Friday, May 31, 2024

This is What Finance Minister Situmebeko Musokwatwane Really Means on the IMF deal

Share

By Antonio Mourinho Mwanza

Finance Minister Situmebeko Musokwatwane says that Zambia has recorded a 100 percent performance on the economic programme set with the International Monetary Fund-IMF- last year.

What Musokotwane means is that Government has fully complied with the LOAN conditionalities that the IMF has imposed on Zambia which include the following;

1. The removal of subsidies on fuel which has led to high fuel prices, high cost of living and dehumanising poverty levels many Zambians are grappling with;

2. The high increments of electricity tariffs and electricity connection fees which has worsened the cost of doing business, increased deforestation as most people are now resorting to charcoal as they can’t afford electricity, worsening the climate situation and increasing the disease-burden.

3. Reduced Government spending on critical social sectors such as Health, which has in part, led to critical shortages of medicines and medical supplies in our clinics and hospitals countrywide. This has led to increased disease-burden, reduced economic productivity and unnecessary loss of lives. Government hospitals have turned into Consultation centres where people just go to get prescriptions.

4. Giving foreign mining companies TAX HOLIDAYS at the expense of local businesses and the general auctioning of Zambia’s mineral rights on PINYOLO which has largely contributed to the collapse of the economy, specifically on the Copperbelt, a weakened Kwacha, high youth unemployment levels, reduced liquidity in the economy and the general poor economic performance.

5. Tightening of the Monetary Policy Rate and increased Statutory Reserve Ratio which has wiped out liquidity in the economy as the ability for banks to lend has been reduced while interest rates on loans has remained high making loans expensive and unprofitable for businesses.

NB: these are but just the first set of conditionalities that IMF has imposed on Zambia, the next set includes the privatisation of strategic state assets and companies such as ZESCO. In fact the process to privatise ZESCO under the guise of ‘Restructuring’ of ZESCO.

5 COMMENTS

  1. UPND is not different from PF. Local businesses are denied tax refunds nd their money is used to pay tax free salaries to good for nothing members of parliaments, the shameless extortionists. President is busy cutting deals with inestors from South Africa, Britain and USA. Every action of theirs is being evorded. Come 2026 all thieves will go behind jail.

  2. I can offer to rule Zambia for free just volunteer work for 2 years as a President on a independent ticket…then you will see how I will transform Zambia… number 1 priority will be getting rid of chibolya,Kanyama and chawama and build low cost houses along kabwe road and relocate people from affected kombonis…
    Cabinet only 6 ministries…merge all the duplicate or triplicate ministries….we have ministries doing the same thing under different names…..like Ministry of Home Affairs should merge with Ministry of Defense and Security……Ministry of Finance should merge with Ministry of commerce and trade…..information and broadcasting Ministry should merge with Ministry of sport
    Etc

  3. Thieves in suits cause more destruction and misery to their unsuspecting victims because their actions not only rob you of your assets but follow up with emotional destress from lies based on their complex jargon. Zambians should start collecting evidence to make sure these plunderers and their beneficiaries are convicted and put away for a long time.

  4. They honest people because they have done exactly what their sponsors told them upon ascending to power.

  5. This total confusion and pandamoniom,never in the zambian politics did we ever had such a political party.No road map,they can not walk the talk, too much lies. Were honestly are they taking this nation.We are totally lost as a nation.They are inclined to people who did not vote for them.Their policies are ant zambian.CDF is a flop,fuel is a circus all sectors there is pandamoniom.Ministry of Agriculture will never stop exporting mealie meal at the expency of zambians mmmmm kkkkk kuntumpa uko.

Comments are closed.

Read more

Local News

Discover more from Lusaka Times-Zambia's Leading Online News Site - LusakaTimes.com

Subscribe now to keep reading and get access to the full archive.

Continue reading