The 2016 budget presented on the 9th October by the Minister of Finance carries an appropriate theme (“Fiscal Consolidation to Safeguard our Past achievements and Secure a Prosperous Future for All”) but is neither bold nor realistic. It is a deceptive budget that is camouflaging the dire economic reality of the Zambian economy.
Given the economic crises the country finds itself in, the expectations were to see more realism in the macro-economic objectives as well as bold decisions in economic sector policies, revenue and financing. As things stand now, the 2016 budget is far from being “crisis responsive”, it is “business as usual”. (more…)
Zambia is today facing one of its worst economic crises since independence in 1964. The indications are that this crisis is just beginning and will deepen over the next 6 months:
- The Zambian kwacha is under immense downward pressure – reflecting both external developments (U.S. dollar strength and lower copper prices) as well as domestic factors (growing fiscal deficit, depleting government deposits, unstable fiscal regime, unprioritized spending, high levels of corruption and the electricity crunch).Over the past 4 years monetary policy, through the Bank of Zambia (BOZ), has overstretched itself in containing inflation and trying to stabilize the Kwacha. With low reserves at its disposal, the options for BOZ have narrowed down. (more…)
President Edgar Lungu’s declaration of October 18, 2015 as the day for repentance, prayer and fasting, throughout the country borders on blasphemy.
The greatest danger facing Zambia today immanent from President Lungu himself and those surrounding him. In less than 9 months of his presidency, his PF party has antagonized a whole ethnic group (the Tongas) through unbridled arrogance and sheer lack of respect.
The president himself continues to threaten all those exposing his dismal performance with death and “crushing”; he does not even hesitate to blackmail citizens exercising their constitutional right to vote for political parties of their choice with denying them developmental benefits. (more…)