DAILY
Friday
17, April 2020
Own up, envoy tells
former ministers
By AARON CHIYANZO
THE previous roles of the eminent persons who today
are undermining the current economic status of Zambia
are to blame for most of the fiscal woes the country is
grappling with Zambia’s envoy to Ethiopia Emmanuel
Mwamba has said.
Mr Mwamba said some of the decisions of the eminent
persons in the financial sector brought harm to the economy
than good.
He was reacting to claims by former Ministers of Finance,
Situmbeko Musokotwane, Ngandu Magande, Felix Mutati,
and former Minister of Commerce and Trade, Dipak Patel
and former Bank of Zambia Governor, Caleb Fundanga in an
open letter to President Edgar Lungu and Minister of Finance
Bwalya Ngandu that Zambia was in financial crisis and
suggesting the primacy importance of clinching the IMF deal.
“I responded to this open letter by urging the group to also
acknowledge their previous roles that probably brought harm
to the economy than good,” Mr Mwamba said in a second
open letter to the group.
And Mr Mwamba has called for a mini economic and
public policy Indaba on social media.
He said he was amazed by the response of financial
analysis and other stakeholders in the sector to his earlier
open letter to the eminent persons, “How We Love Foreign
Things”.
“The rich arguments of Alexander Nkosi, Public Policy
Specialist, Mwamba Peni II, International Economic
consultant Trevor Simumba, University lecturer, Mbinji Mufalo
and Economist Noel Nkhoma among others were devoid of
insults or demeaning language, but genuinely focused on
debating the urgent public matters affecting our country,” he
said.
Mr Mwamba said by now Zambians should know that
solutions to the problems facing the country would come
from themselves and from within us.
He said the belief that some people on high horses from
foreign lands would come and resolve Zambia’s challenges
should be deemed as self-deception.
Mr Mwamba said Zambia’s GDP had been extremely
understated for decades, saying he still contended that the
country’s economy was not at the verge of collapse.
He however said Zambia’s GDP might require rebasing to
reflect the true economic activities in the country.
Zambia did not apply
for IMF facility - Minister
By BUUMBA CHIMBULU and
OLIVER SAMBOKO
ZAMBIA did not apply for
the International Monetary
Fund (IMF) facility which
has offered immediate debt
relief service as it does not
meet the required criteria
such as a cumulative loss
of revenue and increase of
expenditures equivalent to
at least 10 percent of the
Gross Domestic Product
(GDP).
This explained why Zambia
is not among the 25 countries
which have received the debt
relief under the revamped
Catastrophe Containment and
Relief Trust (CCRT) offered
the International Monetary
Fund (IMF), Finance Minister,
Bwalya Ng’andu, has said.
He however said there
were other facilities that
Zambia may benefit from as
COVID-19 pandemic evolved
and which government has
applied for.
CCRT is among the many
facilities currently being
offered by multilateral
partners to its member states
as part of the response to
help address the impact of
COVID-19.
“For me to apply for that it
will not make sense because
we do not qualify, how would
apply for what you do not
qualify for. So what you do is
look at other windows which
you qualify for. “That one we
do not qualify and that is the
reason we are not there. We
have not bothered to apply
for that because we do not
qualify,” Dr Ng’andu said
in an exclusive interview
in Lusaka yesterday. Dr
Ng’andu explained that
having a facility with the IMF,
which Zambia did not have,
was among the requirements
for a country to qualify.
He further explained that
targeted countries were those
with a cumulative loss of real
GDP of 10 percent and loss
of revenue and increase of
expenditures equivalent to at
least 10 percent of GDP.
The Minister said a
country’s per capital
income should be below the
International Development
Association’s operational cut
off (currently US$1,175).
“Zambia does not meet
the above stated criteria for
eligibility or qualification to
access the resources that
are available under this
facility because its per capital
income is well above US$1,
175,” Dr Ng’andu said.
Dr Ng’andu explained that
Government had written to
all multilateral institutions
and was currently waiting for
responses.
He cited that Government
was discussing with the
African Development Bank
(AfDB) regarding a facility
which was available.
AfDB this month unveiled
a US$10 billion Response
Facility to curb COVID-19.
“We are also discussing
with the African Development
Bank, there are a number of
facilities which have been
made available and we are
waiting for a formal letter
from them after which we will
announce
Home News
| 3
‘HH SPONSORED VERBAL
ATTACKS ON CHITIMUKULU’
By SILUMESI MALUMO
WE are aware that Hakainde Hichilema
sponsored Republican Progressive
Party leader James Lukuku to insult
Paramount chief Chitimukulu and
this is a fact, Patriotic Front (PF) Vice
chairperson for mobilisation Geoffrey
Bwalya Mwamba has said.
And former Zambia’s envoy to Malawi
Richard Kachingwe has backed the
Bemba chiefs to take sanctions against
UPND and its surrogate for insulting
Mwinelubemba.
Mr Mwamba said Mr Lukuku was
a surrogate of the United Party
for National Development (UPND)
leader Mr Hichilema and he used to
utter disparaging statement against
Mwilubemba.
He said at a media briefing yesterday,
he was on firm ground that Mr Hichilema
sponsored Mr Lukuku.
“I challenge Mr Hichilema to apologise
to Mwinelubemba and the Bemba clan
for such disparaging statements,” he
said.
Mr Mwamba who is also former UPND
vice president for administration, warned
(From page 1)
“I am ready for us to
discuss a few more measures
with the business community
who are going through a
rough patch. This is a tough
time to do business because
your costs are high. We
are trying to make sure that
businesses are not collapsing.
“Businesses are collapsing
because of this [COVID-19]
and once that happens, it is
very difficult to bring them
back. So the measures are
intended to achieve that and
to sustain the businesses
amid this COVID-19,” the
Minister said.
Dr Ng’andu indicated that
Government had for the past
two weeks been meeting with
the business community for
consultations.
He explained that
formulating the measures
yet to be announced need
consultation before they were
implemented.
The Minister said his
ministry had been working
closely with Ministry of
Commerce, Trade and
Industry and the Bank of
Zambia among others.
“We have been very active
in involving the business
community. We have spent
Mr Mwamba
that if Mr Hichilema failed to apologise it
would lead to sanctions.
“As Bembas we feel like Mr Hichilema
is the one who sponsored Mr Lukuku
to utter or insult Paramount chief
Chitimukulu because we know that
Lukuku is Hichilema’s surrogate.
“So if indeed Mr Hichilema my brother
he is innocent then him and UPND
should distance themselves from that
statement and he should come open and
tell the nation that they are not part of it.
“Because if Mr Hichilema does not
apologise then that statement will lead to
a lot of things. It is a timely reminder to
Mr Hichilema to do a wise thing,” he said.
Mr Mwamba said the Bembas would
not allow people to dent the image of
Mwinelubemba.
He said it was prudent that chiefs who
were well respected in the nation should
not be dragged in politics.
Meanwhile former Zambia’s
Ambassador to Malawi Major Kachingwe
said the Bemba chiefs were on the right
path to take necessary action against
people insulting Mwinelubemba.
He said in an interview yesterday,
people especially Bembas could not be
paid to insult the Paramount chief and go
scot-free.
Maj Kachingwe said respect was
paramount, therefore, those who want
to demean traditional leaders must face
sanctions.
Recently chief Chikwanda of Mpika
district told Daily Nation that Paramount
chief Chitimukulu has called for Ilafya
council meeting and it resolve want
actions to be taken against the UPND
and Mr Lukuku.
TAX RELIEF BONANZA
…more tax relief measures coming to ease pressure on businesses
the last two weeks consulting
and talking to them.
“Although it is not possible
to implement each and every
suggestion, the measures that
we agree on are the measures
that are coming directly from
them [business community]
and effecting them,” Dr
Ng’andu said.
Three weeks ago, Dr
Ng’andu offered tax relief
measures to key economic
sectors such as mining and
manufacturing.
Other taxes announced
were suspension of excise
duty on imported ethanol for
use in alcohol-based sanitisers
and other medicine related
activities subject to guidelines
to be issued by Zambia
Revenue Authority.
Government also removed
provisions of Statutory
Instrument No. 90 relating
to claim of Value Added Tax
on imported spare parts,
lubricants and stationery to
ease pressure on companies,
among others.
And Government has started
rolling out a stimulus package
to help ease liquidity pressure
currently being faced by the
business community which has
been caused by the COVID-19
pandemic.
This means that the all those
businesses who need support
to cope with the suppressed
economic activities can
access this through their
commercial banks.
Small and Medium
Enterprises (SMEs) have been
encouraged to access the
facility.
The K10 billion Targeted
Medium-Term Refinancing
Facility (TMTRF) is meant
to strengthen the financial
sector resilience in the wake of
COVID-19 which has potential
devastating impact on the
domestic economy.
The TMTRF which took effect
on Wednesday this week,
is also meant to enhance
financial resilience.
The primary purpose of
the Facility, therefore, is to
strengthen and enhance the
resilience of the financial
sector and support economic
recovery in the wake of the
COVID-19 pandemic.
BoZ Deputy Governor
for operations, Francis
Chipimo, said agriculture,
manufacturing, energy and
tourism industries would be
prioritised for financing under
this facility.
Dr Chipimo said in a letter to
all Heads of Financial Service
Providers that a certain portion
of this facility would be made
available to support non-
financial corporates in other
sectors as well as households.
“Under this facility, the
BoZ shall provide liquidity
to eligible financial service
providers for onward lending
to viable and priority sectors
of the economy. The priority
sectors shall be as identified
in the Seventh National
Development Plan,” he said.
The Facility is an exceptional
Advance available to FSPs that
will satisfy the eligibility criteria
as defined under Section
five (5) of these Terms and
Conditions.
Zambians in China safe, says Malanji
By OLIVER SAMBOKO and MOSES
SINJWALA
NO Zambian national living in China
has been affected bythe reported
racist mistreatment of Africans in
the Chinese city of Guangzhou or in
any part of that country, Minister Joe
Malanji has said.
He said in an interview that the
Zambian embassy in China was in touch
with all Zambians living in that country
and that no one had ever reported of
been maltreated by either the local
people or authorities.
Some International media outlets have
been reporting that some Africans in
the commercial hub of Guangzhou are
being evicted and discriminated against
amid coronavirus fears with state police
ordering bars and restaurants not to
serve clients who appear to be of African
origin.
But Mr Malanji said as far as the
Ministry of foreign Affairs was concerned,
all Zambian nationals living or visiting
Mr Malanji
China have valid documents and in that
country legally.
He said while his ministry was not
aware of any individual or Zambian
family in China who has been affected
by what is been reported in the media,
as a precaution measure, the Zambian
embassy in China has been directed to
ensure all nationals were safe.
Mr Malanji said the truth of the matter
could be that some nationals from some
African countries who had their visas
expired were the ones who were having
challenges to access accommodation
or were running in the street to avoid
detection.
“What is there is that any country, if
your VISA expires no hotel is supposed
to allow or accept you in because by
virtual of your expiry of your documents
then you are not supposed to be in that
country,” he said.
Mr Malanji assured Zambian nationals
in China and locals who have their
relatives in that country not to worry
of fear about anything because their
Government through the Foreign Ministry
and the Zambian Embassy in Beijing was
always at hand to protect their interests.
And Mr Malangi said the Ministry was
aware of the Zambians who had been
caught up in the various travel restrictive
measures implemented in different
countries in the wake of the Covid-19
pandemic.
He said through the Missions, the
Ministry was working to find a solution
to the matter and stranded Zambians
were encouraged to get in touch with the
Missions abroad.