Handle adjustment to minimum wages with caution
By Chibamba Kanyama
The directive by President Michael Sata for the Ministry of Labour to adjust the minimum wage will have a significant impact on the standard of living for the majority of Zambian workers. The cost of living in Zambia has, since the last adjustment of the minimum wage, risen by over 200 percent, thereby making it difficult for over 100,000 labourers and casual workers to sustain a decent livelihood.
However, in making this adjustment, the Government will need to carry out wider consultations and research in order to determine a minimum wage that does not negatively shock the country’s economic system. A sudden and unrealistic adjustment in salaries for a large number of people has the potential of increasing inflation. High inflation will be another way of taxing the same people we are offering the relief.
In addition, wages that do not reflect high levels of productivity generally lead to stagnation in corporate growth and investment. In the long run, employers will respond by adjusting head counts which will eventually lead to high levels of unemployment.
It is for this reason consultations on the minimum wage should not be limited to unions, employers and government but should allow monetary authorities to have a big say so that any possible repercussions are fully managed before any such adjustments are made. The best option for now is to get those companies failing to comply with the existing minimum wage to do so. Logically, if they are failing to meet the barest minimum wage, they will have challenges meeting the adjusted one.
Secondly, Zambia can learn from the South African model where the minimum wage adjustment was made over a period of time to allow for proper macro-economic re-alignment with an increase in productivity. In the Zambian situation, it would be advisable to adjust the minimum wage over a three year period.
Its a very simple issue… lets measure the inflation rate in 6 months time and this mister know it all president will understand what the economists are talking about and what the implication has for the nation.
This is is not even university economics its actually high school level understanding of economics but i understand the president never made high school so i can forgive him
I can with pleasure send him a copy of “Wealth of Nations” for is bed time reading
and why wasnt it apparent to these economist before that workers needed a minimum wage? this reactive thinking is what breeds populism in politicians.Â
Your friends should benefit as well. that kind of economics… no wonder MMD lost elections. you had too much degrees aya kukopolola. you do not care about your friends. Your pocket money is more than what you are calling minmum wage. any way you are going to die soon, you are the elite your life expectancy is short. we and our president we expect long life.
i don’t see any problem with what mr. kanyama is saying.
As usual Chibamba picked up a text book did cut and paste and sent it to press. Can Chibamba reconcile how much money RB spent on lexus cars, high taxes on fuel, campaign materials bought with tax payers money? If some of that money was diverted to pay an acceptable minimum wage will his text book theory still hold water? Truth is CK is out of his depth in this as always for he is a journalist wanna be economist….yes he has a BA in mass com and a Masters tainted with economic theory does that make him one? Further do get back into the gym Mr. CK.
MMD is history just like stand for zambia program. Dala why do u act like you dnt live in the diaspora? the issue at hand is this now, move on!!
Your comment is full of jealousy and malice. So what if CK started off as a journalist? Since obtaining his Msc in Development Finance he has held senior positions at ZSIC and SabMiller which qualify him to speak with authority on the econimc implications of the government policy. Stop being a hater!!
Chibamba we dont have any time, if you seem to have time yourself hang on..you are not government why are you belittling yourself to join the bandwagon of William Band and crew.
well, well, I have never really agreed or followed Mr Chibamba , journalist cum economist, reasoning on inflation issues, but as my colleague in #1 put it this is basic economics really and I have to agree with Chibamba Kanyama. He is absolutely right on the money.
The President’s rant on economist was cheap, Kaponya like and kulima Tower Economics. The President need to realise that he is not running a bus station , but a nation.
And I hope he was not directly attacking Mr Kanyama as somebody getting millions. People forget that Mr Kanyama millions can create jobs and opportunities and give millions to kaponyas they will just buy 200 take away food every day and buy cars and not invest in the growth of the economy. TBC
Bakalamba dont think you are educated you do not sound like one… you want your friends to suffer. That arrogance caused MMD to loose elections.
Its strange now you never buy popcorns to watch the drama unfold, what happened? What did your thieving president do..did he think of any basic economics when he went to buy 2 cars? Just accept reality, SATA will go down in the Zambian history books as a good leader…you can keep praising dead Kafupi or Shrek Banda
How much is your salary Mr Kanyama?Â
I understand that increasing the minimum wage could adversely affect the inflation rate, but not increasing the minimum wage to an acceptable level will adversely affect the economy more. Increasing the minimum wage will give people more disposable income to spend which the economy needs for growth.
case in point George W Bush sent out cheques to American household and all that money was just swallowed by energy bills and American is still in trouble today.
The minimum wage issue is a complex one and need to be deeply debated with all stakeholders involved. You can’t just issue a order to enforce it. This is economics-effective & efficient distribution of scarce resources.
There is an underlaying principle of supply and demand and exchange of money for skills take place at what the parties in the equation agree on. For example the supply side of Doctors is constrained and will unlikely meet the current demand for Doctors, because it takes 7 years to produce a Doctor and because of that demand, Doctors have a choice to work where they want at high salary.
Think about this.
CK must be earning more than K 30M per month. This will be equivalent to 30 labourers at K 1M adjusted wage.(currently @ K 460,000). It s unfortunate for CK to mantain the status quo where his monthly salary is equal to 65 minimum wages.
my salarie is 55million kwacha minus allowances……:”>:”>:”>:”>:”>:”>:”>:”>:”>
Well said Mr. kanyama. The situation has to be studied first before making rush decision such as reducing bus fares, fuel prices & increasing the minimum wage.Â
Though I agree with the President Sata that it is not fair that people like yourself get more than you need while others get less than they need.
An implementation of micro-economic reform will be necessary in order to increase productivity so that the increase in minimum wage can be justified.
On the other hand if your skills are in abundant supply , you can’t demand a high salary. It is incumbent upon you as an individual to upgrade your education and skills. And this is where the government should really come in to and help than dab into this nonsense minimum wage rubbish.
Yes Mr Kanyama probably earns millions and he deserves it because he works for it , his a manager because he has skills to do that , he sales books because he is a writer. and those question or asking how much he earns are just being imbecilic. Mr Kanyama put in time and deserves what he got.
Please tell your fellow bus conductors and Kaponyas that if they need a fat salary like the one he get, the path is simple. Go to school and upgrade your skills.
Minimum wage wont save you.
You are the imbecile!
You are sounding frustrated. Whats up? Cool down my man, Sata, a Kaponya as you rightly state is a president of all Zambians
We saw a lot of money exchanging hands during the past few months to the elections but the inflation rate held its position. How do you reconcile that to your theory Mr Kanyama? Chiwamila galu kuluma Mbuzi and not the other way round ka Mr Kanyama?
#3 #5 #8 – Obviously you are not economists. You are stuck in your own pie-in-the-sky childish fantasies of high salaries that do now much productivity. In very simple terms, what Chibamba is saying is that if companies are forced to implement a high minimum wage that does not much their current levels of revenue, they will lay off workers so that they maintain costs of production that they can afford. It is up to the President and the Unions to think more realistically and face the reality of how economics works. Otherwise if they keep the pressure and insist on an unrealistic minimum wage, what we are going to have is more people being laid-off by employers. Now, I don’t know what is better in your brains, whether to have more people in employment or fewer people earning a lot.
Mr Kanyama is copy pasting.
chibamba kanyama,
you are a hypocrite. where were you when your stupid banda increased salaries for constitutional office holders by twofold? you were suppose to shout on top of your voice since we were in the middle of the world economic crunch. but you kept quiet because you benefited one way or another.
now that the president want to help the suffering and down trodden zambian employees by asking employers to do away with these slave wages (250,000.00 p/mth), you come up with your shit theory.
are you saying we should continue suffering like this because of your theory that, according to you, should be adhered to. this is why i say economists and lawyers are irrevant in this country.
have never agreed with him on this issue but i like the part where he says if they cannot manage to comply with the minimum wage at where it is now how are they going to manage at a higher figure? the truth of the matter is most employers make a lot of money but choose to abuse their employees so starting with making sure that everyone complies the current minimum is probably the best way to go otherwise they will not comply as is always the case because no one enforces that law or if they do they have not visited us.
Let us not be smart with inflation and economic jargon. As an example, in Chile an average annual wage for a copper miner is $26,000 while in Zambia it a meagre $4000 and the copper produced is soild at the same market. The cost of energy in Chile is relatively higher than that of Zambia. To me Zambians are being raped. To stimulate local economies masses should be paid well and not only a few. The money lost through corruption is normally spent abroad and this is part of the money that should play a part in addressing the minimum wage too. If Chile has managed higher wages for its citizens with their inflation controlled, Zambia should be able to address the needy without being scare mongered by the so called scolars. Sometimes the writing is on the wall and a text book is not always the
i understand basic economics but i don’t agree with you mr. c.k . No wonder rich people do not have masters degrees because they is too much theory and hypotheiss. to be fair then lets us say your input at work should be equal to your output. input = output, work done= salary given. and then lets us talk about inflations and frustrations.
# 14 Njeje we are not talking about stupidily increasing wages here. In Zambia any one commuting to work, pays for electricity, buys mealie meal cannot survive on K450,000 ($100) a month. It is about addressing a basic needs. Unless otherwise you want everyone to live in little thatched huts
Waiting for MMD to deal with Senior Chieftainess Nkomesha of the Soli people since MMD said (RB & Kachingwe) they would deal with her after elections.
Iwe MMD bootliker Chika.la, don’t deceive masses over things you do not understand. So if all of us Kaponyas as you call us, got masters degrees are you telling me we would all earn K30m? What if it was never possible, for which it is not, for every one of us kaponyas to get masters degree, does it mean we would be relegated to perpetual poverty? Come to Australia and learn for your self that a mere high school graduate is capable of obtaing a house mortgage from a bank, in a type of neighbourhood you will never live. So why do you think this is possible? Its because a high skul graduate here earns a minimum wage of $15.51 per hour or $589.30 per week. Kabepeko abakashi bobe chintu chobe!!
Mr Sata is very good friends with Mr Mugaba a well learned guy who also tried to play with the rules of economics the rest is history…
What Mr president does not realize is that the Zambian economy is heading towards a very serious economic head wind… very soon the tsunami is going to hit the shore with massive implication for the Zambian economy..
Long term copper prices are now pegged at US$5000 with current inventory in LME warehouses at an all time high of 453100 tons.
Instead of wasting his time trying to debate a subject he does not understand he would rather be build protection for whats coming. He his going to knee down the chinese like he did with the bishop when reality sinks in
Chibamba’s arguments on the negative effects of a sudden adjustment in salaries are plausible. I’m glad he has stated some options on how to approach the problem, otherwise I would’nt have taken his caution seriously.
“we need to get those companies failing to comply with the existing minimum wage to do so..” This option seems more viable to me, but it may not be as easy as it sounds.
Clearly, there are no short answers to the problem because the spectrum of issues related to wage increase is wide. The government will only succeed with a substantial contribution by employers and that is why they both need to work hand in hand. The last thing any farmer wants to do is to eat the corn seed that will bring him us a rich harvest tomorrow.
Lets listen to the wise words of this Economist. The problem now is that the President thinks he can run the country single handedly. What sense does it make to increase the minimum wage by, say, 50% and have the cost of living pushed up by 100%? Reminds me of a man that gives his girlfriend K1m and steals the money a monent later through his close friend. Our President is just a good politician-making sweet pronouncents that blindfold illiterates.
For 20 yrs the MMD have been feeding us figures such as GDP, inflation, economic growth, exchange rate etc to an extent that even CK believes so much in these things. What we know is industry in Zambia is dead this is one area the MMD should have addressed to keep those figures they love so much low. Despite boasting about these figures the MMD have managed to fill their bellies full while the majority of Zedians are being exploited by Chinese and the rest of the investers. Local workers put in a lot of hours for nothing and since this has been going own for too long we are more scared of inflation than poverty. A minimum wage of k2m will scare the inflation a bit high but the grz is not ending there. Bootlicker u may not abuse evry supporter of PF as a kaponya. We have a lot of educated..
At comment 11 VigilantCitizen, its macroeconomics and not micro, brother.
Never trust Zambian economists they are useless to say the least. They have never offered a solution to imporve our currency’s value, imagine Malawi kwacha is more valuable than ours. People get paid in hundreds. We are the only country in Southern Africa with a K50,000 note. We have nver heard these so called economists rant about this. Secondly, its unreasonable to debate the minimum wage seeing how much the lowest zambian gets-surely can mr chibamba survive in a 400pin. Thats the money he spends on airtym a day yet he only works on files at SAB. Infact his company is a culprit in casualisation and meagre wages to labourers coupled by tax evasion. This is a well known fact that the South African owned Beer company has been evading tax for many yrs and yet the same economist works there.
cont.. Kaponyas running businesses outside the formal employment u have been blind forded with. The PF is talking agriculture and not what RB boasted about that came about due to favourable rains. PF talked about irrigation. Bootliker there a lot of intelligent Kaponyas far much more than u re. That is why now u re on the wrong side of development. These white pipo have managed to keep us poor while the plunder our resources, they feed a few like chimbamba and u to keep the masses blind. That is why even Mugabe in not entirely wrong
Some economist promised to raise teachers’ salaries to a minimum of Five (5) million and no other econimist condemned that. In short HH said that but how was he going to do it when the pending ibncreaments are maybe close to or less than a Million kwachas.
Lets create a path where every one will be able to pass through & remember not all people are dull bt tht they dont have sponsorship so if u aquired tht higher educacation count yourself luck coz in zambia once u complete your secondary school & u thnk doing a job to raise for twtiary education then u kill & bary urselt coz the minimum wage wll be 400000 how can i upgrade my edcation coz am not am neither a writer nor a singer there are pipo once they finish grade 12 they are already breadwinners in a fsmily of 7 now how can they survive with that pressure mounted on thm & tht wage of 400000 kwacha lets be realistic why did we not experience the same during rupiahs era of 3years plundering pliz let everyone enjoy this is a country for every zambian.
Become an employer yourself and not die a worker. As long as you remain a worker you will always complaining and waiting for a magical polititian to rescure you. BE AN EMPLOYER
Okay three years is a little too much, BUT I must agree that some kind of systematic approach much be employed.  All this cannot be done in haste.  Inflation or not, we cannot deny every hardworking citizen the right to an honest living just because economists say doing so would have implications on inflation…that in my just opinion, is inhumane.  And it is such thinking that has put the world in the mess it currently is in.  Zambia has over the last few years spent substantial amounts of money (Both government and the private sector) to finance corrupt activities (the whole nichekeleko fracas) or let alone unnecessary expenditures (3.6 Billion on Rides, and much more for Mobile Hospitals), people, I need not explain more…
the man has began an very ambitious campaign to put the house in order, reduce miniterial expenditure and what not. Â Just last week, the Minister of Local government banned workshops at the local government level…Any grade 9 would understand how much money we are saving there. Â Reducing the number of ministries again…any grade 9 would know how much we are saving. Â I The man has been in office less than a month and he has achieved and put in place mechanisms that his former compatriot failed to do in 3 years…Time bomb or not, he is doing a mighty great job for a first timer…
No one denies the fact that basic salaries have to be at a level to afford basic means and also have to be pegged at a level which can be sustained by the revenue generated by companies. I proper study has to be done like Chibamba is saying
Just like one can not just work up and say the retirement age is now 65 instead of 55. The process to determine retirement age involves a very complex actuarial science calculation involving a lot of parameters which has an implication on medical, insurance etc
I must disagree with you on the minimum age…Any one that has a good understanding of population studies will agree on a number of issues:
1. Contracting retirees is more costly for the economy
2. The more the retired people, the greater the strain on public resources
So whether an actuarial science or not, better keep them all on board and get them to pay taxes rather than put the strain on some of us…
You must understand that for Mr. Sata’s concept of lower taxes to work, he needs to make sure that there are more people in employment…and one way of achieving that is getting most of these retirees (most of whom are having a hard time making it anyway) back in employment)…
I am VERY SURE, 100% SURE, WITHOUT A SPECK OF DOUBT in my mind that you DO NOT KNOW that there is what is now called ‘NO DISCRIMINATION AGAINST AGE’
I don’t blame you because it is typical for Zambians to be behind of issues; which makes you one of them.
ATlaest we should have am1nimium wage which can enable some not to live in poverty .some company they can manage a minimium wage of 1.5million kwacha but they paying workers 350000 it is not fair.
Chibamba is absolutely right. you fellas who dont seem to understand even the very basics of arithmetic and economics be on the watch out.its not always wise to display this kind of dullness even on straight forward issues.
I just wish you could get a K450,000 as your salary and feel how it is like to pay rent, buy food for family and send your kids to school from that.!!!!!!
We are all Zambians at least we who are better off can feel for them as well. We are busy raising funds for Street Kids, HIV, and all other stuff. If the average Zambian had a decent wage, we wouldn’t have had the current levels of street kids and HIV. Lets use that money we are busy raising as their salaries.
THE PROBLEM WITH CHIBAMBA KANYAMA IS THAT HE SPEAK STRAIGHT FROM THE BOOK. A GOOD ECONOMIST WILL TELL US THE CURRENT MINIMUM WAGE, WHEN THAT WAS INCREASED, WHAT HAS CHANGED IN THE PROCESS, HOW OUR MAJOR ECONOMIC DRIVER(COOPER) IS DOING, GIVE PROJECTIONS FOR THE FUTURE, WHO HAS SO FAR BENEFITED… THE GUY JUST COPIED AND PASTED FROM A TEXT BOOK….
THEN MMD Chief Bootlicker, The Engineer and others COME HERE WITHOUT SHAME TO PRAISE A FAKE ECONOMIST… I WONDER IF ANYONE OF YOU EVEN KNOW THE CURRENT MINIMUM WAGE… CONTINUE SHOWING US YOUR STUPIDITY.
There is no such a thing as minimum wage world over. Let companies pay what they can afford to willing people. Also this government should discourage people from getting employed to companies that can only afford peanuts. Otherwise we are just waffling here and nothing is tangible enough to talk about. Regards. I end here!
Please may any informed blogger clarify for me what economic implication there is when economists tell me that the GDP of Zambia has been growing at an average of 6.3% for the past 7 years such that Zambia is now classified as low Middle Income Country (one of a handful of nations on the African continent). Does that mean on average the value of goods & services produced in Zambia in total when divided by the population of our country has gone up? And if so is not logical that then I should observe an increment in the take home pay for the average worker? Or am I being too simplistic please clarify for.
Mr kanyama,we are not ready to listen to our fellow employee not untill u form your own firm. cos ua also figthing for a salary increase,teti utubepe.
Chibamba Kanyama is being selfish, he wants others to be getting k450,000.00 when himself spends that amount on drinks in less than a day. He is able to build those houses coz of the high salary he gets. Why jumping from one company to the other? Is it not the high salary that he followed? Come on Chibamba, how can iflation come in if u pay someone ka reasonable salary to allow someone to rent ka 2 rooms kama light?
LT FAKE, I POST A GOOD COMMENT YOU BLOCK IT. SAVE YOUR CHIBAMBA KANYAMA WITH HIS COPY AND PASTE TYPE OF ANALYSIS.
It’s amazing to see how economics can blurr the minds of people. Consider how much wastage of money there’s been in Zambia over the last twenty years. Just the wastage alone…fuel purchases based on prices with huge commisions factored in, government travel, the most expensive vehicles on earth, per diems, foreign travel – business class; meetings with sitting allowance is paid (people have built houses from sitting allowance – the case of ZNBC?); fuel allowances, fraudulent tenders, dipping into donor funds (the Kapoko saga – he’s not the only one!! there are thousands of Kapoko’s!); Commissions from sale of industries (remember the wealth of bena HH et al); Before you even arrive at basic economics how about shutting the ‘leaking taps’? Sata is just shutting taps so far
Chibamba was just instructed by his emplyers in SA to discourage the gvt from increasing minimum wage becoz their company will be required to up salaries. Zambian Breweries make alot of money and can manage to pay a minimum wage of 2million ZMK.Â
I worked for this company for 5 yrs but left bcoz poor salaries. casualization is also rampant. Directors such as Chibamba get in excess of 35 million. I was a degree order but getting 3.5 million only in 2009. They also evade tax a lot Please Sata visit them.
@40 above, I meant holder
Ati site moderator?
I recently sat on a panel where a proposal was made that the lowest paid in the organisation was to get abt $100 (without any other allowances)while the highest paid was to get $10,000 + housing and allowances. As a principal player, I disagreed that this was “immoral” as one could not be expected to live on $100 in a month. It is not about productivity or degrees its about “the food basket” needs. The min. Wage must be aligned at worst, to the food basket. We blame domestic workers for being thieves but look at the “change” we pay them? I shudder to think of any employer in the mines, beer, bank, telecomm etc paying a worker K450,000 when they make so much net profits.
The ruling class will always scare you with words like, investors will leave the country, Inflation and so forth. We are talking of raising a minimum wage for people who are producing, this is real production.
I have personally doubted chibamba as an economist,any way i can forgive him since he did mass communication.Mr Kanyama,i refer you tothe Ricardian Equivalence Hypothesis toavert your fears.The truth of the matter is that you are tryingto speak for your company,SAMILLER which is already a culprit of casualised labor.Sata is coming for you.What caution are you talking about.Your party the MMD which suppresed us is now in the archives.
We need SATA to set up a pricing commission that will set prices for ALL goods and services in Zambia so that we don’t have economic saboteurs wreck his program into redeeming this country. If wages are adjusted upwards, we don’t need business institutions to up prices so as to make profits and again make people go one step behind. No No No.
This is a simple and straight forward solution.
With due respect to our head of state, what really unsettled him about the statement? The PF government, which I currently support, will need to replace a new cloth by first of all understanding the broader context of previous policies, why they worked and did not work, implications and wayforward.
The only people who will benefit from the minimum wage are those who are working ie 30% of the total Zambian workforce. If you dont work (hence part of the 70% unemployed) then you will not benefit. Wrong priorities. Your president should have created jobs rather than the minimum wage. Chibamba kanyama’s(BA Mass Comm., Msc Development Finance) is okay with his analysis although he is not an economist. Sata will ruin this country if he does heed such advice.
90 days is fast receeding and government under pressure to deliver on the promise. Unfortunately, there are no quick wins without repurcassions. The President should, therefore, be open to critical minds. Any sustanable success of any country depends largely on open debate and President Sata should embrace such thinking.
The current minimum wage in Zambia is about $65 per month. Now debate!!!
lets look at the profits made by the mining companies, lets look at the inflated salaries for expatriates and the numbers in Zambia. it’s our money and it can only come to the masses by forcing companies reduce their profits and increase the welfare of Zambians. how do you let somebody make a budget with ZMK 300,000? This is why crime and petty theft is not coming down…
Chibamba Kanyama is being selfish its simple. He earns that kind of money because SAB makes billions on beers sales. He feels agrieved to let other zambians earn what they should. If a company makes billions of profit, why stick to minimum wage, people should be at libert to bargain for higher pecks. CK your theories are far from reality no wonder some one said you did mass communication and one year masters in economics and you think you know it all? I admire scholars like Dr Dambisa Moyo, I would respect their predictions not yours CK. SATA is right to say you scare others where as in your case you get over K30M . that is nosense
Lets get the basics very clear.
Chikala Bamba is not an economist. He is a loud mouthed ignoramus who did a bit of Mass Communication. He is not an authority in the subject of economic so listening to him is like taking marriage councelling from a divorced serial adulter.
Secondly, Chikala Bamba had 20 years with the MMD to prove his theories and fake advise.
We are simply tired of allegedly knowlegeable people with a poor track record, suspect qualifications and undeclared interests in a subject. The article therefore belongs to the dust bin.
If anyone of you has read Chibamba’s first book (yet to access recently launched), you will have a lot of respect for the gentleman. Anyone with insight can know this is the guy to watch. His Teen Vision programme reflects his passion for the country, away from Kaponya economics. We value you CK…by the way, ask any former AIBT MBA student where Chibamba’s lectured International Business and Corporate Finance. He has great academic credentials and excellent lecturer.
Ba Kabamba Kanyama, your theories and assertions are those found in the standard western textbook economics. Stop and think for yourself. Think outside the western economic box. Ask yourself the question, what causes inflation in Zambia? Not England or any other western country, for conditions differ in each country. when you answer this question, then come back and let us debate this subject thoroughly. Your current fear and conclusion are somewhat simplistic.
I watched the world debt organised by IMF. Economist can be funny sometimes. They were fighting each other on theories. Thank u CK. at present we ve deflation. People have no money to buy and prices are stable because there is no one to buy. This inflation can just be short term if production and services are boosted. Even in Namibia were am working, woekers are paid the same as foregners. Artisans are paid N$60=K37,800 per hour at N$1=ZMK630. Look at the population involved and workers. Sometimes swipping statements are not good. Foremen can get even as high as N$100 per hour. Though we may not go as high as that but increase of salaries is long over due.
@28 kelma, icacine? mayo twafwa!! he works there? i said it. these guys are mere conmen.
how can we develop as a country if your own economist is abetting crimes. just know that economists and lawyers are not a factor to our economy. ignore them.
There is an imposter claiming to be Chibamba Kanyama among the bloggers, stating he earns K55m. That does not seem true. As we discuss such issues fellow bloggers, let’s try as much as possible to be objective.
mr chibamba rite nw we need action nt the usless theory which has brought out country’s economy to this state it’s bcoz of pipo lik u wu get huge salaries on the benefit of the had weking zambians,u jst sit in yo livingroom lazing around with yo books,get in th factory as a man to show us tht u can wek.
i believe we have a number of well educated economist in the world at large. Y did they allow the global crunch to occur? and occur more than once actually, with the later being unexpected. Did they not calculate correctly? Until the average person’s concerns are addressed, pipo r not willing to listen to theories which can only be proved when a situation arises.
Under what circumstances should one be regarded as an economist? Looking at his cv, chibamba did as many courses in Economics as Mass Com and his MSc in UK carries finance and economic components. Besides, he is one economist whose views are well respected even by international media where he is usually quoted. If I were the President, Chibamba’s views should not be taken as a threat to the system. President Sata can consult him actually.
Yaba, nalya again.
#50 Economists are scaremongers. They dont know how to predict economic events like the crash. You will never find them agreeing on anything but they specialise in springing up after the event to explain what went wrong.
The future is always uncertain. Economists can only make assumptions based on several factors such as trends. What becomes difficult to predict is human behavior; i.e would the lowering of the price of handkerchiefs lead to high demand or perhaps make people feel there is something wrong about the product? This does not mean economists should not advise based on available facts, trends and theory; this is exactly what Chibamba is advising. Ignore it at own peril!
It shoud be noted that a worker is a slave(otherwise called servant like civil servants and all other titles) of his employer/master.It is the employer/master who is to determine how much the slave should be paid.If the minimum wage is beyond the employer/master’s offer to the slave he has no choice but to get rid of the slave.Thats how life is.
Mr CK,
I don’t see a problem in trying to make the average Zambian be able to manage from one monthend to another and be able to pay for a decent accommodation and school fees for their children. You are the same person going round holding seminars about wealth. You are getting a good salary and sending your kids to better schools. Maybe you want the many Zambians to be wallowing in poverty so they continue calling you BOSS and beg from you??????? Think brother, the BIBLE says ‘pay the labourers what is right and due to the, for remember you also have a master in heaven’
So called economists have never been champions of the suffering masses. If anything they believe in thriving on poverty and supporting systems that keep the poor poor. They do not believe in win-win situations, but dog eat dog scenarios.
And this is where the challenge lies. Chibamba has thrived in the MMD era where he was the darling of politicians who were incapable of thinking for themselves. Sata represents a threat to Chikala Bamba’s bread and butter because Sata is talking about empowering the poor and thinks against the natural grain or the opposite of conventional thinking.
We have tried conventional thinking for 20 years and it has glorified thieves, impoverished Zambians, favoured foreigners who have killed, shot and exploited us. Enough is enough. Kiss my arse, Sata rocks.
The Minimum wage cannot improve the standards of the poor. The only people who will benefit from the increase in minimum wage are the employed. In Zambia 30% of the total workforce are in employment, the remaining 70% do not have jobs. Any right thinking president would first sort out the issue of unemployment before the minimum wage. Chibamba Kanyama(BA Mass Comm., Msc Development Finance) is right in his analysis. Only an embecile would not understand his line of thought.
Bloggers should not be f.o.o.l.e.d into thinking the President has taken a swipe on Chibamba Kanyama. For over 20 years, the two have had a Tom and Jerry relationship; always quarelling and yet always together. In latters years, this difference has been reduced to opinions on policy with Chibamba arguing the PF governmnent is too pro-poor without being elaborate on the other side of the economic equation. I have chibamba’s articles he wrote in 2006! I think we expect an interesting showdown in coming five years!!! Nkhani yalula
Meant ‘PF policies too pro-spending’ (not pro-poor)….
Get rid of the zeros in the kwacha they do not make any sense on the world economy. We could either adopt the US$ like the Kwacha to the dollar and scrap the zeros. Holding on to our own currencies doesn’t make us potent on the world market. We could also consider using the Shilling, or the Rand as we trade with the neighbours. Minimum wage will mean nothing if the Kwacha is as crazy as it sounds. Bank of Zambia governor wake up and sort out the mess
Mr Kanyama, more money good living. The west ,they don’t call it inflation but “high standard of living”and they argue ,coz their economies are strong enough to sustain such high wages,yet they agriculture less,3/4 is imported.why can’t Zambia increase wages,and caution inflation by LOWER TAXES,high production and other variables in all sectors like SATA has demonstrated? The aim of western models is to continue perpetuating backwardness and slavery (wages) among our people and countries in order to advance”their agenda”IT MUST STOP!..Doesn’t it bother you,a lawyer schooled in English law on British syllabus with strict compliance to SOPs from a Zambian university is received with mixed feelings and subjected to further exams in the west for the very materials&methodology
I can’t remember the last time an economy thread generated so many comments on LT. This shows that more people are getting concerned about the welfare of our economy and that is a good thing. It is only through debate and input that we can broaden our understanding of the economic issues affecting our country.
The truth of the matter is that Zambian workers including retirees are exploited by those in positions who misdirect the funds to personal gains. They is an insurance company in Zambia called African Life Insurance whose workers salaries are determined in South Africa but when the Zambian bosses are preparing the wages they reduce them to steal for their pockets. Even in Mines it is the same how can an expatriate get 40m and a Zambian only gets 2m. Shame on you who take milk from the cow but you donot remember the cow. This is what MMD and Nyama Soya did to us because he was accepting bribes from the so called investors, me I call them “thieves in broad day light” with Nyama Soya.
I think most people have for gotten that in Chiluba’s time, we had a wage freeze for 10 years, where was CK? How do you have a wage freeze in a free market economy? No wonder the salaries don’t reflect the current economic gains, while the companies are enjoying super profits.
The MMD had a tendency of increasing salaries and allowances for MP’s almost every year and these increases run into billions, where was these so called economists to advise them? K200 pin is nothing, people need decent wages.
Those of us who dont understand economics are blaming CK, but the man is right to say what is correct.
chibamba kanyama his arguments here lacks SUBSTANTIAL amount of evidence to prove what he is suggesting. what he is trying to tell us is that he has some knowledge on economical issues that unfortunately do not prove his arguments but seeking media attention.There is nothing to trigger inflation because of raising minimum wage, let the companies comply to the laws of the land, this failed pro UPND cadre CK is trying to say the poor should remain poor and rich remains richer. what a fake economist.
Ba LT, Where are u getting tu ma flag? I am in ZED but you show i am in south africa why? can anybody help me understand this? By the way the lesson is simple, just reduce the likes of CK’s salaries and hook to ours the victims within the 460 Pin RANGE. I think this can help.
PF has been in opposition for 10 years, they have had enough time to do there homework. We must all agree that they are merely implementing issues they must have already looked at. why do most people say the President is rushing. I think he is merely ticking his to-do list (im sure PF prepared a to-do list in case they win), which may have been prepared way before the elections.
Labour laws must b followed.
Minimum wage is for those working from house maid,the are far too many not working who will find it even hard when minimum wage go up followed by of course cost of good.
Maybe we start with creating jobs.Â
Chibamba Kanyama is looking for job.Why was he fired from ZNBC.He is too fast FOR HIM SELF.News papers will soon finish him for talking wrong things.What Zambian need is jobs,land,housing,no to ma loan with low intrest.Ask Chabamba Kanyama what he has done for his village,nothing.Some education it like ubuchu shi in the head.
Okey it is simply schoolars let Chibamba reduce his salaries and allowances he gets from ZNTB and consulatancy as he is getting too much that can be shared with these poor ZAMBIANS who are spleeping on 415,000 kwachas.Can he propose a better wage twachula with chibamba short handed people like you let the President share wealth among Zambians.
Is Chibamba scared to pay his garden boy and maid a 1,000,000 kaso ba learned do not mislead us you are not the only economist in Zambia.
let us be patriotic sometimes and take country interest first. formal sector is about 500,000 people, almost 300,000 is GRZ. the rest is dominated by mines- which are making not less than USD100m in net profits! all this is going to foreign shareholders. Surely they can afford it. Economics tells me that we need to create domestic demand via higher disposable which will in turn attract investment and therefore more GDP, employment and lower inflation in the long run as the economy balances out.
Chibamba also need to know what defines inflation in our context rather than just M2, there is a larger import cost push from our weak currency – because all copper export earning are kept in London, the currency will forever be weak. SA does not condon this nonesense and guess what, FDI flows stil
“continued “- SA does not condon this nonesense and guess what, they continue to attract bigger and quality FDI – Walmart has since bought into GAME and the $$ keeps coming. Let us for once e patriotic and put country first. increase the min wage and the economy will not stagnate – it will grow! we have a larger informal sector that is not taxed and nobody knows who they are – focus on them rather. And please read economics and do not plagiaise!
1+1=11. That is real and simpleeconomics to understand.
this sounds good you know thattt
hhhh funny indeed
I think in all fairness, the government is currently engaging stakeholders to discuss this. Comrades read the news! Over and above that, the same companies that are failing to pay minimum wage have droves of so called expatriates who they spend 60 per cent of their wages on and the remaining on the Zambian workforce. I have seen it in practice, I have access to management accounts for certain companies! And these are not even in specialise areas. My thoughts are, replace your experts with competent locals and you will be able to easily afford any revised minimum wage! Companies are spending in excess of US12,000 per month meeting expatriate conditions for campanies like SAB Miller. Get real Kanyama
Enough Chibamba and his rubbish. For he is just a wanna be economist getting millions. My suggestion – he should cut on his pay, surely its unacceptable to live on K460,000.
#14 I dont have to be an economist to knowand understand when a theory is being applied with out all relevant data so if you want to engage in meaningful debate do some homework, Chibamba’s analysis is flawed and he knows it being a mutola nkhani.
This man does not know what he is talking abt. Can he make a budget from 415,000 kwachas for him and his family?
we know you Tongas, u aint happy that you are also in da BOAT,& we know that u are UPND or UNDP whichever & u r triny to frustrate Ubwato,boyi patali
Chibamba..i agree with you..its just true..things happen like that..there should be a systematic way!watch the space..the cost of living will even go up!!
MR KANYAMA please resign from Zambian breweries, become a professional economics consultant, your ideals are of great valve to this nation but you are not standing on that platform that will maker most of us appreciate such comments, when at the end of the month you are asking for a salary, to day in zed education is for the privileged there is a high cost attached ,and pipo need that money so to improve their education
Let us also look at the maximum wage.
Zambian economists are fun, for 20 years they have ignored what effects UNEMPLOYMENT has on the economy of the country and the cost of maintaining the unemployed. A country of 13 million and less than a million employed, you should be offering the government advice on tackling unemployment in the long run not some basic monetarist theories. Since 2008, the world economy had entered unknown territory, there are no experts, everyone is the dark. Look at Europe and America, they have Nobel winning economists but they can’t fix the problem, they have no solution.
Kaponyas in Zambia should know that raising the minimum wage will not serve them. They should instead follow the example of CK & invest thier time in upgrading their knowledge & skills. It is that simple. When salaries for all are increased prices will be increased to try & meet the new wage demands & the net effect will be more poverty. Just think closely & don’t let a President miss lead you. Plse tell him to listen to professionals.
Unfortunately Chibamba Kanyama is right, for those seeking an example on how that could fail look no further than the US economy that has continued to shrink or at most stagnated despite huge stimukus packages, mortgadge debt pay offs and and sigificant tax rebates to individuals. For those eager for huge salaries the focus must be on re-indistrulising zamba and increasing production, reducing cost of doing business which is largely driven by high energy prices and leveraging our base operating cost as a country so that we can produce good quality produvts that can compete facvourably on the internationa market. I do get it but no am no economist so spare you insults on economists and direct them at Engineers that have consistelnty failed to advise, sadly am one though i the diaspora
Whether Kabamab cut and paste his submission is not the issue. He has come up with some valid points. If you have any better ideas you have read elsewhere just go ahead cut and paste them here for us to read or give us the link so we read on our own. Dont be petty.
A aspiration of buying some of roscoe Loubouti