NEW HERITAGE PARTY – PRESS STATEMENT
Is this a case of “Chimbwi No Plan”?
On 24th Nov 2021, the Bank of Zambia Governor announced an increase in the MPC rate from 8.5% to 9% and in the same statement proposed an increase of fuel prices and electricity tariffs. The effects of these proposed adjustments seem to go contrary to the UPND campaign promises of more jobs and a better economy.
Last week, we dubbed the UPND as the ‘United Party for National DISAPPOINTMENT’ with one of the key disappointments being the fact that they are hinging Zambia’s economic salvation on an IMF bailout. It is common knowledge that once engaged, the IMF begin to impose austerity measures, amongst them the removal of subsidies. This is what we are seeing with the proposed increases of fuel and electricity tariffs.
The increase in interest rates, coupled with increases in fuel prices and electricity tariff will hurt the pockets of every Zambian household. For businesses, it will mean less borrowing to invest in higher productivity and less employment as their costs begin to rise. These policies seem contractionary and counterintuitive to stimulating growth and liquidity in the market.
It has been 3 months of UPND in power and we at the New Heritage Party, along with many other stakeholders are still not clear with regard to the economic policy direction of this New Dawn Government. Their pronouncements and their actions appear to be at variance, hence the confusion.
As the New Heritage Party, our thinking is that the UPND could have focussed on reducing the exchange rate and stimulating economic growth through higher productivity, and lower costs of borrowing. We ask the question – is increasing the electricity tariff the only answer available to them – have they considered dealing with the serious in-house issues relating to ZESCO as a priority?
Does the UPND have any serious plans to put the country back on the right economic path? Is this a case of ‘Chimbwi No Plan’?
We continue to watch this space!!
CHISHALA KATEKA
PRESIDENT – NEW HERITAGE PARTY