President Hakainde Hichilema has urged the World Bank Group to take necessary decisions and steps to help countries like Zambia avoid going into economic shutdown.
President Hichilema said there is need for the World Bank Group to make a decision on the Catastrophe Deferred Drawdown Option (Cat DDO) so as to help Zambia avoid an economic shutdown.
The Cat DDO is a contingent credit line that provides immediate liquidity to International Bank for Reconstruction and Development (IBRD) member countries in the aftermath of a natural disaster.
Mr Hichilema said climate change has brought a new dimension which the government did not fuse into its debt restructuring and sustainability programming , and has consequently affected the country’s 2024 growth projection of 4.7 percent.
President Hichilema was speaking when a World Bank team led by Regional Vice President for Southern and Eastern Africa Victoria Kwakwa, paid a courtesy call on him at State House.
President Hichilema explained that with climate change affecting energy and agriculture, there is need to make energy available for irrigation and food security.
“Our growth projection was that , this year we would go to 4.7 percent but with climate change, we are talking about two percent plus. The drought has injected two national risks , energy and food,” he said.
President Hichilema said the World Bank has a daunting task to help repair the damage that has been caused by climate change through the Cat DDO.
“There is a need to front load that project so that we can make energy available for irrigation agriculture, to avoid an economic shutdown by climate change whose damage may escalate to even the two percent growth made,” he said.
Mr Hichilema said the government’s key area in managing the drought effects and risks is energy, food, water and sanitation as well as education.
At the same meeting, Secretary to the Treasury Felix Nkulukusa said the government is working with the World Bank on the National Energy Advancement and Transformational project (NEAT).
Mr Nkulukusa said the $700 million project will run from 2023 to 2033 and is aimed at making ZESCO sustainable and attract new private sector investment.
“In phase one , we did have an allocation of $100 million and a disbursement of $25 million was done last week,” he added.
The Secretary to the Treasury, said the Cat DDO will greatly help Zambia to respond to the energy crisis
And World Bank delegation leader Ms Kwakwa disclosed that the World Bank is bringing a new instrument to Zambia called the Cat DDO and the project will be tabled by the World Bank board before the end of the year.
She explained that the Cat DDO is a form of contingent financing offered to help countries take a proactive stand towards reducing exposure to catastrophic risk and access to funds immediately after a natural disaster.
Ms Kwakwae stressed that the drought reinforces the importance of continuing to build resilience in energy, water resources management including irrigation and adapting more climate smart agriculture.
She noted that there is a need to diversify the energy sector and sources through regional trade.
Ms Kwakwa also said the World Bank will work with Zambia to remove major hindrances to private investment and growth.
“We will continue to work with you to push this agenda and also put in place things that will stimulate growth in a way that you are able to achieve your objectives of reducing poverty and uplifting all Zambians,” said Ms Kwakwa.
The World Bank regional chief said that her organization will work more closely with Zambia on mechanisms that will allow the country to manage the revenues that come out of investments, particularly revenues from the mining sector.
Like seriously…this is so embarrassing….when we talk about preserving our natural resources and stop wasting our natural resources….. HH in opposition was such an articulate person and now all of a sudden he sounds like he doesn’t know what he is doing….. I thought he made progress with the Chinese…..remember when i said the Chinese trip was just his annual pilgrimage
It is too dark in Lusaka, shut the thing down please.
I have been calling on shutting damn country since April. Shut the country down, not just Kariba.
And World Bank should stop listening to these corrupt African leaders who end up stealing our resources….HH assembled a bunch of Bandits in his cabinet and he is aware that his Ministers are corrupt…..and why do we have Ministry of Education and Ministry of Science and Technology……Why do we have Ministry of Justice and Ministry of Home Affairs and internal security….the list goes on and on and on….aren’t we just wasting tax payers money with having 3 to 4 Ministries doing the same work…..
And a Democracy cant have a Ministry in charge of freedom of speech. What is the ministry of information/Media for? To reward party cadres with unneccessary portfolios? Just like the Civil Service is beingused to employ the unemployable cadres? This while the rest of the country begs for help from World Bank?
Oh I forget To control DeadNBC.
Zambia needs the Ministry of Silly Walks (a Monty Python bit) lol
WORLD BANK SHOULD STOP SPOONFEEDING AND DEALING WITH CORRUPT AFRICAN LEADERS…..THE SUPREME LEADER AYATOLLAH HAKAINDE HICHILEMA IS ONE OF THE CORRUPT AFRICAN LEADER…MUNANGANGWA….TSITSEKEDI etc….ALL AFRICAN LEADERS
In Zambia why do you call.every politician “Honorable”….what honor do they bring to the country apart from Misery
When our professionals see that they start demanding they should be called Accountant Phiri Economist Hamutete Engineer Mwiinga
African leaders just fresh from signing nonsensical agreements in China and today they’re beginning the World Bank….the Billions used for the Chinese trip would have been used to pump in our economy
How much did it cost us to hire that Emirates Plane????
This is a very problematic and embarrassing situation for Zambia. Where is the economic competency we elected UPND into government to execute? It’s as if we saw and voted for a mirage, and I confess to feeling hoodwinked by Mr Hichelma. If the World Bank and IMF know what’s right, they must cease and desist from throwing lifelines to incompetence.
What has gone wrong?
From champions league to Economic shutdown? Increased CDF,Free education
Reduce these figures back as we are on a
Downfall slide.
I told you, upnd is a failed project. Where are praise sings at? World Bank & IMF ate demonic entities created to keep poor nations more poorer & your president is courting them.
Like it or not, to become president of a country one must be a leader at ward level, district or parliament. That way they will understand how government operates. Government doesn’t operate on theories that one learns at school.
Cry my betrayed nation, which nation has developed after courting the World bank & IMF? These upnd failed projects must step down asap
There is no such thing as country shutdown; There is only government shutdown meaning allowing agencies to reveal their spending due to overspending. A country exists whether their is government or not and economic activities will continue but at a high cost. Equally there is no economic shutdown. Whether you notice or not economic activities will always be there because these activities are NOT brought by Governments, but by people as they live. The job of Government is to monitor economic activities and avoid extremes. This is why censes is important to any nation; to plane in accordance with population and the economic activities in the nation.
PF & their cadres used to steal & build infrastructure such as modern homes, hospitals, lodges, shopping centres etc. in the country while these clever blacks steal & invest outside Zambia.. question is who is the the better thugs between PF & the cult UPND? TSEK man!!!!
This is very embarrassing. Is this what we have been reduced to as a country. Begging. He has not admitted his failures to Zambians but he his on his knees with the world bank after selling the maize and giving away minerals for free with the saw called tax holiday.
The World Bank team is visiting Zambia to witness the extreme hardships its citizens have been subjected to, while the politicians, especially senior ministers of the inner cabinet, are enriching themselves rapidly. Every day, we hear of a new scandal of looting the treasury. How can citizens benefit if their leaders are in a race to set records of embezzling national wealth?
The World Bank must conduct a spot audit of the allegations and possibly consider deputing their representative to disburse the needed funds to legitimate people to keep the corrupt individuals at bay and ensure the rule of law in Zambia.
How can you be lead by a leader that is saying the country will “shutdown”? This fellow should just go and let competent Zambians rule! Can you imagine the father of the house saying there will be no food tomorrow? I understand why this man was called “Under Five” by the late Sata (MHSRIP). Now the youth of Zambia know who they voted for!!
Just allow Zesco to increase power tariffs like yesterday, so that we can import from SA and Mozambique. Better to have expensive power than no power at all.
I think we have reached that stage. Chibe chibe
Just last they were taking high resolution pictures …..dancing and proclaiming the China Pilgrim trip a success and today they’re on their begging for handouts from the World Bank…..20 Private jets with massive entourages from Africa landed in China last week…how much money is that
And we have people like Wynter Kabimba as Politicians and we expect Zambia to develop…the guy has no Spine no wonder Michael Sata got rid of him quickly…Wynter Kabimba like all other Politicians is a disgrace…what hunger can do….today they’re insulting the President and calling him incompetent and the next day they’re on their knees begging for a job just like Frank Bwalya…Politics of the belly….and soon Wynter Kabimba will be on Government payroll driving a massive SUV with security
This guy HH does not listen to advice. He is now taking Zambia into the stone age with his World Bank. This path he has led Zambia to had been tried in the past by UNIP govt. How can a country endowed with minerals and water bodies, be on the street with a begging bowl? Our East African neighbors (Rwanda, Uganda, kenya, Tanzania, Uganda) do not have mineral wealth and yet they are performing better than us! Under Five indeed!
I have always said that HH if he was a sincere and one willing to learn, should have let the experts at Zesco and ZRA explain to him why there was loadshedding. That way they were going to work out an alternative. But instead he ordered them to switch on all the turbines without realising the implications. And the Zesco chaps went along as if they’re not trained.
@Justice
Its mind-boggling isn’t it….in abundance of water a fool is thirsty….thats our African leaders….2024 and we still want to depend on the west to spoon feed us….Scandinavian countries have zero natural resources and very bad weather but look at their economy….have you ever heard and any Scandinavian countries asking for handouts from the World Bank or IMF
Even Robinwood was a thief. So there is no good thief and bad thief. They are all thieves- kawalala
It is neither the fought of IMF nor the World bank. Kaunda was given ten years to privatize the mines and each year, he was to receive 1.9B Dollars as balance of payment. at times our problem is chizungu. Kuzivelachabe, nichoipa.
And Chiluba was given only one year to privatize the Mines. Whose problem was it?
Lets debt this issue so that we are ready to rule ourselves.
In the USA the Supreme leader Ayatollah Hakainde Hichilema will be called a ” make believe” person….what he does or says is just illusion
Which Zambian regime decided that Zambia should be a member of IMF and World bank?? Those who are against Zambia obtaining support from the World Bank and IMF should lobby their MPs to table a motion in Parliament for Zambia not to continue its membership of IMF and World bank. Even China is a member of these same institutions dunderheads are criticising on this forum. Foolish pride will get these people nowhere!!
The UPND and HH regime found Zambia as a member of the IMF and the World bank. So these negative sentiments about IMF and World bank come from people with foolish pride. Even China is a member of these institutions. It is a waste of time blame HH for seeking support from IMF and World bank when Zambia has been a member of IMF and World bank before HH became a president. Those who dont want Zambia to be member of the IMF and World bank should lobby their Mps to table a motion in Parliament to remove Zambia from getting support from IMF and World bank!!
Why is LT not posting my comments. I repeat Zambia has been a member of IMF and World bank before HH became president. Even China is a member of these institutions. Those who just criticise HH for seeking support from the IMF and World bank suffer from what people call foolish pride!!
World Bank please say no deal
This mess has been caused by this GRZ and they must rectify it instead of accumulating more
I don’t see honourable Musokotwane in the news of late
Musokotwane has chickened out!
Soon after winning election the Upnd sent some people to the Mid East to negotiate the purchase and delivery of fuel. The Arabs told them point blank that they have a system in place which cannot be tampered with. It’s not a simple game.
What’s in it for the mighty world bank