Here is what is wrong with his Economic Team and their Policies

Amb. Emmanuel Mwamba Wrote;

President Hakainde Hichilema on Thursday March 6th, 2025 met leaders of banking and financial institutions.

He should not blame anyone but himself.

Banks have no business lending to the private sector and SMEs if they can reap super profits from a government relying on excessive borrowings from the market as this government has shown.

The banks are reaping super profits by sinking their money in government and Treasury bonds.

He has a Minister of Finance and Bank of Zambia Governor that work like they are residents or representatives of the International Monetary Fund (IMF) than officals from an elected government.

Since 2021, the duo has implemented archaic financial policies that restrict money supply and foreign exchange.

This has been done by significantly raising statutory reserve ratio and Monetary Policy Rate policies that have made loans and overdrafts extremely expensive.

Further, the Ministry of Finance, while letting government accumulate more debts and arreas, has refused to dismantle the local debt.

All these stiff measures have been done in a desperate attempt to control one parameter-inflation!

Yet their attempts to bring the inflation rate to a single digit number has consistently and lamentably failed, 3 years in a roll.

Musokotwane has refused to dismantle the local debt now standing in excess of K235 billion ($8.3billion).

If paid, this can fuel economic activities and growth and create jobs and wealth in the local economy.

They lied that the debt government owes contractors, suppliers and providers of goods and service was fictitious and was as a result of dubious entities supplying “air”.

They asked the national audit office to provide a report on outsanding claims.

When the Auditor General affirmed the debt, they rejected the report and its findings.

They then hired the best forensic auditors in town, who have,contrary to their expectations, subsequently confirmed that the debt accumulated is true…yet they won’t pay!

This debt continues to accumulate interest.

Musokotwane has chosen to focuse on foreign debt instead, resulting in a reschedule exercise that lie bungled immeasurably.

Then there is a volatile exchange rate market that has seen the Kwacha become infamous as one of the worst currencies in the world.

Musokotwane will not implement the Bank of Zambia Export Proceeds Tracking Mechanism that compelled all importers especially the mines who account for 70% of Zambia’s exports, to ensure that export proceeds reported, repatriated and deposited into a local account.

This would have wiped out the current persistent shortages of foreign currency on the market.

Musokotwane would rather believe the mines that are threatening legal action citing the possible breach of the secretive mining agreements that grants unfettered authority for the mine houses to keep the export proceeds abroad.

Musokotwane abolished the non-deductible mineral royalty tax that was earning the country $1billion a year since 2019.

He has further provided more tax and other incentives to the mine houses that robs the country of mobilisation of domestic revenue.

Just recently, he scrapped off the 15% export tax on emeralds, gemstones, precious stones and other metals in the sub-sector.

He has discontinued and abandoned a legal process from FQM to recover $2.5billion stolen from Kansanshi Copper and Gold Mine, jointly owned by First Quantum and ZCCM-IH.

Musokotwane and Kalyalya have continued to resort to archaic methods like suddenly changing the currency to new notes.

They believe the bar talk that, out there are millions of stashed Kwacha, hidden God knows where!

Many people believed President Hichilema to be an economic manager as corporate leader, farmer and economist.

He has disappointed farmers more, shocked economists further, and more businesses have closed down under him than any other President before him.

He pays lip-service to other economic sectors such as tourism and agriculture, sectors that should excite the economy into faster growth and job creation.

According to the Jesuit Centre for Theological Reflection (JCTR), the Basic Needs and Nutrition Basket (BNB) for February 2025 in Zambia stands at ZMW 11,599.12.

Whatever the rhetoric, this economy has tanked! And President Hichilema only has one national budget before elections.

It’s not possible that he can manage a turn-around.