IMF, WB BLAMED FOR ZAMBIA’S ECONOMIC  HARDSHIPS

By BUUMBA CHIMBULU

THE International Monetary Fund (IMF) and the World Bank have been blasted for imposing harsh economic conditions on Zambia which have condemned Zambians into extreme economic hardships. 

Bob Sichinga, the ex-Minister of Commerce, Trade and Industry is blaming the Bretton Woods twins for the economic hardships Zambians have been subjected to as a result of the imposed condition such as the phasing out of the Farmer Input Support Programme (FISP). 

Mr Sichinga told the IMF and the World Bank to stay away from dictating decisions for Zambia economic trajectory as the country has equally educated citizens able to make sound decisions.

Mr Sichinga said the IMF should not dictate to Zambia on what to do.  

He was speaking at a Mid-Year Economic Performance and 2024-2026 Medium Term Budget Plan yesterday in Lusaka where the IMF Resident Representative, Preya Sharma, were present, 

He said the IMF and their counterpart, the World Bank, should instead listen to what Zambia wanted to do to develop as opposed to imposing its harsh conditions which were not affecting those in leadership but the ordinary citizens. 

“IMF you are part of the problem. I am not a diplomat, so I am not going to be polite to you. You are part of the problem. Your institution has been part of the problem together with your colleagues at the World Bank. So please change the attitude rather than coming here to tell us what we should do. Listen to what we want to have development,” Mr Sichinga said.

He said there is no way a country could develop in five years as per their programme Zambia was signed on.

“You come for five years. You bring these programmes for five years after that, you walk away. No development takes place in five years. It does not, so, we want you to change your approach. You should listen to us. We are equally educated just as you guys are at the IMF and the World Bank,” Mr Sichinga said.

Mr Sichinga was of the view that the IMF was responsible for some decisions such as phasing out the Farmers Input Support Programme (FISP) and urged Government to instead fix, change and enhance the programme as opposed to phasing it out.

“Do not get rid of FISP. Do not even try it. Fix it, change it, enhance it, and make it more efficient. This electronic voucher system is not the solution because your register is what you have to sort out,” Mr Sichinga said.

He also accused the banking sector of suffocating Small and Medium Enterprises (SMEs) by offering high interest rates of around 26 percent.

“Your colleagues from the banking sector are part of the problem. You borrow best rates from the Bank of Zambia around nine percent and lend it at 26 percent. Which business will survive and that is minimal,” Mr Sichinga wondered.

Meanwhile, Mr Sichinga said it was time to review the policies in the mining sector and add value to the copper.

“It is about time that we started talking about specific value chains and value addition. Take that copper, the 800, 000 metric tonnes out of the market make the products here,” Mr Sichinga said.

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