By Agness Changala
Former commerce minister Bob Sichinga says President Hakainde Hichilema’s national plan was anchored solely on the IMF programme and nothing else
And Sichinga is wondering what has happened to President Hakainde Hichilema’s pronouncement that the kwacha will strengthen at 14: 00 hours after being sworn in at 10:00 hours.
Speaking with Daily Revelation, Sichinga said if the International Monetary Fund (IMF) solution is what works for the UPND, he was wondering why the same has not seen an improvement in the foreign exchange market.
Sichinga said he is shocked that the kwacha has continued to weaken despite the UPND complying with the IMF policies.
“What has become of the 10 hours we take over the government, 14 hours the exchange rate will improve? What has happened to it?” Sichinga asked.
He said there was no plan by the UPND other than the IMF solution.
“Why hasn’t the exchange rate come down? They have followed the latter. They have complied with what the IMF wants. Why haven’t they solved the problem? How come they haven’t solved the problem? The IMF is not here to aid developing countries. They are not. If the IMF solution is what works, why hasn’t it worked? Why haven’t we seen a reduction in foreign exchange rate? Why haven’t we done that,” Sichinga asked. “They have agreed with everything that the IMF wants, correct? So why haven’t we seen the reduction in the exchange rate?”
Sichinga said these are misguided economic policies from the IMF which should not be entertained.
“But they need the IMF to endorse them and here at home there is no production and value added. There is none. What are we adding value to? It means right now the exchange rate is going up against the kwacha because you do not have sufficient forex to meet what you require. The demand for the dollar,” he said.
Sichinga said if they want independence as a Central Bank, they should show him and the Zambians that the exchange rate has improved because they have complied with the IMF policies.
“Can somebody show me? None. So the solution does not lie with the IMF, you are looking for $1.3 billion. Surely you can make that money in a different way far much better from other sources, in particular don’t sell the mines, and don’t give away the mines. Control that. Let it be your possession because then you can control the economy,” he said.
Meanwhile, Sichinga observes that there is too much expenditure on the fiscal side because President Hichilema wants to make sure that he wins a second term,
“So it has to be pronounced all the time he is running around. It costs money. He is marketing Zambia. Let me tell you I was a minister and was doing exactly that. It takes more than three years when you make a visit for that particular investment to materialize,” said Sichinga.
