MWAMBA ON MUNGANDU
Thursday, 19th October 2023
Patriotic Front Member of the Central Committee and Chairperson of Information and Publicity, Amb. Emmanuel Mwamba has responded to Chama South MP, Davison Mungandu, who asserted that current economic and social problems facing the country would have persisted even if PF were still in power.
Media Statement
We have noted a media statement attributed to Chama South MP, Hon. Davison Mung’andu published in the News Diggers today.
The argument presented by Hon. Davison Mungandu MP is highly flawed and requires immediate response and correction.
UPND POLICIES
The UPND Government is pursuing liberal policies that are pro-foreign investors and pro-multinational corporations and will therefore yield little or no benefits for the people of Zambia.
ECONOMIC REVOVERY PLAN
The Patriotic Front Government launched an Economic Recovery Plan in December 2020.
The Economic Recovery Programme (ERP) 2020-2023 brought together a set of necessary multi-sectoral policies and interventions that were aimed at restoring and building-back-better the economy in order to deliver on the national priorities.
We urge Hon. Mungandu and others to familiarize themselves with the proposed solutions outlined in the document.
ON DEBT
Following a joint World Bank-IMF and Zambia Debt Sustainability Analysis conducted in 2019, it was established that increased borrowing by the Zambian Government to finance ambitious large capital expenditure had led to a sharp increase in external debt and a shift in the creditor composition from traditional creditors such as IMF, World Bank and AfDB to commercial lenders and the People’s Republic of China.
It was agreed by both parties looking at domestic revenue so far available, that the risk of debt distress for the country was high.
Therefore, Government began the process of debt management and restructuring of the $11billion foreign debt.
It halted further contraction of new loans and suspended some financed projects that were in the pipeline.
After a public tender process, Lazard Freres, a French investment bank, was hired on a $5m contract, to advise and help on the country’s debt restructure.
LAZARD was hired to resolve the foreign debt with commercial, multilateral, and private lenders while Government engaged in bilateral discussions with the People’s Republic of China for its debt with China.
GOOD TIDINGS BY 2021
The Patriotic Front Government had accumulated maize grain strategic reserves under the Food Reserve Agency(FRA) of 1.5 million metric tonnes and a harvest of 3.2 million metric tonnes in 2021-2022 harvest season.
Further, the crippling loadshedding was literally behind us as national power generation capacity was increased from 1,600 megawatts to 3,450 megawatts by 2020. National electricity consumption is only around 2,200 mega watts.
Further tax revenue from the mines had steadily increased following the policy change of making mineral royalty tax non-deductible in 2019.
Zambia was now earning an average of $1.1 billion in 2020 in tax revenues from the mining sector and a similar amount in 2021 through to 2022.
ZCCM-IH in collaboration with Bank of Zambia were now buying gold from artisanal miners to help formalise the sector and help form part of the Central Bank’s Reserves.
ZCCM-IH was also tasked to begin mining at Kasenseli Gold, and a special purpose vehicle company was formed for the gold mine finds that were being discovered everyday across the country.
Further, the concentrated and decade-old public investment done in building roads, bridges, clinics, hospitals, dams, airports, and upgrading or building power generation stations, provided a strong base for national development.
Further, the measures implemented in the mining, agriculture, and energy sectors would have provided a better Zambia than now being experienced.
The prices of essential foodstuffs and foods were far fairer than now where the inflation rate is said be at 12%.
PF’s crimes to why it lost elections were but peripheral; hooliganism, cadreisms, use of the Police, arrogance, etc and the failure to attend to those peripheral issues established a negative perception against the Patriotic Front by citizens and affected the outcome of the general elections.
PF will probably be a government that will be remembered as a party that lost elections and power, NOT because it didn’t work or deliver public service, BUT because it neglected to attend to peripheral issues like political violence and cadreism
I have no doubt that if PF were still in power, things would be 10 times worse than they are under UPND.