DISCLAIMER: The views and opinions expressed in the following article are those of the author’s and do not necessarily reflect the views of Daily Revelation
Increasing debt crisis in African countries turned most of them to International Monetary Fund fondly referred to as IMF and its Brentwood partner institute World Bank.
Zambia’s debt challenges dates to the mid-seventies when the World experienced economic meltdown and Zambia performed poorly economically in the succeeding years.
On record Zambia’s debt crisis is both self-inflicted due to poor home-grown policies on one hand and challenges in the economic world order.
Perhaps of importance is that the economic debt distress the country is experiencing was laundered by both the world economic challenges and unsustainable home-grown policies by the previous regimes, and therefore International Monetary Fund backed solutions becomes inevitable to any government.
It is interesting, however, that the less informed and populist politicians have deliberately gone out gun blazing at President Hakainde Hichilema and his United Party for National Development Party (UPND) for securing the debt economic plan, how ironic.
As a people it is important to look at how as a country, we found ourselves in this debt crisis trap. The Huge debt crisis which Zambia finds itself in is self-inflicted by a few selfish politicians.
Despite that in 2000, Zambia was relieved of US$224 Million by the African Development Bank after government implemented several austerity measures on spending during the Mwanawasa reign lessons by those who aspire for office were not learnt.
The Highly Indebted Poor Countries (HIPC) completion point came with advantages such as lowering the kwacha to a dollar unfortunately the advantages could not be sustained.
What is mind boggling is that despite repeated warnings to the PF Edgar Lungu led government, Zambia’s borrowing was relentless even ignoring the fears that Zambia would not meet the repayment conditions when the debt would fall through.
The PF government continued to acquire these debts under the guise to build infrastructure and related development. The country continued to borrow without investing in revenue generating ventures and became increasingly clear that it would not pay back the loans. The government was fully aware that it would not pay back but pass on the debt burden to the future governments.
The debt crisis exerted pressure on the country’s exchange rate which affected the poor through high cost of living such as mealie meal and cooking oil prices fetching more Kwacha to buy.
The country plunged into economic challenges by political decisions of the Lungu government to a greater extent especially after Zambia had a relief following attaining the HIPC completion point.
Zambians must challenge the immediate past leaders because they unreasonably took the country back into the debt crisis because they had an opportunity to make it different.
Historically and regrettably so the IMF recovery programs in Africa have not been well received by many African countries because of their adverse effects to the vulnerable populations.
The austerity measures create untold misery especially among the poor and the middle class in society. Zambia’s record with IMF austerity measures leaves a bad taste in the mouth of most Zambians today.
This often enhance negative arguments at the IMF recovery programs in Africa.
It is this background that raises concern among the people and yet the blame should not be on the IMF but the Zambian leadership with their selfish interests.
You will not be wrong to think that it is political populism for opposition political parties to blame IMF over these recovery plans. Economies are often run down by elected governments on unsustainable home-grown economic policies. Blaming the IMF is as good as blaming a doctor who prescribe medicines for a patient who has been taken to the hospital for a terminal disease.
Similarly, we as a country cannot begin to blame the UPND over the IMF done deal as regards Zambia’s economic recovery plan because the country was in the ’ICU’. The nation should as a matter of honest encourage the UPND government over the debt plan and caution its leadership to learn from history. It is not wrong to borrow however government should be encouraged to prudently use the resource so secured.
Further government should ensure that from President to the least person in the implementing mechanism understands this.
The UPND government’s recovery plan coupled with potential resource use must have won the hearts of IMF. It reflects the high level of confidence of IMF to Zambia under the leadership of Hakainde Hichilema.
The number of votes the UPND got is equally a reflection of the confidence in the leadership of HH and his government but should not be taken for granted.
Allow government to work.
Francisco Mumba
Governance and Peace expert
