THE International Monetary Fund (IMF) has rated Zambia among the top four high-performing African countries, with a projected influx of US$10.4 billion from exports compared to the US$900 million it earned 10 years ago.
Minister of Finance and National Planning Situmbeko Musokotwane said at a press briefing in Lusaka yesterday that according to IMF projections on the response of African countries after the financial crises of 2008 and 2009, Zambia is rated among the top economic performers after Angola, Nigeria and Sudan.
“This is an extremely good performance considering that in 2000, Zambia had export earnings of less than US$1 billion, but in the last 11 years, the country has been able to improve tenfold, and we can use these resources to undertake economic infrastructure rehabilitation and development projects across the country,” he said.
He said in terms of projected growth, Zambia is again within the league of countries expected to grow economically this year at 6.8 percent.
DrMusokotwane says the country’s economy has made major strides in foreign direct investment, which has made it possible for Government to increase the amount of funds it can borrow for infrastructure development.
He said Government is also receiving money from mines in form of higher mining taxes and mining tax arrears from 2008 to 2010, which was not envisaged in the 2011 budget.
“Aside from that, Government was also selling bonds worth US$500 million and all this money will go towards the rehabilitation of urban roads in Libala, Chilenje and Kabwata in Lusaka and also towards infrastructure development in other parts of the country,” he said.
Dr Musokotwane said anyone making statements that road rehabilitation projects and other developments are being carried out at the risk of the country slipping into debt is not aware of the improved economic position the country has achieved.
“The indebtedness of a country and its ability to service that debt should not be seen at the level of nominal results; that is not correct. Look at the so-called debt to GDP ratio, how much debt you have, compared to your ability to pay back and you will see that Zambia is earning enough income to pay back the debt,” he said.
He said it is not true Zambia cannot finance its debt.
“Critics should not look at the amounts being spent but also at the ability of the country to pay,” he said.
Dr Musokotwane said in terms of Foreign Direct Investment, IMF estimates that Zambia would receive over US$1.5 billion in 2011 and a growth of over US$1.7 billion is projected for 2012.
“Those wondering where the money to service the development is coming from should be aware that all these factors, plus the resources Zambia is collecting from the mines in form of taxes, put Zambia in very good position to undertake development projects,” he said.
He said those criticising infrastructure development, rehabilitation and construction of roads should realise that improvement in a country’s economy is always reflected in better schools, hospitals and access to basic necessities.
In 2008, mining companies had a dispute with Government over corporate taxes, variable income taxes and mineral royalties but the matter was resolved and the mining companies are now paying arrears.
“The arrears the mining companies are paying have created extra revenue which has been channelled to infrastructure development and rehabilitation of urban roads,” he said.
President Banda recently commissioned the Lusaka urban roads project in all townships in the capital, which is expected to cost K300 billion.
The 162.2 kilometres stretch of the roads to be rehabilitated in Lusaka will cover Mandevu, Matero, Kanyama and University of Zambia townships.
Other townships include Northmead, Kamwala, Chipata, Zingalume and Kasupe townships as well as Ibex Hill suburb and the Lusaka International Airport road.
Other major road rehabilitation projects are being undertaken across the country.
[Zambia Daily Mail]
You are so obsessed with believing anything and everything the IMF says and prescribe for you. How many times have the IMF & World Bank given juicy economics outlook about Africa in general & Zambia in particular and all comes to zero? Please wake up!!
This makes sense of macroeconomic analysis viz aviz Zambia’s ability to pay. Our Politicians need to minimize relying too much on history when commenting on economic issues as they are so dynamic.
You are so right and Musokotwane is the biggest culprit. He is always talking of the past. What he does not realise is that the past had its own challenges which are different from the situation he finds himself in. He belongs to the old school of the those people who upon assuming office rubbish all things their predecessors did.
The reality is that the fiscal position of Zambia has improved due to increased inflow of revenue. The ability to service debt has improved and the debt is well below 3% of GDP. The country needs to leverage its income and channel the resources to develop the country and more important to diversify into other productive sectors such has tourism and agriculture on a more productive and commercial basis.
Zambia need to be the new hub of development in Southern Africa and we sure are on the right direction. The good Dr should continue is good work…. most Zambian are too DULL to understand Developmental Economics….. its never been done in 90 Days
If RB can do all those project in less than a month, what can stop from doing them in 90days?
Can they at least stop selling those bonds, surely the windfall tax, and increased tax from the high performing copper prices should be enough
Can they also do an audit on RB when he leaves office, i.e his net worth (Assets and Liabilities) he declared at the start of his presidency compared to his net worth at his tenure, he must be able to substantiate his capital growth and how much of his capital growth was subject to income tax.. surely ZRA must have records of his tax returns
This is great news. Facts are Facts. No matter how you try to spin it, Facts are Facts and are there for everyone to see.
This shows that the MMD from 2001 till present has been the best performing MMD since independence. The RB administration alone has outperformed any other administration in the history of Zambia, delivering unprecedented levels of growth and development to all corners of Zambia. Their performance has been unmatched and they proved themselves with the way they steered the economy to even achieving growth during the global financial crisis.
This however does not mean all of Zambia’s problems have been solved as there is still a lot to be done but we are moving in the right direction. Development is not something that happens abruptly, it is a process.
Facts are facts RB or his government does not determine the commodities prices on the London Metal exchange, only a retard will fail to squeeze out some meaningful development give such positive global economic drive… don’t insult us if they had half the brains they could have done way much better.
USELESS,THIS IS A FAKE CAMPAIGN STRATEGY.DON’T DECEIVE PIPO.
Well who cares, the country is full of thieves, and as such all the influx of money is being taken under the tables?
Remember people. Even here in Scotland there are more Blacks in jail than whites,Inveraray Jail prison has those statistcs than make me wonder If at all it is something most Blacks are born with ie theft, desperate measure if you ask me. Even those famous Blacks Musicians, Actors (wesley Snipes) all of them they are in jail because of theft, trying to steal money from the public ie not paying tax why? Why do we set a bad precedence, It makes me sad. I know my children will be mixed race, I just pray the live pure live by God’s grace, become rich, marry caucasians and do not make the mistakes that we are accustomed to. Corruption etc. Thanks
@ Mushota
Do you have issues against the likes of Martin Luther King, or Kwame Nkuruma or Nelson Mandela and Thabo Mbeki?? or should i bring it closer to home have you heard of Dumbisa Moyo i assume you are literate and follow current affairs!! do you think you will be less negro if you are married to a white person?? What Africa is going through is what Europ went through in the middle ages, we are standing on a watershed that will define the destiny of the continent we need bright young minds with the ability to see through the poverty and say there is hope.
Guess that makes Winona ryder black…..corruption is not a black thing. Its all over the world. In fact the corruption is perpetrated by european countries and businesses who take advantage of African leaders greed to advance their cause
The problem with you Mushota is you never respond to counter arguments. 6.1 and 6.2 here have politely engaged you with very well articulated counter arguments for your beliefs, but as always you’re mute. You amuse me with how you hate the black skin to the point that all failures to you are a result of been genetically predisposed for them. You’ll die a very unhappy person.
The MMD team of RB, Musokotwane., Mutati, and the award winning Caleb at BOZ is a serious one. They have managed to make the country creditworthy and there is now capacity to raise revenue for the much needed development. Sure they are riding a bit of good fortune with the favourable price of copper, but there is no denying that the economy is on the mend. I hope they are given another five years.
Still I do have concerns about corruption and the capacity to deliver all these projects. As a nation we have been quite poor at doing so in the past. Also more should be done to empower Zedians. In particular, capital formation from the profits in the mines, tourism etc.
#3&4. If yr neighbour who is very good in economics( and also interested in your wealth) comes to you and say your income is going to improve 10 fold this year, will it be wise for you to start borrowing against projections? If we are going to earn such money I think it is wise just to work on a cash budget to develop. But this is not my worry. My worry is if you look closely at the way we are living today. It takes hours to reach our work places due to congestion but yet there is no mention on how this will improve. The government is busy grading dusty roads in compound to gain voters at last hour. Where were all these billions being talked about today? and all these projects? What guarantee do we have that these will continue after election. Wont RB go back to his hobby as tourist?
I hear you the term we seem to be missing is PROJECTED GROWTH, and projections done by the IMF not by the ministry of finance, of course the see the improved commodities prices they just want a chunk of that lend you the money and hit you with the interest.. are trying to get back into the highly indebted category again??
Bwana Minister, most Zambians are extremely dull, they wont understand these things, but thank you to the few of us who understand and see these things are happening. MMD yamu yayaya chabe. Sata, continue to be an extra large lie only in opposition in the next 5yrs again.
Now do yu still want to give glencore time to explain their misdemenour mr Minister, Anyways magande was fu.ckin better than you Frog!!!
Musokotwane should go and address people in Gwembe , Chilubi Island, Chavuma, Katete, Kalabo etc that Zambia is among the top 4 performing African countries if Musokotwane will not be stoned. Where on earth can you have a top performing country or government that fails to collect garbage, fix public transport, and street vending? By the way which IMF is this? Is it the one headed by Khan the rapist? Are people who even still listen to IMF? Does Musokotwane know that IMF is run by lobbysts who can say any just to please you so you can bootlick more?
One gets the impression that Musokotwane is running the economy for the IMF.
This is great news. I feel sorry for people like #11 always harping on the negatives instead of trying to build on the successes. Zambia is still a poor country but it is less poor than it was years ago. That is process. Not every problem can be solved overnight, not even in 90 days. Well done MMD administration. Keep up the good work as there is still a lot of work to be done. Any govt that brings us food security deserves my vote.
Whether we are top 4 or number 1 it doesnt matter to me i m taking a risk this year by voting for PF it is about time we started experimenting with leaders so that we can end this nonsense from the MMD which is way past its usefulness.
Yes the Dull ones see development as useless…………what i can say for those who seem to have an understanding of these issues will appreciatre the econ omic strides the country is making however we should not be cheated to say this is the best at the moment the country should offer. We should be taliking of improved storage facilities for the bumper harvest better marketing facilities for export and let alone reduced meali meal prices which will directly influence the pricing of commodities thereby having an effect on the masses around. I will support infrastructure development because i know i be able to settle in the Sesheke area if they can provide me with transportation when the make roads accecessable.
RB and his govt have made strides but we can do better.
My observation is that the term development is being discussed differently by various bloggers. If by development we simply mean improving something from its previous state, then whatever is going on IS development. However, if we talk of economic development, then issues of job creation (quality and quantity), sustainability,etc and above all improvement in peoples quality of lives come into the equation. Some of the projects being undertaken do not certainly meet the criteria in the later “definition” and hence the failure by some to see this development. E.g. Mobile hospitals are not sustainable. It is not neccessarily being dull as such. You are right, government can do much better than this.
The Zambian people get fooled so easily by statistics that dont make sense at all.The IMF and World bank primary interest is in making the European and the West keep grip on the global economic powers not making Zambia progress.Anyone stupid will believe their cheap talk,for me they dont even have a morale reputation for normal pipo to have faith in their words.They are a disgraced entity to me full of scandles including sexual ones.
Argh!!!!!! please give us a break Mr Musokotwane, are we supposed to be happy because someone in NY during his lunch break entered a few digits in his laptop and now reckones Zambians should having having 3 square meals. My word! how some so called ‘Doctors’ think is me.
#16 ……………..beyond me..
Zambians are really taken for granted,the governement keeps feeding figures to the poor and some people its normal.The award winning Caleb ! my foot,you travel around the world and you will see what development means.If you drive in cairo and chachacha and you think thats the way to go then you are doomed and damn foolish.Zambia is no better than it was 15 years ago,the kwacha has never been so weak like it is now,and you say Caleb(BOZ) is the award winning! Award winning for being a damn embersel.
Visit your neighbours South Africa and look at the road network and highway infrastructure, need i say more??? and we have been independent for the past 47 years??
This is fine – but lets move on and improve on the ratio of middle class citizens in the SADC region as recently reported. If we are such top performers we must engage in middle-income behaviour like our high performing neighbors. Yes, Angola has a distinct middle class around 13% just behind RSA… We are beaten by Namibia at about 8.9%, coming in at around 5%… Nigeria can be ‘regionalised’ in its performance, so the complexity is there. Zambia, on the other hand is a boon for investors and a challenge for its citizens…
By the way, can some financial wizz kid quantify for us the value of what we have earned today compared to what we earned 10 years ago. This is just so as to put things in analytical perspective. We are fond of quoting figures in the absence of value and present reality…
Ofcourse our economy is the best performing economy for foreigners! We do not doubt that. What we want is for the citizens to be at the centre of this so called best preforming economy instead of being on the periphery as the case now. Musokotwane is corrupt and must go to jail without any delays upon the rise of the new government. RB will follow suit for his ZAMTEL affair with Dola, and the mobile hospitals will see to it that we lose the key to his cell!!
Translation please?
We are measuring GDP and nothing else here
ITS USELESS IF ITS PEOPLE CONTINUE TO SUFFER … PEOPLE CANNOT “EAT” GDP, CPI, INFLATION, ETC.
You cannot tell your children how well you farming or business is doing and expect them to satisfied if they are going without meals.
This is not a subject ofr PF muppets to debate about. They are so daft.
THERE IS NO FAINESS IN DISTRIBUTING THE DEVELOPMENT. WHAT ABOUT OTHER VILLAGES SUCH AS KAUNDA SQ ROADS,MTENDERE ROADS, AVONDALE ROADS, MISISI JUST TO MENTION A FEW. THESE ROADS HAVE BEEN IN A MESS FOR DECADES
WOKE UP YOUTH. SHAPE YOUR DESTINY. THIS IS THE TIME
Only when the cost of living for ordinary citizens is lowered and people’s salaries increase will all those figures make sence.
Never mind the spellings
Hooray – we are in the same league as Sudan!! It will take another 15 years to reach RSA’s level.
GDP – is this 1911 or 2011 which schools of economics do you people claim to have gone to? GDP is just a measure of how the economy is growing nothing more nothing less. it does not give you the exact measurement of how people’s livelihoods are improving. even if i bring in stolen money the GDP will grow but is this expanding the choices of the masses, does this mean that the child who was walking 20kms to school is now accessing it nearby? answer me and answer me well. Bo Dr Situmbeko next time you address people please tell us in uncomplicated language that people are now being employed (real employment), the environmnet is not being harmed now at the expense of future generations, a zambian today is better off than in 1964. please spare some of us. are u also counting mobile clinics
And hunger is reducing too, blur, blur, blur! SAATAAA!!!!!
Financial and Economic statements are backed by figures. As long as Musokotwane is not telling Zambians how much debt they are accruing, who can believe his stories?. One day Zambians will wake up to a rude shock when they discover how much debt MMD has accrued. Copper prices are not stable and i am afraid thats the only source of revenue our country heavily rely on. The question is; can you base long term projects on the price of copper? Suppose the opposite happens how do you pay back debt?
Its Clear the blog is full of DULL Zambians who can not understand the Dr
Number 6 you make my blood boil with.I am sure you’d change your colour if you had a chance. I am proud to be black living.
Do you ever wonder why there are more black persons proportionaly in jail? Do some research on it and you will probably change your mind! Shame on you
So why not cancel the zeros from the millions of Kwacha and turn that money if real money and not toilet paper. K1.600 000 buys call time, what is this? K2.6 billion buys a 4 bed house.
Clean up and do proper business cut off the Zeros from the Kwacha
200.00 GBP = 1,567,808.76 ZMK
British Pound Zambian Kwacha
1 GBP = 7,839.04 ZMK 1 ZMK = 0.000127567 GBP Mid-market rates: 2011-06-08 16:38 UTC
600.00 GBP = 4,703,426.29 ZMK
British Pound Zambian Kwacha
1 GBP = 7,839.04 ZMK 1 ZMK = 0.000127567 GBP
2,000.00 GBP = 15,677,982.96 ZMK
British Pound Zambian Kwacha
1 GBP = 7,838.99 ZMK 1 ZMK = 0.000127567 GBP
Who does business like this? come get some people with brains and work out some numbers here
Bank of Zambia get back to work and sort those figures out
Chaps lets be realistic the Doc has really done alot for this country development cannot happen in 90 days like one fool says.Viva RB VIVA MMD.Whether they team up or not we are winning.Cobra porter cannot rule a country he shud go to mbeya.
mmmmmmmmdddddddddrrrrrrbbbbbbb20000000111111
If Zambia continues to believe what the IMF says, then we are digging another big hole as a country. The world economy is still very weak and we can easily find ourselves in another recession. European economies are falling and need bailouts and we are busy borrowing as if everything is fine.Very soon we will be back where we started,AS A HIGHLY INDEBTED POOR COUNTRY. This is the worst finance minister in the last 25 years followed by Nawankwi, to much theory they have forgotten the reality.
IMF – as wonderfully demonstrated by DSK – shafting Africa(n) in any way possible. Economic growth through money created from thin air guaranteed by actual physical resources.Yes, You are a resource.Isn’t it wonderful how our betters use words to make us believe we are anything but slaves. Anyway, you zambians in your pseudo intelluctual armchairs can anal-yse this latest output from another empty suit who gets told what to say and do by …. yes you guessed it -IMF/World Bank. Believe man! You are still colonised but hey what’s a man to do when he can just watch Jersey shore as he sips a beer while keeping the other hand busy. To all you apologists for economic enslavement – may the chains of slavery weigh lightly on your necks asyou gnaw on the bones thrown by your leaders.
Peace!
#41, Situmbeko is one guy who knows his stuff….he is far from being a politician as those who know him will tell you, that Phd bwana Steve, is VERY REAL!!! Anyway back to the thread…its nice to read some positive things once in a while. I would be more chuffed if we could translate these reported “improvement” figures into something tangible like the “arrest” of the spiralling cost of living and the mad rate of personal indebtedness hard working citizens are now plagued with.
In the USA there is something called the “first 100 days” to measure the performance of every new President elected into office. Sata says measure my performance in the “first 90 days,” and people are confused by that?! Which one is better, the first 90 days or the last 90 days—TAKE YOUR PICK!
As for the IMF projections, be careful with these international organs who seem to care only when their proxies are doing well in these third world economies. KK learnt a hard way with these folks in the eighties. By the time he realised it, it was too late. As the saying goes, “FOOL ME ONCE, SHAME ON YOU. FOOL ME TWICE, SHAME ON ME!” So bwana Minister, be careful with some of these rosy projections coming from the IMF, World Bank, and the like. A small but robust cash budget is better!!
Wow LT! what is wrong with the word F.OO.L!!! I think you are going to far with your “word cencership” software. Not every time this word is used is in a nagative way!!! Now you have destroyed the maening in an inocent saying @44.
The growth of the Zambian economy is largely due to high copper prices which is an external factor that can not be attributed to any local politician in Zambia. In fact, going by the profits generated from mining alone, Zambia should be among the top 3 best performing economies in Africa. We are been robbed as things stand!
# 4, A PROJECTION IS NOT A FACT !!! Belenga ichisungu!!
What are MUSOKOTWANE’S own PROJECTION OF WHAT IS REALLY COMING INTO OUR COFFERS??? The man won’t seem to enlighten us any time soon!!
The PROJECTION IS GENERATED FROM EXPECTED COPPER EXPORTS, BUT YOU KNOW WHAT?? WE NO LONGER OWN THE MINES – So MAJORITY OF THE PROJECTED IS MONEY TO BE EXTERNALISED BY THE MINING COMPANIES, so Musokotwane & your MMD STOP BULLSHIT.T.ING US once & for all!!!
B/U,L.L.S’H”I.T”T.I.N.G. is the word LT
The problem is not the statistics but that these statistics do not change the life of the ordinary Zambian hence they are useless and remain only a tool for academic purposes for which Musokotwane has a doctorate in. When you talk, talk about how a Zambian in Misisi, John Laing or Chibolya now has better access to health facilities, clean drinking water and good sanitation. Talk about how a farmer in Chadiza, or Chiwoko village now has easy access to the market for their agri produce. How has life for the villager in Shang’ombo improved. Otherwise just restrict those figures to your discussions at Marlin restaurant as you eat your steaks and sip on that fine whiskey.
What is the mmissing link with all these nice developmental issues coming up? Our govt is failing to link the Macro economic developments to micro economical development through sound policies which addresses the following, since what benefits the ordinary people is expanding the micro from the macro acheivements,;
1. Meaningful labour policies which protects employees….social protection
2.Harvesting all the taxes out of these investments in order to have funds for service delivery
3.Deliberate policies to lower the lending rates in a country for locals to borrow
4. Restricting flow of cash out of the country. Meaning what should leave is the money declared as profit after tax at the end of the financial year, this way the economy has more money to lend to locals
Its sad to see most bloggers contribute nothing or shallow comments.i wud rather keep quite than contribute on something i do not fathom.dont be like mushota -ichikulu ku landapo.
There is nothing to boast about development projects. Its like you are talking to kids in a kindergarden. Its the responsibility of govt to deliver development. If its PF or UPND in power development has to be delivered. Ba Dr. Musokotwane changing is coming and start packing your bags to go and run your quarry and block making business. Is that waht we call manufacturing. You need to be serious
Well done bwana Minister! Even the “blind” can now see that the Country is heading in the right direction. We thank God for President Mwanawasa (who was woken up at midnight to be offered the job – for initiating the development), and for RB (who was recalled from the farm – for continuing with the vision). Aluta Continua!!!! Indeed, leadership comes from God. No man can undo what God has decided. WOE to Chiluba and Sata!!! (I shudder to think where the Country would have been by now, should these two gentlemen continued to lead the nation???).
Zambians we must stop living in the ‘Theories world’ and be realistic.If Tomato is still costing the same,bus fares and fuel costs are either increased or the same what part of the Economy is growing fast??If you are taking care of your children better,why should it be your neighbor to come and say it that your children are enjoying?Zambians should have been the same ones to tell the world that we are not complaining,Why come to impose growth on us???we must see it and say it ourselves.
okey #6 Mushota, if you too are black then maybe you should be in a Scotish Jail! And for your kids being mixed (or ma coloured) in the UK there are still called black…so they will end up in jail.
Your argument are just plain shallow, the fact that the jails are filled with more black in Scotland is maybe because the blacks are not wanted in a whiteman’s country! or bytheway that includes your mixed race kids!