Zambia’s domestic and external debt for the year 2013 is projected to reach 37 percent of the country’s GDP.
Speaking this morning at media briefing, Sectary to Treasury Fredson Yamba, said in the continued discussions with the International Monetary Fund (IMF), held from the 17th to 24th of September 2013, it has also been agreed that the fiscal deficit for 2013 will be higher than was projected.
Mr. Yamba has told journalists that from the discussions which are a continuation from the IMF July 2013 mission, government and the IMF have agreed on the broad medium term goals of economic policy aimed at maintaining strong growth, lowering the budget deficit and maintaining low inflation.
Mr. Yamba notes that these measures are in line with the strategic priorities of the government’s Medium Term Expenditure Framework (MTEF) that has take cognizance of the tight fiscal pace available.
Speaking at the same media briefing, IMF mission Chief John Wakeman-Linn observed that to maintain strong economic growth, it is important for the country to safeguard competitiveness and build buffers against external shock.
Professor Wakeman-Linn says competitiveness would suffer if the higher wages currently being introduced by the government in the civil service do not match with higher productivity.
The IMF Team will return to Zambia in January, 2014 to initiate program discussions which are being held under Article four of the Articles of Agreement of the IMF.
kalobwe
September 24, 2013 at 9:58 pm
We can’t have very old standard two’s to run the economy affairs of our country in this day and age! This mistake should never be repeated again!
Medication
October 4, 2013 at 7:17 pm
CANCER AND HIGH BLOOD PRESSURE RELATED CONDITIONS. CALL 0979546725 AND ENQUIRE ABOUT STEMTECH MEDICATION. FOR MANHOOD PROBLEMS, ASK FOR PYTHO MEDICATION. MEDS MANUFACTURED IN SA AND US. NATURAL INGREDIENTS – NO SIDE-EFFECTS.
Observer
September 24, 2013 at 10:18 pm
Funny how everyone goes quite when it comes to serious financial matters of our beloved motherland. Everyone has something to say patterning to politics and lifestyle but people suddenly go mute in this instance. Interesting!!!!
form four
September 25, 2013 at 11:04 am
Aprt from that observation what is your say a regards this matter then?
icinshikululwa
September 24, 2013 at 10:39 pm
Good obzavertion; @Observer.C U 2moro men. Gud nite; God blss.
VMMM
September 24, 2013 at 10:40 pm
@obersver, you are right and spot on, this is an important matter that should have attracted an interesting debate but it seems everyone has disappeared. It shows how we waste time discussing and swearing at other people on matters that add no value to our well being as a people.
It sure also shows how we do not understand the basic economics of our country and the impact of having 37% debt of your GDP.
Gaddafi
September 24, 2013 at 11:23 pm
Gosh !!
May the “REAL PF SUPPORTERS” stand up !
Okay , @ Grade one level what is. 1-2= ??
The Government is failing Economically … Well, maybe Politically u’re doing the talkin & claiming Economic success as well..but reality has it u’re taking as back to the KAUNDA Mistake .
Alangizi Akulu
September 25, 2013 at 7:44 am
Budget deficit, my foot! Who didn’t see it coming? Message from IMF is simple: “Deal with this or burst. Will check on you again in 2014.” Btw, about time we had a national consesus on what ministries to have so as to have the same ministries, irrespective of the party in power. More so this will give shape to govt and plug creation of wierd ministries at the whim of an individual for the sake of creating employment for friends,e.g., Minister of Vendors’ Desk (with 5 deputies). This should also lower govt running costs and forestall deficit.
PMM
September 25, 2013 at 7:48 am
Their are no higher wages to talk about for the general civil service in Zambia, its just an adjustment on salaries to much the efforts of well meaning Zambians. To be competitive you need resources which monies are a part, this notion of low wages has not benefited Africa for long, hence Mr Linn should not blindfold us any-longer. The basic law of a well functional economy is that people should have resources to use invest and the government should spend.
The Engineer
September 25, 2013 at 8:00 am
@ Observer, you a true observer indeed. Lets see those PF puppets contribute on this matter. When we questioned where the PF government would get the money from to give such rocket increaments to civil servants. They were busy cerebrating and saying we are just jealous. The money civil servants get comes from the private sector such as the mines and if they are demotivated it will be difficult to sustain hence go back to HIPC.
ukwalinsonke
September 25, 2013 at 8:09 am
ECONOMICS IS GOOD FOR ONLY ONE REASON……
IT GIVES ECONOMISTS JOBS… NOTHING ELSE!
katwishi mukwai
September 25, 2013 at 8:19 am
The question is-how will government sustain the huge wage bill in the long run? Popularlist politics will kill us in the end.Mind you,the debt was cancelled ,we are borrowing again.This money will have to be paid back,not from lip service.
Alangizi Akulu
September 25, 2013 at 8:31 am
And rocket-speed decentralisation is costing us too. Much as devolution of power promotes efficiency, it should not be drowned in populist motives. The wholesale recall of the foreign service personnel also gobbled billions – to say nothing about the record-high bye-elections.
icinshikululwa
September 25, 2013 at 9:28 am
No country; developed or undevelope, can go without the goverment borrowing. Ask…
Alangizi Akulu
September 25, 2013 at 9:50 am
Mwe Chishikululwa, it is not about borrowing per se. The concern is how you go about expending that borrowed tong, and how your monetary descipline impacts on such derivatives as deficit et al. No qualms about borrowing. None.
The Engineer
September 25, 2013 at 1:33 pm
@ Icishikululwa ubukopo!
kazeze
September 25, 2013 at 4:38 pm
Economists please explain to us what GDP is and the implications of this report. This will enable many to post comments from a position of knowledge.
Medication
October 4, 2013 at 7:17 pm
CANCER AND HIGH BLOOD PRESSURE RELATED CONDITIONS. CALL 0979546725 AND ENQUIRE ABOUT STEMTECH MEDICATION. FOR MANHOOD PROBLEMS, ASK FOR PYTHO MEDICATION. MEDS MANUFACTURED IN SA AND US. NATURAL INGREDIENTS – NO SIDE-EFFECTS.
Swelling Waterstops
January 9, 2014 at 6:50 am
Thank you for sharing.
George N. Mtonga
March 3, 2014 at 11:13 pm
These numbers are rather alarming. For a developing nation its okey to have debt, but the question is where is the money and who is using it and for what purpose. If this money is designed to be paid back, then it should be invested to produce returns that mast the interest that we pay for this money. But when we borrow $5M and we waste it, and cant pay back the fact remains that we still owe that money. What this eventually does is that we start loosing our political sovereingty because of money. NOW AMOUNT OF MONEY should trample on the need for Zambia to become a self_ruler: IN HER OWN RIGHT.