SITUMBEKO Musokotwane

Newly appointed Minister of Finance, Situmbeko Musokotwane says government intends to roll out the International Monetary Fund (IMF) programme as a strategy to dismantle the huge debt that the country has amassed in the last 10 years.

Dr Musokotwane said government is considering getting creditors to agree on stretching the initial period of repayment, as a way of mitigating the country’s debt crisis.

The Minister of Finance said the IMF programme, therefore, becomes a critical link to give confidence to the lenders who need an independent institution that will monitor what government is doing.

During ZNBC’s Sunday Interview programme last evening, monitored by ZANIS, Dr Musokotwane, disclosed that the IMF will also provide a longer and cheaper credit to Zambia.

“Yes it makes sense to get credit from the IMF because financing will come in cheaper and we will be able to assure the creditors and investors who would like to invest in Zambia as the IMF will give them confidence,” he added.

Dr Musokotwane stated that the social economic pressures that the country is currently experiencing, is as a result of excessive debt, a situation which urgently needs to be addressed.

“For every kwacha of the revenue that was collected, it was only used to pay salaries for service workers and paying back loans. The money spent in debt servicing is in dollars and led to the shortage in dollars that is why the price of the dollars escalated,” he explained.

Meanwhile, Economist Yusuf Dodia suggests that government must try and utilise the readily available resources in the county to pay back the loans.

In an interview with ZANIS in Lusaka today, Mr Dodia said it is not sustainable to get more debt when the country is in a debt crisis.

He said government must consider growing the economy based on exports such as copper and timber, as opposed to getting more loans.

“Currently, we are exporting about 40 million dollars of copper a week. The loan from the IMF is equivalent to one month’s copper exports,” he said.

2 COMMENTS

  1. Real solution when we harvest all the Mukula trees and sell the copper from Mopani and KCM for the next 6 months. All the debts will be paid and we will still make profit in billions of dollars. These companies are Zambian owned currently be UPND thinks of selling Mopani, KCM to the IMF, World bank vulture funds. ZAFFICO, KCM and MOPANI are our answers for settling the so called 20 billion dollars debt. Otherwise HH and Musokotwani are economic hitmen if they get IMF loans.

  2. IS THIS MOVE OF CONSIDERING TO CONTRACT A LOAN NECESSARY?

    IMWE YOU PEOPLE SHOULD SERIOUSLY CONSIDER LOOKING INTO THESE COLD DEPOSITS AND EXPLOIT OPPORTUNITIES.

    PERSONALLY I FEEL THIS ISNT A WISE MOVE AND I FEEL IT IS A TRAP BY THE IMF.

    WE ALL KNOW WHAT THEY WANT AND WE ARE SIMPLY GIVING THEM FREE ACCESS TO OUR MINES.

    YOU HAVE KASENSELI AND THE $3 BILLION IN THE RESERVES IS MORE THAN ENOUGH TO SET UP A GOLD PLANT IN KASENSELI OR MUMBWA.

    IT ONLY TAKES $3 TO $4 MILLION DOLLARS TO SET UP A HIGH TECH GOLD PLANT SURE.I AM NOT AN ECONOMIST BUT I REALLY BELIEVE THIS MIGHT EVEN BRING ABOUT DEVELOPMENT TO THE COUNTRY.

    ABOUT 2000 DIRECT JOBS MAYBE CREATED JUST IN KASENSELI ALONE AND THERE WOULD BE A REDUCTION IN THE LEVELS OF UNEMPLOYMENT.

    ALREADY ZAMBIA HAS GOT ALOT OF MINING FIRMS THAT HAVE BEEN STEALING FROM ZAMBIANS AND THE GOVERNMENT .CHEATING ON THERE PRODUCTION JUST SO THEY CAN DECLARE LOSSES AND AVOID HUGE TAXES.

    MAKE A FOLLOW UP WITH THESE MINES AND GET WHATS DUE.THESE MIGHT EVEN CLEAR THE DEBT THAT ZAMBIA OWES.

    I ADVISE THAT YOU VISIT THESE SO CALLED BIG INVESTORS AND INTERACT WITH THE MINERS ON THE GRASS ROOTS AND HEAR WHAT THEY ARE GOING TO TELL YOU. IN SOME MINES COPPER IS BEING DUG AS THOUGH IT WAS SOIL HENCE LOSSES ARE BEING DECLARED.

    COME TO THE NORTH WESTERN PROVINCE AND SEE THE KIND OF COPPER GRADE THAT THESE GUYS ARE MINING.HIGH GRADE COPPER IS BEING MINED YET THEY CLAIM ITS LOW GRADE.

    INVESTORS HERE HAVE CHEATED THERE WAY TO HEAVEN.HUGE AND UNDECLARED MINING MACHINERY IS BEING USED HENCE REDUCING THE ACTUAL PROJECTED LIFE SPAN OF THE MINES.

    TO BE HONEST, MAJORITY OF THE PEOPLE THAT VOTED FOR YOU (UPND) WERE CIVIL SERVANTS AND MINERS THAT FELT EXPLOITED AND ROBBED BY THE PREVIOUS GOVERNMENT AND ITS CROOKED INVESTORS SO IF YOU DONT THINK THROUGH THEN YOU RISK LOOSING THEIR TRUST AND CONFIDENCE.

    HON MUSOKOTWANI MUST WAIT TILL THE GOVERNMENT AUDITS THE ALREADY EXISTING MINES.LET THEM START DECLARING TRUE PROFITS AND UPROOT ALL THOSE ZAMBIANS THAT ARE IN MANAGEMENTAL POSITIONS IN THIS SECTOR THAT HAD KNOWLEDGE ABOUT THE EXPLOIT.

    PLEASE RECONSIDER YOUR PLANS OF BORROWING.EVERY CROOKED INVESTOR AT THIS POINT IS SCARED OF BALLY AND WHAT HE MIGHT DO TO THEM IF HE DISCOVERED WHAT THEY HAVE BEEN DOING WE THAT ARE ON THE GROUND CAN SEE AND KNOW FOR SURE.JUST INSTITUTE AN INQUIRY BWANA TWAPAPATA.THESE GUYS OWE US ALOT OF MONEY.

    WE SAW HEADS OF STATES SPENDING NIGHTS HERE JUST TO GET ILL MONEY.ASK ANY FRUSTRATED SHIMINE PA NORTHWESTERN THEY WILL TELL YOU.

    START UTILIZING YOUR INTELLIGENCE WING TO HELP CITIZENS NOT TO FIX THEM.ECL KNOWS WHAT I AM TALKING ABOUT.

    YOURS FAITHFULLY
    DISGRUNTLED MINER
    P. J. K

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