PRESIDENT HH HAS SUCCESSFULLY SHUT DOWN THE LOCAL INFORMAL SMALL AND MEDIUM BUSINESSES
…. The economy is back to the colonial era, an economy for the civil servants only.
Issued: 11/03/24
To a large extent, the high cost of living in President Hakainde Hichilema’s government can be traced to two factors introduced by his new dawn administration namely;
1. Perceived mopping up of excess cash from the local economy (A hoax, by the way). By increasing the monetary policy rate (MPR) and the Statutory Reserve Ratio (SRR), President Hichilema has shut down the INFORMAL LOCAL SECTOR in one single blow.
Less money in local circulation has directly hit local small and medium businesses with very LOW SALES whilst the cost of doing business is equally increasing. 2 opposites in the same market.
The majority poor who depend on the informal sector can no longer AFFORD the basics such as mealie meal hence the cries in the compounds of njala! insala or hunger.
2. The fluctuating fuel prices. A closer look in the foreign exchange regime indicate that all the major convertibles are dancing to the song of fuel prices by the ERB.
This is extremely catastrophic in an import led economy with more than 80% of the products on the shelves of tutemba’s, groceries and supermarkets from outside the country.
As long as the dollar is dancing, all the Zambian’s will have to dance gule wamkulu to the high cost of living and doing business.
Solutions In Part:
3. Flood the local economy with money targeted at the informal for Zambian’s to have disposable income. (RB’s economics).
4. Monthly fuel price reviews must be stopped forthwith and replaced with only 2 price reviews in each half of the year, preferably in march and august respectively.
5. Incentivise small and medium local businesses to produce and employ more locals. Small and medium enterprises form the basis of the local economy. Right now they suffocated.
6. Encourage locals to spend more. When people don’t spend the economy suffers, a classical example of the Zambian economy at the moment. Modern economies grow through spending.
7. Zambian economy needs “new money” through taxation in the mining sector, agriculture and by removing tax holidays being enjoyed by multi- national companies (MNC’s).
Trying to develop with the current levels of taxation is getting into a bucket and trying to lift one’s self.
Silavwe Jackson
President
GPZ.
Jackson Silavwe, ask President Bola Tinubu of the Federal Republic of Nigeria what it takes to rebuild an economy of a country that was devastated by thieves of all kinds!!! You’re a little child in politics Silavwe!!
Flood the local economy with money? And how do you intend to do this? It is the surest way of introducing ranaway inflation which would be worse than the stagnant economy you are complaining about.
Ba Silavwe, you need to go back to the drawing board to come up with more workable solutions. Thank you for the effort.
Ba JMC, the problem is that our government has failed to come up with any solutions. Things are now a lot worse than they were before August 2021. And there are no measure in a place that can give us hope that things will turn around in 2 to 5 years. Remember that any real solution would take years for citizens to start seeing benefits. Despite the numerous trips abroad, and promises of incoming investment due to his trips, nothing has materialised. We are still borrowing a lot of money, and our civil service wage bill is now nearly half of national budget because Hakainde has employed too many civil servants on impulse, and then he blames PF.
My honest assessment is that Hakainde is totally clueless and incompetent, and not fit to be president. By the way, things will get a lot worse. My graphs are always accurate on these predictions, unlike his.