Zambia`s current situation is alarming , parliament has approved the debt ceiling from k60billion to k 160 billion as if its not hardly a year since the minister increased Zambia`s debt ceiling from k35 billion to 60 billion even when concerns were given over this increase. Put in mind that at a debt of only $6.4 billion every Zambian , male , female, child , old , young , lame, normal owes an amount of $ 452 (K5, 155) per individual. This is serious. Now consider these facts , Zambia`s current inflation is at 22.9%. Just in july 2015 the inflation rate was at 7.1 percent. What this means is that goods and services have gone up in prices, to me this is a 100% increment. A simple example is that the 2KG sugar you used to buy in 2015 at k12 is now selling at k 27.
We spending US$ 25 Million every month on importing power, when we could be using that money to fund sustainable mini hydro plants in the northern circuit. Just so you know, we importing power in kwacha terms at K285,000,000 every month, and remember we servicing debts at about the same amount every month. By end of 12 months Zambia would have spent K3,420,000,000 on electricity imports representing about 6.2% of our annual budget projected income. Imagine we spending only K1,273,768,804 on social protection representing 2.4% of our budget.
We are spending K700,913,011 on both University infrastructure as well as student loans. Students loans only account for K310,913,011 and the remainder K390,000,000 is what is suppose to go to university infrastructure. You want to tell me we are prioritizing investment in youth for sustainable development with this kind of investment? The two universities are still closed and someone still goes to bed comfortable.
You increase domestic borrowing, u push the lending rates even higher. Banks are already failing to give loans because the rates are between 34-42% ( no wonder Barclays is selling out) . And you want to tell me you want to promote entrepreneurship and business development? This is the best example of how to strangle economic growth and our Finance minister seem to be an expert at it.
In 18 months we have managed to move from a positive looking economy into an economy that is in the intensive care. Otherwise tell me why the Minister wants to raise the debt ceiling. Our External debt alone is almost US$ 7 Billion. Add the over K26 Billion Internal debt and you still want some more?
Our economy is not producing. We can go ahead and borrow but the end result will be us getting into deep debt we cant pay back. We need to change our approach. Instead of been restrictive, we need to allow for expansionary policies that make the market drive itself and open up more opportunities. By clogging the banks and the entire financial sector we are killing economic growth and ultimately economic and national development.
The closure of the two universities will come back to haunt us not in the too far distant future. Meanwhile Zambia recorded a trade deficit in January 2016 valued at K172.6 million representing a 76.7 % decrease in trade deficit from the K739.5 million recorded in December 2015.This means that the Country imported more in January 2016 than it exported in nominal terms. ITS TIME TO WAKE UP , ITS TIME FOR A REVIVAL AND A REVOLUTION. Thank you!!!!!!! MILIMO MILTON