The 2025 Budget: Hopeless, Detached from Reality, and Lacking Practical Solutions to the Energy and Water Crisis- Kasonde Mwenda C-EFF President
28 September 2024.
The Economic Freedom Fighters (EFF) categorically *reject the 2025 National Budget delivered by Honourable Dr. Situmbeko Musokotwane, Minister of Finance and National Planning, on 27th September 2024, as utterly hopeless, detached from the pressing realities of Zambia’s economic and social crises, and woefully lacking in practical, innovative solutions to address the worsening energy and water crisis.*
This budget demonstrates a reckless disregard for the people of Zambia, offering nothing but hollow promises at a time when urgency and action are desperately needed. Instead of confronting our nation’s most immediate crises with bold leadership, the government has chosen to fish in the darkness, evading responsibility and leaving Zambians to fend for themselves.
A Failure to Acknowledge the Water Crisis It is alarming and disheartening that this government has failed to recognize the water shortage as the national disaster it truly is. While they attempt to address energy issues, the critical humanitarian crisis of water scarcity has been completely ignored. This government’s priorities are misguided; entire communities in urban high-density compounds have gone months without water, and the situation in rural areas—especially those hit hardest by drought—is dire, with rivers and wells drying up. Despite President Hakainde Hichilema declaring a national disaster, there is no mention, let alone a budgetary allocation, to address this unfolding tragedy.
*Detached from the Economic Realities*: The UPND government, led by President Hakainde Hichilema, is dangerously out of touch with Zambia’s economic challenges. While they boast of a baseless and fantastical *projected growth of 6.6% for 2025, they ignore the reality of a collapsing economy, which grew by only 2.3% in 2024, down from 5.4% in 2023.* This is not mere mismanagement; it is deliberate deception. Agriculture, the backbone of Zambia’s economy, is in shambles—farmers have yet to receive inputs, and the e-voucher system is a proven failure. Despite these facts, the government claims a magical agricultural boom is on the horizon—this is sheer insanity.
*The deceit extends to the mining sector, where the government peddles lies that the Copperbelt is on the verge of resurgence.* In reality, only *6 mines are paying taxes, while over 6,000 are on tax holidays,* siphoning profits out of the country and robbing Zambians of their rightful wealth. This is not just a failure of leadership; it is an act of betrayal.
*Runaway Inflation and a Crumbling Kwacha*: The 2024 budget deficit has ballooned to *6.4% of GDP from an initial estimate of 4.8%,* yet the government’s response has been muted and complacent. The Kwacha continues to plummet, with inflation reaching 15.6% in September 2024, up from 13.1%, and a 2.8% depreciation against the US dollar. The government’s response has been to tighten monetary policy—raising the policy rate to 13.5% and the statutory reserve ratio to 26%—but these have proven to be failed attempts at stabilizing our economy.
*Energy Crisis*: Darkness for Zambians, Prosperity for Foreigners Zambia’s energy sector is now in a historic crisis, with some areas receiving electricity for just 30 minutes a day while others have been without power for over 48 hours. Despite this national blackout, the government continues to export electricity while Zambians sit in darkness. Shockingly, there is no budgetary allocation for addressing this crisis. The government’s continued failure to address both the electricity and water crisis reflects an unpatriotic and criminal disregard for the well-being of the Zambian people.
*A Way Forward:*
1. *Empowering Zambians and Utilizing Our Mineral Wealth*
Zambia is blessed with immense natural resources, but under this government’s policies, our wealth is being siphoned off to enrich foreign investors, while Zambians remain in poverty. The EFF proposes the following practical, people-centered solutions to restore Zambia’s dignity and economic sovereignty:
2. *Productivity and Value Addition:*
The government must empower Zambians to own and control their mineral wealth. We demand a shift from exporting raw materials to local refining and value addition, especially in the copper and cobalt sectors, to create jobs and build a sustainable economy.
3. *Revenue Retention:*
The EFF demands that Zambia enforce strict revenue retention policies. Foreign investors must reinvest their profits in local communities, industries, and infrastructure, rather than exporting wealth abroad while leaving environmental destruction and poverty behind.
4. *Monetary Sovereignty*:
Zambia must regain control over its monetary policy by reducing dependence on the IMF. We must build foreign exchange reserves through smarter trade and mining policies, rather than resorting to unsustainable loans that mortgage our future.
5. *Support for Zambian Entrepreneurs*:
The EFF calls for low-interest financing and policies that reduce the cost of doing business. Local industries must be supported to thrive, not suffocated under the weight of IMF-driven austerity.
6. *Local Content Policy*:
It is time for Zambia to implement a strong local content policy that prioritizes Zambian workers, suppliers, and contractors in key sectors like mining. Zambians must be the first beneficiaries of their country’s wealth.
7. *Addressing the Water Crisis*:
The government must immediately provide relief water to high-density compounds and drought-affected areas. Water bowsers and emergency interventions should be deployed to ensure that Zambians have access to safe drinking water.
8. *Rejecting IMF Conditionalities*:
The IMF’s austerity policies are driving hunger and destitution in Zambia. It is time to reject these conditions that destroy our social fabric and economy, and instead adopt Zambian-centered policies that prioritize local interests.
*Conclusion*: Time to Put Zambia First
The EFF calls on the UPND government to wake up from its slumber. Zambia cannot afford to continue on this path of deception, incompetence, and betrayal. We demand that President Hakainde Hichilema and his government prioritize Zambian interests, implement practical solutions, and restore economic sovereignty.
The time for wishful thinking and hollow promises is over. Zambians deserve leadership that cares, listens, and acts—not a government that abandons them in their darkest hour.
Wherever we want to go our feet will take us there.
Kasonde Mwenda C President, Economic Freedom Fighters (EFF)
Give us one so that we can contrast, than those maire talks