The termination of the contract of the Bank of Zambia Governor, Dr Denny Kalyalya, with immediate effect by President Edgar Lungu comes at the wrong time and will have huge negative repercussions for macroeconomic stability.
Dr Kalyalya and his BOZ team were the opiate doses for a critical ill Zambian economy. Beyond a certain level of pain, opiates and other painkillers are ineffective. The patient is then exposed to excruciating pain and death.
On several occasions, we had warned against the overstretching of the monetary policy tools in tying to respond to structural and fiscal policy failure. By 2013, it was already apparent that the Zambian economy needed deep fiscal consolidation. All signs of pending economic stress were ignored. It was business as usual. By 2015, the situation was getting out of hand and various variables pointed to policy intervention that would ensure pro-poor growth whilst working towards macro economic stability. We provided suggestions on many occasions as to how this could be achieved.
All this advice was arrogantly ignored. We further warned the Zambian cooperating partners that they were also failing to read the pending economic disaster awaiting the country. They all sheepishly gave in to allow President Lungu pursue a corrupt and ruinous policy that was meant to secure him and the PF the 2016 General Elections!
Once on this path, there was no return to sanity. The economy was on autopilot. Four years later and with the 2021 elections pending, monetary policy tools have been rendered irrelevant to effect drastic change.
Dr Kalyalya is by far one of Zambia’s finest economists. He understands the potency of monetary policy tools but is also clear about their limitations. Much more important, he is a sober and objective personality. These are qualities lacking in most Zambian economists. His appointment as Bank Governor was always seen as a panacea to the otherwise misinformed and rogues policies of President Lungu’s regime.
However, it was just a question of time as to when frustration would set in. Ironically, President Lungu lost the patience instead. The President wants to win next years elections at all costs. Even if this means a total destruction of the Zambian economy. Dr Kalyalya therefore had to go. He had become a stumbling block in an evil machinery that is destroying the entire Zambian society and economy.
To Dr Kalyalya: Please take a well deserved rest. You have served your country diligently and with a lot of civil courage. The Socialist Party appreciates your efforts – even if at times we never agreed with some of the policy decisions taken by your team.
To Presidemt Lungu: macro economic instability will be your ruin and that of your government. You have destroyed the Zambian economy in the shortest period of governance. The termination of Dr Kalyalya comes at a time when COVID-19 is causing economic havoc to an already depressed, high debt economy. You have mistimed and this will have huge negative impact on the financial market for months to come. As expected you continue failing our country where and when it matters most.
Dr Cosmas Musumali
General Secretary and First Vice-President of the
Socialist Party
The piyefool regime is a cursed one. Nothing is right in the country.
Edgar Lungu is a humble fool and we shall arrest come 2021.
PF must go!
Edgar Lungu and Piyefool baleya, let them ask for safe exit and they must not resist because it will be a sad ending for them.
They must never bank on security wings because the allegiance of these security wings changes within half a second.
PF must go!
Covid 19 cases are increasing and the government health team is led by a corruption accused minister who in the least if not suspended, could have been moved to another ministry, like Religious Affairs and National guidance where the IN tray is always empty. No. Lungu doesn’t think like that. He fires the Central bank governor at a time of great economic uncertainty. The bank of Zambia has managed to keep inflation low under a mad fiscal policy of a chipante pante government. Anti Covid measures are not working because the very people who are signing them off and healthcare workers are getting sick.
Socialist Party, the party of mad people and dreamers
Good at articulating issue but put them in positions they become mangwams.
Oh so there is a right time to get rid of someone when they are not meeting objectives? I thought it was at the time when they have failed to achieve targets. Socialist dreamers
Just like oil cannot mix with water, socialism cannot mix with an open market enonomy. The ideas being propounded by the socialist party are for them to implement if and only if they form government. PF is a pro poor party and it is only on that basis that it should campaign for re election next year’s I. And it was on that basis that PF formed government in 2011. I would say leave us
alone with our ECL and our mixed economy. Socialism has been tried before and it has failed. when you divorce your wife, don’t go back. Akabwelelo, kalalya. Zambian is doing extremely well in terms of infrastructure development country wide. These corruption allegations are all fake and targeted at senior politicians. No wonder they have failed to secure convictions. Real corruption is at lower level in…
Oh so there is a right time to get rid of someone when they are not meeting objectives? I thought it was at the time when they have failed to achieve targets. Socialist dreamers. When the president acts you complain. When he doesn’t ati he is useless.
Oh so there is a right time to get rid of someone when they are not meeting objectives? I thought it was at the time when they have failed to achieve targets. Socialist dreamers. When the president acts you complain. When he doesn’t ati he is useless.
Lusaka times well done for beem the worst website on earth
I think PF is just provoking Zambians so PF can justify importance of those riot trucks bought from metal scrap yard. Turning Bank of Zambia into a bar is simply provoking.
Lungu is a list cause! He fires people that do their work in desperation. The corrupt, looters murderers, armed robbers and thugs are left to rean terror freely on the citizens. That is Lungu for you the amble one. Still leaving in a bubble thinking he is popular and can win an election. He is busy campaigning for UPND. Seer1 is working and now everyone can see.
ECL wants a Governor of BOZ who obeys orders. When the Governor is ordered to Print Money for example he must do so without asking questions. Zambia is in an Election Season and therefore needs a loyal Governor of BOZ. Dr Kenny Kalyalya had become arrogant and disloyal to the elected Authorities. So his departure should not surprise anybody becoz he was no longer fit for purpose. Good riddance!
Nshansha nabekele balawa
This guy was printing money secretly!!! Let him deny!!
Left-of-centre stuff, sadly, rather stale these times.
Kalyalya’s mistake was a technical one. A central bank governor even worldwide is not supposed to fan negative sentiments about his own economy. Stakeholders pay attention to each and every word that says. He is a big factor in driving economic perception. Such positions should only be occupied by professionals of high integrity who not sabotage their own institutions.