Mvunga warns South Africa

Mvunga warns South Africa

Central Bank of Zambia Governor CHRISTOPHER MVUNGA says he is disappointed with the recent remarks attributed to South African Finance minister Tito Mboweni.

Mr Mboweni is said to have said that South Africa should not end up like Zambia economically.

Mr. Mboweni has on several times commented on Zambia’s dwindling economic fortunes with his latest statement Zambia is a failed state.

But Mvunga, whose appointment as governor was frowned upon by Mboweni reminded the SA Finance Minister of the sovereignty of Zambia and claimed that the continued machinations of Mboweni can risk the good relations between Zambia and South Africa.
According to Mvunga, it is saddening that Mboweni has continued to put pins in the Zambia and South Africa relations which dates way back with Zambia being an aid to help South Africa gain independence.

Last week, Fitch Ratings and Moody’s Investors Service cut South Africa’s debt assessments deeper into junk, saying the state may struggle to stick to its plan to rein in spending.

Zambia this month defaulted on its Eurobonds since the onset of the coronavirus pandemic.

But according to the Bloomberg BusinessTech, Mboweni said South Africa can’t implement a pay deal with public servants because it would precipitate a fiscal crisis.

He further stated that Zambia was an economically failed state and South Africa could head in the same direction.

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