… People of Zambia,

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  14. @11 Saulosi we are mentally dependent on the West. School teaches us to admire bazungu and their achievements. The few of us who have realized this are too few to have a reverse influence. We are seen to be weird because we are not doing what everyone else is doing. Zambia will remain dependent as long as citizens don’t learn to admire themselves like Malcolm X urged us negroes.

  15. Stiupit article, careless talk, empty rant, blind vibe. Stiupit !d!0+ sit down and shut ya trump. We are mourning.
    Imf is so oppressive and damn.

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