By Staff Reporter
Trying to develop the country with President Hakainde Hichilema’s economics is like getting into a bucket and trying to lift oneself from the same.
In a press statement from the United Kwacha Alliance (UKA) press briefing held today, the alliance paraphrased former British prime minister Winston Churchill’s words on the impossibility of trying to develop the country with President Hichilema’s economics as it was like one trying to lift themselves from a bucket.
The alliance accused President Hichilema of successfully shutting down the economy, stating that the economy was now back to the pre colonial era, where the economy only worked for civil servants and salaried workers only.
“Weak economic policies have resulted into; weak Kwacha, unstable high fuel prices, high cost of goods, high cost of transport, no income, more hardships, more desperation, more stress, more crime, more mental health breakdowns, high poverty levels and high cost of doing business is the current synopsis of the Zambian economy under President Hichilema’s and his new dawn administration,” UKA stated. “On the other hand a strong economy increases income to individuals, households and businesses, reduces poverty, provide jobs and increases affordability of goods and services and unlocks the local private sector for maximum development.”
They argued that the high cost of living could be traced to the perceived mopping of excess cash from the economy, which they described as a hoax
“By increasing the Monetary Policy Rate, MPR and the Statutory Reserve Ratio, SRR, President Hichilema has shut down the local economic sector in one single blow. Less money in local circulation has directly hit local small and medium businesses with very LOW SALES whilst the cost of doing business is equally increasing. 2 opposites in the same market,” UKA stated. “The majority poor who depend on the informal sector can no longer AFFORD the basics such as mealie meal hence the cries in the compounds of njala! insala! Hunger! b) The fluctuating fuel prices. A closer look in the foreign exchange regime indicate that all the major convertibles are dancing to the song of fuel prices by the ERB. This is extremely catastrophic in an import led economy with more than 80% of the products on the shelves of tutemba’s, groceries and supermarkets from outside the country.”
UKA argued that as long as the dollar was dancing, all the Zambian’s will have to dance “gule wamkulu to the high cost of living and doing business, which they said had now been compounded by the long hours of loadshedding.
They suggested that to address the situation, monthly reviews in fuel prices must be scrapped off forthwith and be replaced with only two reviews on each half of the year.
“Local small and medium businesses: Incentivise small and medium local businesses to produce and employ more locals. Small and medium enterprises form the basis of the local economy. Right now they suffocated. More spending: Encourage locals to spend more. When people don’t spend the economy suffers, a classical example of the Zambian economy at the moment. Modern economies grow through spending. This will involve targeted incentives to workers, households, communities and local businesses,” UKA argued. “New Money: Zambian economy needs ‘new money’ through taxation in the mining sector, agriculture and by removing tax holidays being enjoyed by multi- national companies, MNC’s. Agriculture: Radical agricultural policies from wards to provinces. Maximum exploitation of the agriculture sector for affordable food, forex earner and massive job creation.”
They stated that major industries such as copper mining, construction, beverages, food, textiles, chemicals and now fertilizer production remained largely in foreign hands, therefore local industrialisation of these sectors would result in massive employment opportunities and a stable local economy strong enough to withstand outside economic shocks.
“Mining: The mining industry needs urgent policy reforms that would benefit directly the local economy. Minerals from the mining sector can collectively pay Zambia’s debt in 3 to 5 years. The apex mining policy is one that has Zambians (both Government and Zambian owned mining companies) owning and running the industry profitably,” UKA stated. “Tourism: Tourism remain largely far removed from locals in Zambia. High prices of bed spaces and food remain out of reach of many locals pockets or mobile money. The industry itself remain dominated by foreigners which carter mostly to fellow foreigners coming in the country. Promotion of local tourism will unlock massive potential in both revenue and job opportunities for the local economy.
“Zambia needs a new economic order built by locals, for locals and benefits a local Zambian. President Hichilema and his administration lack the capacity to deliver economic prosperity to all Zambian’s.”
