By Merlyn Mwanza
Kantanshi member of parliament (PF) Anthony Mumba has questioned Finance minister Dr Situmbeko Musokotwane why the UPND administration is failing to mobilise the abundant resources in the country such as gold and sugilite to turn around the battered economy.
But Dr Musokotwane said the UPND is working to correct the errors done by the PF by trying to revive mining activities which they crippled and contributing to the lack of exchange rate in the country.
During Oral and Answer session in parliament, Mumba said it was very clear that the economy is going through difficult times, saying there were many issues contributing to the upward movement in interest rates.
He said Dr Musokotwane alluded to the non-conclusion of the bailout package, but the Bank of Zambia in their statement indicated that one of the reasons was that the Kwacha had become weak against other major convertible currencies as a result of the mining companies not performing well.
He said it was clear that KCM and Mopani were not performing well, but wondered why other important resources like gold and sugilite were not being mobilised sufficiently to try to re-energise the mines given that the country has abundant natural resources.
He said the rise in interest rates was a rise in the cost of living for ordinary Zambians as manufactures will also pass on the cost to the consumers.
Responding, Dr Musokotwane agreed that indeed the country had a lot of resources but that they could not be turned into immediate liquidity as someone needs to dig them from the ground and sell them.
He said the administration is working on reviving the mines which he said were crippled by the PF administration, wondering why in the neighboring Congo mines were being opened in the last 10 years and none here in Zambia.
“Our responsibility is to correct the errors PF left behind,” said Dr Musokotwane, arguing that so far US$1.5 billion has been invested into North Western Province.
