Friday, June 14, 2024

M’membe criticizes UPND government for being operationally focused instead of strategic in economic recovery

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Dr Fred M’membe, the Socialist Party (Zambia) presidential candidate, has spoken out about the NAPSA partial withdrawals and the state of the Zambian economy. In a statement released on Friday, M’membe addressed the government’s lack of comprehensive economic recovery policy and strategy, and the potential negative impact of the NAPSA partial withdrawals on the government’s ability to function.

M’membe began by clarifying that he had not previously commented on the NAPSA partial withdrawals, stating, “What was published under my name was Fake News.” However, he felt compelled to address the issue, given the potential impact on the government and the economy.

He pointed out that NAPSA is an anchor investor in government bonds, and the projected 20 per cent partial payment of K11 billion would deprive NAPSA of the liquidity required to participate in government securities. This, in turn, would negatively impact the government’s ability to raise operational funding. M’membe noted that in the recent April 27 bond auction, the government only raised K636 million, which was a massive under-subscription, partially due to NAPSA’s absence or minimal participation.

M’membe also pointed out the negative impact of inflation, which had reached double digits despite assurances from the Minister of Finance that it was unlikely to do so. He said, “All this points to a lack of comprehensive economic recovery policy/strategy by Mr Hakainde Hichilema’s UPND government.” He criticized the government for being “in ‘fire fighting mode’,” focusing on day-to-day operational matters instead of developing a strategic economic recovery master plan.

M’membe called for a clear policy on agriculture, incentivizing domestic value addition, and bringing Mopani and KCM on board, among other things. He argued that the government needed to be more strategic and less operationally focused. “As long as the government remains operationally focused and not strategic, our economy is headed for doom,” he said.

M’membe also criticized the government’s inconsistent policies, citing the NAPSA partial withdrawals and the Bank of Zambia’s recent decision to raise the statutory reserve ratio in the market to stifle liquidity in the hope of taming the Kwacha depreciation. He asked, “So which is it to be? Decrease liquidity to tame Kwacha depreciation or increase liquidity to gain political mileage and appease the masses? What exactly is the policy direction?”

He argued that the fiscal side was canceling out or neutralizing the monetary policy measure, and that a balance needed to be struck between creating an environment for economic growth and managing inflation. He acknowledged that inflation may be negatively affected in the short term, but argued that “contracting the economy by reducing liquidity in the market is like removing blood from a patient. Achieving a single-digit inflation number is meaningless if the patient dies.”

M’membe concluded his statement by calling for a comprehensive economic recovery policy/strategy that addressed the root causes of Zambia’s economic malaise. “We need a government that is proactive, strategic and visionary in its approach to the economy, not one that is reactive, operationally focused and lacking in foresight,” he said.

13 COMMENTS

  1. A very wise comrade. Those with eyes and functioning brains will listen to this wise advice. Those stubborn upnd mangwams will continue to blindly support a guy who sold our parastatals for peanuts to get kickbacks

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    • Look at this Humpty Dumpty Troll based in the UK yesterday Fred was a fooool today he is a wise comrade…really laughable.

    • Kaizar Zulu, you are still stuck in the past. Don’t be lazy to read. Information about the sale of State assets is abound. Blaming individuals about the sale of such assets is neither a political strategy nor an act of patriotism. It is in fact a sign of ignorance.

  2. As usual another life could be lost today in the crocodile infested Lake Kariba where people go to draw water and are caught weekly by crocodiles due to successive governments failures to provide clean and safe water. And nobody talks about this issue which is a weekly event, not even parliament, nobody. And here you go again politicking as your daily bread which does not add any value to the life of Zambians

  3. Really laughable…advice coming from one Fred M’membe you wonder why he never used the same advice for running The Post Newspaper instead of letting accrue a huge tax backlog.

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  4. You have an opportunity to take a strategic approach in preparation o 2026 and we are waiting to understand the pillars of your campaign so that we can make an informed choice. This is an opportunity for you to share the details of your agenda in a simplified version so that you can attract the undecided voter and add to ypur numbers

  5. You have a choice.
    The UPND or HH is not forcing anyone to get the 20% napsa withdrawal.
    Individuals are free to make their own financial decisions.
    Thats the beauty of CAPITALISM

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  6. MEMBE BEING A TAX EVADER , DOES NOT QUALIFY TO TALK ABOUT ECONOMY IMPROVEMENTS, HE IS A POMPWE AS WRITTEN IN MALACHI

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  7. “We need a government that is proactive, strategic and visionary in its approach to the economy, not one that is reactive, operationally focused and lacking in foresight.” There is really no substance in these words. What exactly does Freddy mean in terms of practical solutions to Zambia’s economic ills? UPND can claim to be “proactive, strategic and visionary in its approach to the economy.” Meaningless rhetoric …

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  8. Total BS coming from M’membe .Where was this advice when PF were relentlessly downshifting Zambia’s economy for a whole 10yrs?

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  9. Those NAPSA withdrawals are meant to give the local economies a jump-start………..

    A common strategy used to breathlife into economic activity……….

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  10. Political games gaining momentum where are the rest of the PPS “POLITICAL PARTYS”Stand up!!!

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