LUNGU’S PRESIDENCY IS UP IN FLAMES, INFLATION HAS OVERWHELMED HIM
President Lungu has been overwhelmed by inflation, it’s consumed his presidency.
The economy is up in flames and he continues to pour kerosene on the fire with desperate policies that are counter-productive.
The economic collapse we see today is a result of 6 years of economic mismanagement, reckless debt contraction and corruption.
There is no short term solution to this problem, the damage done is extensive and will take years to resolve.
In the immediate term, the new government of the UPND Alliance under the leadership of President Hakainde Hichilema will have to negotiate an IMF bailout to refinance the debt at Lower interest rates, and longer repayment periods. This will put less stress on the treasury and exchange rate and stabilize the kwacha, by also infusing dollars in the economy.
Other immediate term remedial measures will be to end corruption, end excessive borrowing, austerity measures to streamline and make more efficient the operations of government.
In the medium term the new government will need to resuscitate the mining industry and tourism to increase the inflow of dollars into the country to stabilize the kwacha.
In the long term the solution to this problem is local manufacturing to increase exports, reduce imports and create jobs for Zambians.