Cabinet has deliberated on the growth prospects and the need to restore the Gross Domestic Product (GDP) growth on an upward trajectory in 2019 and over the medium term.
In view of the prevailing economic environment the country is going through, President Edgar Lungu called for an urgent Cabinet Meeting on Monday, 27th May 2019 at State House to get a full brief on the state of the economy and to decide on measures to be taken to restore the macroeconomic stability, restore debt sustainability and ensure that growth is restored on an upward trajectory for the benefit of Zambians.
Finance Minister Margaret Mwanakatwe has told Journalists in Lusaka that Cabinet took recognition of the domestic and external factors that have negatively impacted on Growth.
On the domestic front, the Finance Minister said cabinet noted the negative impact of climate change that has affected agriculture and electricity production and the tight liquidity conditions.
On the external front, she said cabinet noted the impact of the trade war and uncertainty around BREXIT.
“As a response to these developments, Cabinet undertook to:
- to indefinitely postpone the contraction of all new non-concessional loans in the intervening period; to cancel some signed but undisbursed loans; Increase the control and management of disbursements on foreign financed loans; and, reduce the deficit to induce lending to the private sector.
- Treasury directed to issue strict guidelines so that no Ministry, Province, or Spending Agency should contract goods and services without availability of funds even if it is budgeted for to stop the accumulation of arrears.
- to hasten reforms at ZESCO Limited and the conclusion of the cost of service study by the ERB that has been delayed.
- renegotiate unsustainable power purchase agreements so that the sector does not become a contingent liability on the fiscal.
- to ensure continued investments in the sector to overcome the energy deficit over the medium term.
- designate the Ministry of Development Planning as a focal point lead in the implementation of the diversification agenda for better accountability.
- reducing fiscal deficit to sustainable levels.
- hastening legal reforms such as the enactment of a new Public Procurement law to ensure value for money.
- Ministries asked to improve on contract management.
Treasury was directed to ensure that the measures above are implemented expeditiously to facilitate the sourcing of external funds to finance critical expenditures in the 2019 budget that are required to support growth.
On the Exchange Rate Developments, the Finance Minister disclosed that Cabinet deliberated on the factors affecting the volatility of the exchange rate that included high and lumpy demands for foreign exchange in the market, strengthening of the US Dollar and sentiments emanating from concerns on the macroeconomic developments.
Mrs. Mwanakatwe stated that in dealing with these issues, Cabinet noted that the actions on the macro-economic front, the fiscal and the debt will be cardinal.
Giving an update on the Reserve Accumulation, Mrs. Mwanakatwe stated that Cabinet discussed the need to build up international reserves and address the higher demand for forex vis-a-vis supply in the market.
“To address this issue, Cabinet agreed to address in the short and long term the lumpy demands on items such as fuel procurement in the market and to slow down debt service through the measures to be taken on debt,” said Mrs. Mwanakatwe.
Cabinet further directed an enhanced implementation of the decisions of Cabinet by the civil service especially those related to expenditure and revenue. These included
- measures on strengthening commitment controls to avoid arrears accumulation,
- implementation of land titling,
- dealing with the challenge of smuggling including fuel,
- the decision to put measure in place for the orderly sale of Mukula
- the implementation of the Telecommunications Monitoring System for excise duty
- the timely undertaking of programmes and projects by the civil service
- the need to hasten the dismantling of arrears to address liquidity challenges
- the Ministry of Finance and IDC to hasten measures taken on improving the performance of State-Owned Enterprises.”
Mrs. Mwanakatwe emphasized that Cabinet took note of delays in implementing some of the previously taken decisions and directed that all Ministers will now be allocated tasks and associated timelines to ensure effective implementation.
She concluded that Cabinet deliberated on the emerging problem of fake news and negative sentiment that is having adverse impact on the economy.
The Finance Minister further emphasized that cabinet urged Ministers to increase communication and provision of information to the public to provide facts that will facilitate decision making in the economy.
She said cabinet also noted the impact of the increase in debt service payments on the budget and the need to reduce this expenditure, the build-up of domestic arrears and the tightening of liquidity on the domestic market.
“In order to address these issues, Cabinet directed that: the Minister of Finance to present to Cabinet at its next sitting a list of project loans to be considered for slowing down, postponing or cancelling. In doing so, projects that are of an economic nature will not be cancelled as resumption of growth is important to address the current challenges. However, management of disbursements on these loans will be important. This will be in accordance with provisions in the contracts,” she further disclosed.
panicking.bring back our money you have stolen…
They lied 12 months ago that they were implementing austerity measures …the lies are catching up with themselves!!
Emergency dissolve of Cabinet would have been best. Liquidate the cabinet!!!
My name is Mushota. I live in Scotland.
You could say I am
Zambian because I was born there but I’m now British.
Thanks
BB2014,2016
Hehehehe ! This whole story is unbelievable ….so for some reason the PF government has never prioritized economic growth ???? And Voila! Suddenly an epiphany on what needs to be sorted .. and this is after how many years in office?? How can one deny that they are Chipantepante ??? GDP is not a switch you just decide to turn on or off be serious
Emergency Cabinet meeting with no mention of the KCM crisis? I support the view that a liquidator be appointed by court to liquidate cabinet. We are in a serious crisis!
Ha ha ha ha ha ha ha ha ha ha ha ha ha ha
“to indefinitely postpone the contraction of all new non-concessional loans in the intervening period; to cancel some signed but undisbursed loans; Increase the control and management of disbursements on foreign financed loans; and, reduce the deficit to induce lending to the private sector.”
Please tell us who has given you a loan? You have disbursed all loans and there is nothing …you think IMF will fall for your lies…realy laughable …did we not tell you? Where is that dingbat JUNIOR and Yambayamba “the neutral blogger”?
And we have a drunk and dull minister of Finance…..Just wondering who is charge of appointing and firing Ministers….thats why I like Trump….do the the job or have a nice…looks like Mwanakatwe is Rupiah Banda’s appointee
You wonder where the silly boys Kudos, Thorn in the A$$, Oval … etc are …what did we tell you small boys in 2011, 2015
As long as we have the empty head as chairman of the cabinet, Zambia is doomed. No acting of doing something will help.
I can not stop laughing every time I look at that photo …even the sick senile one is back from sick leave from RSA Bo Inonge.
Emergency cabinet meeting…As if something dramatic has just hit them! What have they been discussing in their ordinary cabinet meetings when the economy was slipping away from their hands? As long as chitotela’s ministry remains your Zanaco ATM and key economic positions are run by Aunty Dizzy, Alexander Chiteme, Yaluma and Malanji, you will be holding emergency cabinet meetings everyday until you are kicked out in 2021
These are the same things they said last year. So why are they trying to paint them as being new? This is a leadership that is full of empty words and “resolutions”, but no actions-except stealing.
Its funny that people think they can turn an economy around by “resolutions” and proclamations.
In my opinion this gives credence to my declaration that PF supporters are indeed mentally ill. This is the same sh!t about loans this drunkard said last year!
PF Cabinet administering medicine to the already dead.Surgery on a corpse. BaLungu kwena nomba elo mwalamona.
It’s not a matter of resolving. It’s about acting!
The current government is arrogant, incompetent and uncaring. Many Zambians have been singing about the dangers of contracting non concessional loans but this Government never listened. Today after causing so much damage to our economy they want to behave like these problems have just sprung up today by holding the so called emergency cabinet meeting. The only reason for this so called emergency cabinet meeting was to come up with some phony resolutions that would help them stay in power despite causing so much damage to many Zambians. They only think about themselves not us citizens.
We have tolerated jokers, people without principles and people whose only way to survival is being in Government to be leaders for a long time. It’s time to encourage Good men and women with principles to offer themselves for national service. Many of the people who are in the cabinet today have been failures in their own personal businesses only to become extremely successful after getting Governmental power. That is why they knee and beg for votes, it’s for personal survival nor service to us. #No more lies.
All these measures are total rubbish but an admission that Chakolwa Lungu ‘s PF has dismally failed to run our country ‘s economy. Finally what some of us have consistently said has happened.
What our economy needs to grow are;
– Lungu to stop stealing and fire all corrupt officials
– transparency and honesty
– qualified personnel not party cadres in decision making positions.
– political tolerance and acceptance of criticism.
– independent judiciary
– independent police force
– slim cabinet and civil service.
– targeted funding for industrialisation by reverse engineering and extensive research
– Sustained funding for our entire education system
– manufacture at least 65% of the products imported.
– Build both copper and gold reserves.
– export more of copper finished…
– export more of copper finished products like pipes and electrical wires than raw copper.
This is just the start.
Finally kusiya uchimbwi completely.
Uchimbwi Lungu asiye.
Obviously they’re only doing this for a show…pretending to be still in control of the economy… trying to close the door when the horses have already left the stable. A whole bunch of incompetent people, with a clueless leader called Lungu. If the PF were serious, they would’ve already asked Lungu to step down, like ANC asked Zuma to resign. But we the people will throw this clueless gang out of office in 2021. What a tragedy.
“Mwashibukeni ba pompwe” …the coffee is now rather cold.
Emergence cabinet meeting …really laughable…Reckless clueless nincompoops now the money has run out that’s when they start talking about cutting back..absolute folly indeed…its like a farmer who decides to put up gates when all his livestock has disappeared.
The horse has already left the barn.
The poor cow has been milked dry.
Its like its a sick joke …I mean measures like ” the decision to put measure in place for the orderly sale of Mukula” the exported over $80 million to China and recorded $800,000 on paper. They are really foolish people who are taking us for a ride.
Its like its a sick joke …I mean measures like ” the decision to put measure in place for the orderly sale of Mukula” the exported over $80 million to China and recorded $800,000 on paper. They are really foooolish people who are taking us for a ride.
Really this what was decided at the so called emergency Cabinet Meeting! We are in a serious crisis. Some measures that will restore confidence include reducing GRZ allowances, ministries and above all promoting stability and unity by among others facilitating national dialogue. With regards IDC the key problem is governance and failed management. President Lungu is really setting himself up for failure by not listening to other stakeholders apart from those in his close circles. A major cabinet reshuffle is needed to invigorate GRZ as well as a shake up in civil service and SOEs. Otherwise, the measures stated by Mwanakatwe will lead nowhere….
And they want to introduce Deputy Ministers and MPs staying in office till votes have been counted…really laughable …go and ask them why they want to introduce them? Reckless boneheads
If there was good governance, there would be no need for emergency meetings. Why emergency, were you asleep on the job? All the vices destructive to our economy have been happening before you eyes, and today you want to smear butter over our eyes, and you think we can buy this? Really annoying!
@Bernard Banda
I totally agree with you, however reshuffling the cabinet will not yield anything positive as long the head is till there. What we need is the whole cabinet including the head to be reshuffled.
“to indefinitely postpone the contraction of all new non-concessional loans”
This is NOT new, we have been told about this many time. Next point, please
Nincompoops are now lost in the wilderness, what a mess. In developed countries this cliché of misfits would have resigned already. Shambolic mismanagement at its worst. These are lost years indeed under this dead PF.
When I tell bloggers that a barfly like Edgar Lungu can not lead a nation let alone a cabinet…am sure even Chitotela was present with all corruption charges.
Ethnic cleansing must end.The president is being cheated.Sir they are using your name to conduct ethnic cleansing.Wake up before its late
Keep making excuses for him like he is a child…my friend when it comes to war crimes those excuses dont stick in ICC…what does the lazy man do whole day in State House?
Who are they who cheat him on all issues? You mean he is just a Zombie? It’s him who evalutes and appen
In all honesty, most of these measures were outlined exactly 12 months ago in 2018.I penned an article praising the measures as the start of economic recovery but given all the negative economic indicators and now this statement,the austerity measures were not implemented.It is sad that most of us are now tired of advising as there is simply no political will to accept independent advice and implementing it.I foresaw all this economic mess in my articles and I was insulted by some especially one chap in USA who pretends to be a know it all and just criticises and never writes his own analytical article to advice.Read my articles again.
Anyone offering an alternative view is considered an enemy.As intelligent people see the ship sinking shallow minded people will support anything and even signing the death warrant of the country and calling it PROGRESS
I concur with you my brother,,,,the guy you referring to is..a so called “Mumba Sr.” today he is in hiding because things are worse in Zambia and cannot put his dull head up. PF supporters please OPEN YOUR EYES FOR ONCE. Our country is in a very serious economic turmoil. Only situation is to vote wisely in 2021, VOTE in HH.
Whatever is done cannot be supported by the UPND danderheads and sycophants above unless it’s the Supreme leader HH of the UPND under taking the measures…how pathetic .If we can all work together the ruling party and the UPND as well as Independent people the country can easily achieve its intended purpose.
Fwanya – Was it not Hakainde who was telling you that borrowing was unsustainable didnt you call him a noisy fooool…Fossil Chikwanda is on record for calling us lunatics. I mean what is there to support when there is no money how can you save when you are indebt…in fact this is not a bill its measures they are imposing themselves that’s why they called an emergence meeting of reckless foools.
Way to go…let negative critics continue with what they know best….condemning everything.
Negative critics told you to stop borrowing not you refused
You are mentally ill, it is understood that you will make no sense like your PF.
We have heard all this before;
‘Dismantling arrears in order to address liquidity challenges and slow down debt service through the measures to be taken on debt’.
The exact HOW is always missing. It’s all a waffle of intentions – do they ever evaluate and measure whether these plans are actually being put into practice and what impact they generate?
What solutions can dander heads from PFoools come up with, the ido!ts are just too dull, useless kaponya’s and drunks, only good for stealing.
These are carefully planned noises targeted to hoodwink majority of illiberality Zambians. You will be reading or hearing a lot of them. Maybe ECL has now discovered some wisdom. Sorry it’s too late now, you have already bankrupted the bank.
Emmergency cabinet meeting?? dont make me laugh. First sell the private jet and then Zambians will take you seriously.
I keep wondering what our colleagues in support of this government see that some of us are not seeing. Your leaders are acknowledging the fact that all is not well. My message to PF is simple, stop being pre-occupied with winning elections, do the correct thing and save our country
They are mentally ill please. Seriously that is the only logical reason I promise.
These Cabinet decision points are too general they can mean anything.By the time they are concisely defined and given action time lines,we will be in 2020.The civil service on whose shoulders these tasks are lumbered is badly under-resourced, demotivated and even traumatized.It is in urgent need of reforms itself.I also doubt some Ministers capacity to explain and lead on these decisions
MuZambian – they think they are smart people …you will soon hear that Auntie Maggie is in Washington DC in the coming days so she can say look what we are doing…they have no integrity whatsoever.
Where have these guys been for the last 3 years.
Why have they not taken the economy seriously? Has it been lack of vision?
Most of these measures should have been easy to do three years ago. Why do we go back a forth on energy reform? Will they also adjust the tariff accordingly?
How come the President does not seem to be getting briefs on the state of the economy?
Why is there no mention of supporting the local private sector and easing the cost of doing business?
Why can’t they just partner with the IMF?
@standard
What honorable Mwanakatwe is in effect saying is that this emergency cabinet meeting was necessitated by climate change,the trade war between the US and China and BREXIT.Do you believe that?
The Kwacha was the first to react! The Kwacha is not convinced and has since jumped from 13.10 to 13.65 soon after the cabinet resolutions were published!
The Kwacha would have appreciated if cabinet said the following:
1. Cut Salaries and allowances of the president, vice, ministers and members of parliament!
2. Reduce the number of Cabinet Ministers.
3. Replace the KCM liquidation with Administration to restore investor confidence to increase Investment in Copper production.
4. Revert back to VAT and abandon the SGT!
5. Remove import duty on concentrates and get the Smelters running again,
6. Overhaul the Cost Structure of ZESCO, Make it Lean and Efficient!
7. Refinance some of our debt to reduce repayment amounts.
Reality check. Welcome back from cloud nine. Uwafitala aimwena umwine.
Emergency cabinet meeting? Obviously means emergency resolutions, but who will implement them? I mean who in that cabinet is capable of implementing anything? Are these not the same guys who have been making the decisions which have brought us to where we are? If they did not see where they were taking us, have they modified or replaced their eyes, given that brains cannot be improved overnight without first going to school for a number of years?
And until recently, driven by inbreed tr!bal !mbecility, YOU been supporting them?
It is too late now to complain. Enjoy the ride in to “unprecedented development” of poverty and destitution for next decade or two.
@ Jay Jay… I think that’s an old picture, as it says ‘file’. I don’t think bo Inonge is back.
There no difference between an empty tin and an ill weak senile lady who should be retired instead of robbing taxpayers!!
*empty chair
The only tragedy here and the reason why this PF bunch cannot be forgiven, and posterity will judge them harshly for that, is that they nearly handed over power to Trib.al Hacks. But the consolation is that trib.als can never rule this country until they go back to 2006 and shed off their trib.al skins.
So Gay Jay trib.al, tekanya, you are heading nowhere with Trib.al, much as you love your Lazy… kikikikikikiki …. if you doubt me come and see me in December 2019 at my farm deep in dundumwezi republic.
“Houston, we have a problem”
An impressive gathering of the brainless
Kikikiki … lol
Sata was right!
He left us his useless bunch!
It’s really a brainless bunch!
Not surprised by the abscence of the usual pf cadres here, they are quick to comment and haul insults on anything opposition and usually have nothing productive to say about the economy.
You are right! Where is the chief boot leeker, when sh1t hits the fan?
B.R. Mumba goes into hiding when stuff like this happens. He’s a huge hypocrite.
This is reality check. This BOMA calls for an emergency meeting and like a magician , the solutions are all there in power point presentation.
Have these guys woken up from drunken stupor or what. While the common man has been suffering they were playing pool and getting drunk instead of running the affairs of the country.
Drinking on duty . This is a denti kubeba govt. No press conference. They dont take questions because they have no answers.
Cabinet minister can’t corrected economy. Honestly lusambo.Kampyongo.magie.
Unless the agenda in Kambwili.
Let technocrats from BOZ and Commerce and Finance and Justice ministry meet.
Not street hustlers and drunken masters
Ooookkkyyyeeeee. ….
Is this when you are waking u from your hangovers with lungu and you spending
binges ????
REVIEW ALSO THE GOV CONTRACTING OF SERVICES AND GOOD FOR YEAR 2018 AND SEE WHAT YOU CAN SAVE IN YEAR 2019
ITS A SIMPLE REVIEW OF THE PROCUREMENT TO SEE WHO IS CONTRACTING WHAT FOR WHAT AND AT HOW MUCH WHAT DOLLARS SERVICES AND CONTRACTS WHERE COMPETITIVELY DONE OR SINGLE
Informative, well-versed articles, but the advertisements on lusakatimes are the worst
Try do something about it. : )
Time to be honest with ourselves is now especially those in leadership positions. On the domestic front, Is it really those issues HON. finance highlighted? I tend to disagree. Stolen monies are not banked but instead kept under mattress devoiding the economy the liquidity.
Come on BOZ chief is quoted speaking about Money deficit in the market, Why? Be honest with yourselves and I shall show you the way saith The Lord.
What GDP growth with all the thieves crooks and swindlers in cabinet. Really laughable.
People warned about Debts and Reserves but PF Bloggers were busy cheering.
Now its EMERGENCY MEETING?
I was waiting for them to list currency depreciation as their strategy for cheaper (over time) fixed debt re-payments, I think it goes first u ditch ur bonds secondly, ur currency depreciates then thirdly u pay less back to your debtors.
I like this quote by Rahm Emanuel “You never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.
There as an early review its time to correct and sail through this 2019 without throwing away the growth and fiscal plans
Which “growth and fiscal plans” you are blabbing about?
After much deliberations within my mind, I have concluded how cabinet can achieve these objectives. My solution is His Excellency should not be allowed to travel around and address “his” people. For it is during his rallies that he loses it to impress “his” people and directs ministers to spend unbudgetted for money. Same as Chilufya Sata. If you don’t quarantine His Excellency up in srate house don’t expect any of these austerity measures to work. Cknsider them as oipe dreams. We should protect His Excellency from the likes of Gay “Lazy” Jay trib.al and other trib.als.
This conversation is clearly beyond your intellect, this isn’t about opposition politics anymore, the economic consequences of this incompetent PF government are real and the victims are beyond tribe and political lines. Stick with topics that involve insulting the opposition because you do well that way.
Hehehehe
Cader ….awe mwe
Quarantine lungu ….hehehehe
Just quite defending the indefensible
A mindless tr!balist !mbecile at work
Ukupelelwa like the fish in the drying up pond.Lesa atumfwileko uluse .
A little too late .,….
HH has been calling for the same measures, you told us he is bitter and everything is under control ?
now you are realising the economy is in ICU …..
The bottom line is Zambia needs more manufacturing like that SIVENDA plant that makes light bulbs…..owned by Zambians so profits are not all externalised.
Pencils , pens , cigarette lighters should all be made in Zambia
IT SOUNDS AS IF IT IS A CABINET MEETING OF A WAR TORN COUNTRY! WHERE WERE THE MINISTERS FOR THINGS TO REACH A STAGE WHERE YOU START CANCELLING SOME LOANS? WHY DID YOU UNDERTAKE PROJECTS WHOSE FINANCING WAS NOT PROPERLY DONE IN TERMS OF SOURCE OF MONEY? ZESCO IS HAVING PROBLEMS BECAUSE IT IS ALLEGED THAT IT HAS A LOT, IF NOT ALL PF CADRES ON ITS PAY ROLL; THIS IS WHAT HAS BROUGHT PROBLEMS TO THE ONCE VIBRANT COMPANY. JUST REMOVE ALL CADRES FROM THE ZESCO PAYROLL AND IT WILL BE VIBRANT AND PROFITABLE AGAIN.
#36.1 Mafikizolo, you are just a trib.al and nothing will cure you from that. And Zambians don’t elect trib.als to rule them. What I keep saying is that trib.als are NO OPTION for this country, are you so thi.ck a trib.al that you cannot get this into your thi.ck tri.bal sk.ull?
Now back to the topic, cabinet forgot one thing didn’t they? Yes of course, stop the Pres.idential Empow.erment Fund. How much have they spent on that and what are the results of this botto.mless pit? If it has a budget only they know it . Nothing but a sheer fucn waste of resources. Totally unacc.ounted for too, show me the accounts.
There you go, being good at what you do, hurling insults.
FACT: is am not Tonga, am 100% from the North East.
Am a reasonable Zambian, a common sense Zambian.
#40.1 Mafikizolo, You must be a tri.bal, where did I say that you are tonga or that tongas are not good people? I have never doubted that tongas are good people like any Zambian. I condemn trib.als not bembas, tongas, luvales, namwangas or any of the other beautiful Zambian cultural groupings. But I know someone, a trib.al who hates nsengas, those are the trib.als that I am referring to …… kikikikikikiki …..wanyala?
Mafikizolo trib.al, What I campaign against are trib.als who say ” if you can’t speak our language how are you going to work with us when we are ruling”. Can everybody learn all 72 tribes languages in Zambia? Isn’t English our official language and the reason why it is so?
#40.1 Mafikizolo, nothing you do or say will cleanse your trib.al god, he should start by apologising for what happened in 2006, he must become our beloved Mazoka, not window dressing with trib.al and insulting running mates.
Did Cabinet discuss Chitotela. Did they discuss the reintroduction of the office of Deputy Ministers?
Deputy Ministers will help stop corruption.
Chitotela is key to sustainability in infrastructure development.
Mama Zambia as long as we are still with these guys we are lost as a nation no hope.
These are always the results of power falling in wrong hands,i end here.