Mundubile is right on foreign reserves – Saki

…argues that UPND’s macroeconomic gains have not translated into improved living standards for ordinary citizens 

By BARNABAS ZULU

STATE Counsel Sakwiba Sikota has thrown his weight behind Brian Mundubile’s criticism of the government’s celebration of the country’s US$6.5 billion foreign exchange reserves, arguing that macroeconomic gains have not translated into improved living standards for ordinary citizens.

In a statement yesterday, Mr Sikota defended Mr Mundubile’s criticism of the UPND’s US$6.5 billion in which he said Zambians cannot eat macroeconomic stability, arguing that the government’s emphasis on foreign reserves has been overlooking the daily struggles faced by many Zambians.

Mr Sikota said while Special Assistant to the President for Finance and Investment Jito Kayumba was correct that strong foreign exchange reserves contribute to macroeconomic stability, inflation control and exchange rate stability, such arguments were ignoring the realities confronting ordinary citizens.

“He (Jito Kayumba) argued that inflation, exchange rate stability and foreign exchange reserves were not abstract concepts but factors that directly influenced the cost of living and the country’s economic resilience. This is however only half the story,” Mr Sikota said.

He explained that macroeconomic stability alone could not address unemployment, stagnant wages, high electricity tariffs and the high cost of living.

“Stability alone doesn’t put food on the table today,” he said.

Mr Sikota argued that official economic indicators often conceal inequality, saying stable inflation figures mean little to households struggling with rising food prices.

He also said foreign exchange reserves may protect the country against external shocks but do not automatically shield households from hardship.

“Forex reserves protect the country from shocks, but they don’t automatically protect households. If 80 percent of people work in the informal sector with no savings, no insurance and no safety nets, then a national buffer doesn’t buffer them,” he said.

Mr Sikota also criticised what he described as the government’s focus on macroeconomic achievements while basic public services remain under pressure.

He cited shortages of medicines, overcrowded classrooms, inadequate diagnostic equipment in major hospitals, high unemployment, poor sanitation at learning institutions and increasing crime as evidence that ordinary people were yet to benefit from the country’s improved economic fundamentals.

Mr Sikota said Mr Mundubile’s message had resonated with many Zambians because it reflected the hardships they continue to face.

“BM8 (Brian Mundubile) saying ‘You can’t eat macro stability’ is less about economics but more about accountability. It means: ‘Don’t just give us charts. Show us cheaper food, jobs and working clinics.’”

He argued that part of the country’s foreign exchange reserves should be used to address urgent social and economic challenges rather than being preserved while citizens continue to struggle.

Mr Sikota maintained that economic stability should be accompanied by policies that create jobs, lower the cost of living and improve access to quality public services.