DR Fred M’membe is calling for an economic recovery programme for two to three years before Zambia can even start talking about growing the economy.
In his reflections on ‘Our very frightening economic crisis’, issued from Mwika Royal Village, Chinsali yesterday, the Socialist Party leader said Zambia’s debt was now around US $23 billion if domestic arrears, government guarantees, VAT refunds, external debt, local debt and money owed by state owned enterprises were added.
“We and our leaders, those governing our country, must realise and acknowledge that we are in a very serious economic crisis,” he said. “Our debt is now around US $23 billion if we add domestic arrears, government guarantees, VAT refunds, external debt, local debt and money owed by state owned enterprises. Now that the kwacha has depreciated by over 40 per cent, there is a corresponding reduction in the size of the economy from $25 billion last year to $18.2 billion this year. Which gives us the debt to GDP ratio of around 112 per cent and likely to go further up next year to between 115 per cent to 118 per cent.”
Dr M’membe said, “this is the reality we have to face”.
“We can try to evade this reality, but we cannot evade the consequences of evading this reality,” said Dr M’membe. “What we need is an economic recovery programme for two to three years before we can even start talking about growing the economy.”