PSDA CRITICIZES IMF’S $184 MILLION APPROVAL FOR ZAMBIA

PSDA CRITICIZES IMF’S $184 MILLION APPROVAL FOR ZAMBIA

By Nelson Zulu

Private Sector Development Association Chairperson Yusuf Dodia has criticized the International Monetary Fund’s -IMF $184 million approval for Zambia, calling it an “exercise in optics” aimed at confusing economic development stakeholders.

Mr. Dodia has questioned the logic behind borrowing from the IMF when Zambia’s daily export earnings range from $30 million to $50 million, rendering the IMF funding equivalent to just three days of export income.

He argues that IMF conditions, such as increased taxation on small and medium-sized enterprises -SMEs, mobile money transfers, electricity, and fuel, undermine economic growth by placing additional burdens on households and businesses.

Mr. Dodia notes that the Kwacha has appreciated by 20-23% between late June and July, suggesting that the focus should be on sustaining this trend by increasing exports rather than relying on IMF funding.

In an interview with Phoenix News, Mr. Dodia says Zambia should focus on harnessing its export earnings to achieve self-reliance rather than depending on IMF loans.

The IMF has agreed to disburse $184 million to Zambia, bringing the total to $1.55 billion that Zambia has received under a 38-month IMF program due to end in October, after agreeing to expedite reforms to boost economic growth and collect more taxes..

PHOENIX NEWS