Zambia Urged to Abandon IMF Deal in Light of Destructive Economic Impact

IMF Meeting
IMF Meeting

In a recent article published by PF Media Director Antonio Mwanza, he argues that Zambia should immediately terminate its deal with the International Monetary Fund (IMF) due to the detrimental effects it has had on the country’s economy. Mwanza highlights the key facts of the IMF deal, emphasizing that it is a loan and not a grant that Zambia will eventually have to repay. He also points out that the funds are primarily meant for balance of payment purposes and not economic development.

According to Mwanza, the IMF has imposed stringent conditionalities on Zambia, including austerity measures, negative tax policies, and the privatization of state assets. These measures have led to unbearable economic hardships, a turbulent economic outlook, and increased poverty levels in the country.

One of the outcomes of the IMF conditionalities, as highlighted by Mwanza, is the astronomical increase in fuel prices, which have risen from K17 per litre to K24 per litre in a span of just eight months. This has contributed to a high cost of living, impacting essentials such as food, transport, and rentals. Furthermore, reduced government revenue due to tax holidays given to foreign-owned mining conglomerates has resulted in significant losses in the mining sector.

The article also cites the reduced liquidity in the economy, caused by negative fiscal policies and limited lending by commercial banks, as a major concern. Escalating youth unemployment is another consequence of the IMF deal, as the private sector has been clouded out by the government’s failure to pay outstanding arrears to contractors and suppliers.

Mwanza argues that the IMF has failed to deliver on its promises to help negotiate debt repayment structures. Instead, the organization is perceived to be exploiting Zambia’s resources through destructive economic policies and conditionalities that worsen the country’s economic situation.

Mwanza suggests that the Zambian government should discontinue or terminate the IMF deal and explore alternative solutions. Mwanza proposes negotiating directly with creditors, addressing tax breaks and illicit financial flows, investing in processing and manufacturing, and boosting agricultural production to generate revenue. Additionally, the government must pay outstanding arrears to local suppliers and contractors, provide tax incentives to local businesses, increase transparency and accountability, and reduce wasteful expenditures.

Mwanza, in conclusion, urges the Zambian government to take decisive action and abandon the IMF deal. He emphasizes the need to prioritize the country’s own resources and economic potential, suggesting that Zambia can achieve prosperity by implementing sound economic policies, strengthening the private sector, and combating corruption.


  1. It is always sad when learned people either choose to mislead or offer superficial solutions. The proposed advice on how to heal the economy or manage the debt is equal to say, please don’t stay at home, look for work and live well to someone who is unemployed. Or to someone who is hungry, ” please go and beg and people will give you food”. Offering the obvious solutions that are far from reality. Next time please don’t borrow till we reach debt trap because at that stage, we won’t have control on the thinking of those we owe!

  2. Upnd especially that scruffy arrogant boy hh will not heed this cardinal advice. Upnd always want to be right because they think the sun shines out of their azzhole. Many of their members are unhappy with hh deep inside but because of tribalism they would rather publicly continue to lick hh azzhole. Fuseke

  3. Mwanza is very well known for abandoning Political parties, Projects and programs because he doesn’t take enough time to think and analyse issues. Very soon he will abandon PF.the way he abandoned FDD, MMD, and several programs. All what he should realize is that HH takes time before decisions are made. And that’s why he is consistent with his dealings. So mwanza, is just like a particle in the wind. No ba muselela kwakaba

  4. The problem we have with UPND is arrogance and having a one mans show. HH alone rushed to America and IMF before he even had a cabinet in place. We have been on the IMF road before that led to privatization in which himself benefited and a lot of people died. We do not have manufacturing Industries and do not own any mines because of IMF programs. If we are to go anywhere as a country we need to sit down with China and sort out the mining and agriculture sector. If we do not get hold of our resources IMF will be happy with us going around begging for bread crumbs the way we having been doing for the past two years. The result will be poverty and high cost of living. We will even fail to grow maize because IMF is already killing FISP.

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