YOUR POLICIES ARE NOT SUPPORTING ECONOMIC GROWTH MUSOKOTWANE TOLD
21st November 2024, Lusaka
It is impossible to grow the economy with the unsound economic policies your government is implementing.
We have taken note of the recent statement by Minister of Finance and National Planning, Honourable Musokotwane, suggesting that the economy will strengthen by next year. However, as the Advocates for National Development and Democracy, we do not foresee any significant growth in the economy next year or in the near future. This is due to the fact that the UPND administration continues to implement economic policies that are detrimental to the domestic economy.
Recently, the Bank of Zambia raised its Policy Monetary Rate (PMR) from 13.5% to 14%. This decision further hampers economic growth, as it increases the cost of accessing financial resources within the economy. Consequently, the cost of doing business and production will rise, negatively impacting the economy.
With the PMR now at 14%, domestic economic activities, especially within small businesses and key sectors such as manufacturing and agriculture, will continue to contract. This is harmful to our economy.
Given the increase in the PMR, Zambians should not expect the economy to grow.
Low productivity, reduced export volumes, high costs of doing business and production, and an ongoing energy crisis have contributed to the continued depreciation of the Kwacha, which is now trading at K28 against the US Dollar. The weak exchange rate is another major factor hindering economic growth.
While Minister Musokotwane may continue to make political claims about economic growth, the reality of key economic indicators, such as the exchange rate, reveals that he is not implementing effective economic solutions or managing the country’s economic affairs with prudence.
Furthermore, the International Monetary Fund (IMF) recently downgraded Zambia’s 2024 growth projection from 2.3% to 1.2%. This downgrade is a clear indication that the Zambian economy is heading in the wrong direction. It should serve as a wake-up call to the government that their current economic policies are not fostering growth.
As the Advocates for National Development and Democracy (ANDD), we believe it is crucial for the Minister of Finance and National Planning to convene an Economic Indaba. All relevant stakeholders, including civil society organizations, the church, economic and development experts, and other progressive groups, should be invited to discuss and find solutions to Zambia’s economic challenges.
Samuel Banda
Executive Director
Advocates for National Development and Democracy
I totally agree with Dr. Musokotwane. The economy will start growing next year. The reopening of the mines that were closed will make it possible. In addition to the old mines that have started operating now, there are new mines that have opened. The economic for Zambia are good. What we need is to take advantage of the development to see what we can do to benefit from the mines.
I hope you are not just missing tuma sitting allowances at those indabas you are suggesting. We must not degenerate into a nation of talk shows, most of which have nothing to show on the ground. incidentally, your insinuations may be implying that Musokotwane and his team don’t know what they are doing so they need your acumen. Sometimes keeping quiet is a wiser option.