What a Way to Start the Year 2025
Amb. Emmanuel Mwamba Reflected
EXCHANGE RATE; K28.3
Utter resistance or refusal by the mines to participate in the implementation of the Bank of Zambia’s Export Proceeds Tracking Framework, among other factors, has continued to cause a volatile foreign exchange market.
This initiative was designed to ensure transparency in tracking foreign exchange earned from exports through creation and establishing of mirror local bank accounts for export proceeds.
This initiative would have bolstered the availability of forex on the domestic market and strengthened the kwacha.
Other factors include the unfair tax incentives and unjust tax exemptions granted to the mining sector.
INFLATION RATE
Inflation Rate in Zambia increased to 16.70% in December from 16.50% in November of 2024.
The Inflation Rate in Zambia has averaged about 11.06 percent from 2005 until 2024, reaching an all time high of 24.60 percent in June of 2021 and a record low of 6.00 percent in December of 2011.
The inflation rate currently at a multi-year high, primarily driven by a severe drought that significantly increased food prices and put pressure on the Kwacha.
RISING NATIONAL DEBT
A special session of Parliament was summoned in December to approve the revision upwards of the 2024/2025 National Borrowing Plans.
Zambia’s external debt has increased from $11.9 billion to $14.7 billion since 2011, while domestic debt has risen from K178 billion to K236 billion during the same period.
By comparison, the Patriotic Front found an external debt of $2.8 billion debt in 2011, which surged to over US$11.9 billion by the time they left office in 2021. This means that the PF borrowed $9.1 billion in ten years.
FOOD BASKET AND COST OF LIVING CRISIS
The Jesuit Centre for Theological Reflection (JCTR) highlights the rising cost of living in Lusaka, as reflected in the December 2024 Basic Needs and Nutrition Basket (BNNB), which increased to ZMW 10, 833.47, up by ZMW 440.31 from November.
Key contributors included price hikes in essential food items such as vegetables, kapenta, and mealie meal, alongside rising costs for non-food essentials like toilet paper and sanitary pads.
DROUGHT/FLASH FLOODS
The great rainmaker, La Niña, which comes after the drought-causing El Niño, is weak. A weak La Niña caused an extended dry period in November and December that has threatened seasonal crop failure. Most farmers have been forced to replant.
PETROL SHORTAGE
The importation of diesel through the TAZAMA pipeline has stabilised diesel fuel on the market. However the post-electoral civil unrest underway in Mozambique and the introduction of punitive transit tax of $21,000 per fuel tanker truck in Zimbabwe has caused stock-outs and shortage of petrol across the country.
The high price of fuel however remains of serious concern and is the main driver of the cost of living crisis.
LOAD-SHEDDING
ZESCO has continued to provide more media statements and apologies of faults than it supplied power.
As of December 30, 2024, ZESCO is spending around $90 million per month to import about 500 megawatts of electricity.
ZESCO’s power imports are primarily sourced from: Eskom in South Africa, EDM in Mozambique, and The Southern African Power Pool market.
The extended power crisis has significantly caused and contributed to the down turn of the economy recording a paltry economic growth rate of 1.2% instead of the projected 4.7%.
With ZESCO Managing Director Victor Mapani gone, the crisis to export electricity amidst the worst drought in a century, presented damage to ZESCO and the economy.
Like Minister of Agriculture, Reuben Mtolo, who kept on exporting maize despite a forecast of critical shortages, these costly decisions exposed President Hakainde Hichilema as slow to take action on critical matters.
HIGH PRODUCTION COST
Parmalat Zambia has joined many companies that have suspended or shut down production due to load-shedding, high fuel prices, terrible economy. Effective April 1, 2025, Parmalat will cease local production and close down the manufacturing plant that has been open since 1981 opting instead to import products from South Africa.
2,000 workers at Parmalat alone have been affected and will lose their jobs.
BY-ELECTIONS
Induced and caused by an obstinate leadership determined to destroy yhe Opposition. This purposeful wasteful expenditure demonstrates the insensitive, selfish and callous nature of Zambian politics.
CHOLERA OUTBREAK
Zambia experienced the worst cholera outbreak ever in 2023/2024 that saw the loss of 700 lives and over 20,000 people affected. Little water, sanitation, and environment projects have been done in affected areas to prevent another huge outbreak other than the Ministry of Health keeness to provide Guinea pig-like cholera vaccines.
HUMAN RIGHTS ABUSES AND SHRINKING DEMOCRATIC SPACE
The human rights situation in Zambia continues to be of deep concern, with abuses being perpetrated by state agencies, and a shrinking democratic space, lack of indeoence of the democratic institutions such as the Judiciary and an emerging dictatorship .
Significant human rights issues included credible reports of arbitrary or unlawful killings, including extrajudicial killings; torture and cruel, inhuman, or degrading treatment or punishment by the government; harsh and life-threatening prison conditions; serious restrictions on freedom of expression and media freedom, including violence and threats of violence against journalists, censorship, and enforcement of or threat to enforce criminal libel laws to limit expression; substantial interference with the freedom of peaceful assembly and freedom of association;
CORRUPTION
From the scandals in the mines and sectors, it is difficult to keep count of the theft and plundering being recorded.
The Financial Intelligence Centre (FIC) has reported the illicit flow of $3.1billion in 2024 alone.
Scandals such the 61 trucks, or 156 ambulances, the resignation of ACC Director General and subsequent dismissal of the ACC Board and the dubious award of K47billion to UPND cadres have literally shocked the country which expected President Hichilema to tackle the vice since he accuses his predecessor of engaging in corruption.
What happened, bwamba forgot to use his alias solola to post this ridiculous article????
Your role as opposition is (together with the ruling party) provide solutions to these challenges. It’s called collective responsibility.
You have so far not tabled any solutions or suggestions as to what can be done or implemented to sort out these challenges. Your role is NOT to start pointing fingers and saying “what about them?”.
Put aside your bitterness and misplaced sense of entitlement. No one owes you the good life and privaleges that you enjoyed when you were in power. Zambians gave you a wonderful opportunity to serve them. You as a party collectively farked up that opportunity. That opportunity will never come back. NEVER. So do yourself a favour and start appreciating the positive developments being made. Yes, things are not perfect, but let me remind you that things would be 100 times worse if you and Lungu were still in the driver’s seat. You defaulted not once, but twice on a kaloba you obtained using our name. Your misleadership would NOT have met the IMF conditionalities and Zambia would have been a basket case and the laughing stock of the world whilst you and fellow misleaders would have been enjoying the good life and not feeling the negative impact of your financial recklessness. So please spare us the finger pointing, sit down and reflect on the role you played in getting us where we are today.