IMF Downgrades HH’s UPND Government’s 2024 GDP Growth Projection to Economic Junk Status of 1.2% from 6.3% in 2021– Kasonde Mwenda C, EFF President
Lusaka, Zambia – November 13, 2024
The latest release from the International Monetary Fund (IMF), Press Release No. 24/413 dated November 11, 2024, reveals a stark and troubling reality: Zambia’s 2024 GDP growth projection has plummeted to an alarming 1.2%, down from the 6.3% growth we had in 2021 under the previous administration. This is one of the worst economic outlooks we’ve seen, second only to the post-COVID period. The IMF’s assessment reflects a nation on the brink, driven into economic disarray by President Hakainde Hichilema’s UPND government.
The IMF has clearly pronounced a deteriorated outlook for 2024, citing that real GDP growth is expected to be a mere 1.2%, down from a June projection of 2.3%. This sharp downgrade is attributed to severe disruptions in electricity supply and contractions in key sectors: agriculture, which has plummeted by 20.6% year-over-year, and electricity production, down by 9.6%. Non-mining, non-agriculture activities have also slowed significantly. This economic free-fall is marked by a troubling inflation rate of 15.7% as of October 2024, fueled by rising food prices and the continued depreciation of the kwacha. The inflation rate is now far from the target band of 6-8%, and Zambians are struggling to make ends meet.
As the Economic Freedom Fighters (EFF), we are compelled to urge the UPND government and President Hakainde Hichilema to face reality: Zambia’s economy is teetering on the edge of collapse, and this IMF downgrade is a resounding red flag. Such a severe downgrade will have far-reaching implications, eroding investor confidence in Zambia, driving widespread hunger, and deepening the grip of poverty on our citizens.
This crisis did not emerge overnight. It is the direct result of the UPND and President Hichilema’s failure to lead with vision. Their policies have prioritized Western interests at the expense of the Zambian people. They have burdened Zambians with excessive taxation, deprived them of electricity to serve external political allies, and mismanaged our valuable resources to the detriment of the country’s welfare.
Instead of strengthening our economy, the UPND government has weakened it through concessions that grant tax holidays to foreign-owned mining companies. These companies export our wealth without contributing to our national economy, leaving us dependent on IMF loans and subject to their demands. This mismanagement has led to a currency exchange rate of K27.81 per US dollar, making Zambia one of the most devalued economies in Africa and forcing ordinary Zambians to bear the brunt of staggering inflation and rising costs.
The EFF pledges a new direction. When we are entrusted with power in 2026, our focus will be on restoring the Zambian economy to health by prioritizing the interests of our people. We will realign productivity toward Zambians, not foreign entities. Our commitment is to shift the ownership of our mineral wealth from foreign hands to local Zambians, ensuring that the resources of this land benefit its rightful owners. We will rely on home-grown solutions and reject IMF programs that serve foreign interests, promoting self-reliance and stability.
Today, Zambia stands at a crossroads. We must not continue on the path of economic degradation laid out by the UPND and President Hichilema. I call on all Zambians to recognize the failures of this administration and to reject the UPND government. Embrace the Economic Freedom Fighters – a Pan-African movement with a deep commitment to Zambians. We will fight to restore dignity, prosperity, and hope to our country.
Zambia deserves a future that empowers its people, not one shackled by foreign dependency. Together, let us reclaim our economy, our resources, and our destiny.
Wherever we want to go our feet will take us there.
Kasonde Mwenda C
President, Economic Freedom Fighters – EFF