Monday, June 17, 2024

Zambia’s Socialist Party President Expresses Concern over Worsening Economic Outlook

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Dr. Fred M’membe, the President of Zambia’s Socialist Party, expressed deep concern over the country’s increasingly worrying economic outlook. Highlighting the failure of a recent Bond auction, Dr. M’membe drew attention to the significant under subscription, indicating a lack of investor confidence in Zambia’s economy.

The Socialist Party President directed his criticism towards Mr. Hakainde Hichilema and his government, accusing them of pursuing an appeasement policy without considering the broader consequences. Dr. M’membe criticized the government’s decision to increase maize prices, asserting that this move would lead to a spiral effect on the overall economy, extending beyond the intended promotion of maize production.

While acknowledging the government’s efforts to address selling price concerns for suppliers, Dr. M’membe contended that they had failed to tackle the issue of high input costs, such as fertilizers and other farming necessities. He emphasized that by ignoring the impact on end consumers, the government had disregarded the profound consequences that would ripple through the entire agricultural sector, including increased prices for livestock products.

According to Dr. M’membe, the government should focus on addressing the underlying problems that contribute to low agricultural yields, such as the lack of mechanization at the peasant farmer level and the provision of extension officers. He further argued that the government should introduce smart subsidies at the production level to reduce the cost of inputs, thereby protecting the end consumer from excessive price increases.

Drawing attention to the broader economic challenges, Dr. M’membe lamented the absence of major economic activities on the horizon that could alleviate the current gloomy situation. He expressed doubts about the positive impact of the new fertilizer factory and raised concerns about the lack of details regarding the indicative selling price, thus questioning the overall financial viability of the project.

Additionally, Dr. M’membe expressed skepticism about the touted FQM billion-dollar investment, suggesting that its actual contributions to the economy have not yet materialized.

The Socialist Party President further warned that Zambia’s currency, the Kwacha, would face increased pressure against the Dollar once a debt restructuring agreement is reached. He noted that the country would need to settle arrears, along with accumulated interest, from repayments that had been neglected for almost two years.

Dr. Fred M’membe’s statement highlights the grave concerns surrounding Zambia’s economic outlook. He urges the government to adopt a more strategic approach to agricultural policies and calls for measures that protect the end consumer while stimulating long-term sustainable growth. As the country braces for the second half of 2023, Dr. M’membe predicts that failure to address these challenges adequately will result in severe consequences for the Zambian people.

18 COMMENTS

  1. Hon. Musokotwane recently said the economy will start improving after 2026. For now, expect nothing tangible. Everything is in snooze mode.
    “You’ll definitely see a positive change after our first term”.

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  2. They will try to pump money during election year to buy votes but the people will do donchi kubeba. Comrade mmembe is a force to reckon with. Let us bring him on board the pf alliance.

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    • Did Pf do the same in the name of enpowerment ??
      blackets, a sewing machine Cooking oil etc
      We used to this in Africa and expect it

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  3. Ba Fred don’t behave like Kamanga, just join happy Zambians.
    Ba Fred, why don’t you comment on Bacelona legends vs Zambia active footballers? We didn’t see bad economics in that stadium.

    • I wasnt there to see that Ronaldinho guy but how was the event? It sounds like it was a great success

  4. ba fred dont say against anything just because you’re in opposition ,otherwise citizens shall solidly regard you as…….

  5. please ba fred, dont say against anything just because you’re in opposition ,otherwise citizens shall regard you negatively

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  6. This Chap has to blog nonsense otherwise his sponsors will
    desert him, then he will join us normal mortals

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  7. This man just barks from afar like a toothless dog…he is not a socialist one bit give him State House today it would capitalist principles and dictatorship as he never forgives anyone. Ask him to go and take a photo with Lazy Lungu who crashed his newsapaper company and sold his assets!!

  8. The economy is always good when you are in the ruling political party. Whether Mmembe feels it or not; whatever political/economic system he’s in, his observation is spot on. The cost of living is extremely high. The cost of money was increased recently. You don’t need to like Member for you to take his word for it, but it shows everywhere.

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    • This a man who ran a company without paying tax because he was friends with Michael you was also in govt as he had surrounded President MCS at State House with his stooges from Post Newspaper.

  9. Zambia’s socialist party president. Can any other country’s socialist party express concern?

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  10. Fred Mmembe you’re a Politician so just sit down…your friend HH while in opposition used to sound like he is a genius…..imagine he has allowed mining in the lower Zambezi….a Politician is never to be trusted

  11. Freddy M’membe, the “lack of investor confidence in Zambia’s economy” is largely a result of vocal, empty-headed socialist ideologues like you. Most investors would not contemplate investing in Zambia lest their investments would end up being nationalized or expropriated if a socialist party was given the people’s mandate to form government. Private investors are not nincompoops. Learn to understand the reasons for the lack of investor confidence … it is you and Winter Kabimba. Anyway, the Zambian economy is on the upswing compared to the several years of PF administration.

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    • This is cheap thinking. The Socialists are not in power, so don’t blame them for the presumed lack of FDI. Are you saying H-H is failing because of Mmembe and Kabimba? Better resign. Let those with influence take charge.

    • @Mulongoti Machayi: investment is a long-term endeavour; the mere existence of vocal socialist ideologues signals the possibility that some day they are likely to gain power and ultimately nationalize or expropriate private business entities.

  12. The high volatility with the exchange rate together with low deposit interest rates make saving money in bonds with govt or even in the private commercial banks very unattractive to most. Most people will either buy USD or pump that money into the economy where it’s value will be translated in real everyday terms, however this alone will lead to inflation. This is why a stable exchange rate is of paramount importance. Why the govt is dragging it’s feet with KCM and not asking for even a grant from the US govt to help us is something I fail to understand. If our exchange rate was around $16.5 to $17 to the USD everyone would be rushing to buy bonds or to save but since it is so volatile at K20 now who is going to risk it again?

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