Any person opposed to aid in Zambia is viewed as an enemy. Worse still if such a person is Zambian. He will be classified in the most unpalatable terms that the dictionary can offer to the politicians and those that subscribe to the ideology that aid from Europe and the United States is Africa’s right. Some believe that the colonial masters must pay back the proceeds of the scramble for Africa. They further assume that the payback time is not yet over! But the question is: Does Zambia need financial aid? Has the assistance so far provided weaned Zambia from the dependence syndrome? Its worth noting that to date, Zambian leaders are still going on global trotting missions to ask for financial aid. The recent global financial crisis seems also, paradoxically, to have catapulted the begging bow! Some argue that those responsible for the recent global financial crisis have a responsibility to help African countries survive through the economic turmoil.
Looking at the amount of financial aid that Zambia has received, I believe very strongly that Zambia does not need any more financial aid! Donors have made every effort to support our economy, but alas, we are still degenerating! The blame is definetely not on donors but on our leaders , yes on our failed leadership. I believe that Zambia, more than anything else, needs good, faithful and visionary leaders. Is it not flabbergasting and enigmatic to see an Zamibian leaders going round Europe, America and Asia to woo foreign investors by telling them that Zambia has rich natural resources? Have you ever seen a poor man with a treasure who goes out to a rich man to ask him to come and explore the treasure and then in turn give the poor man a little something in appreciation? It sounds ridiculous, but that is what is exactly happening among our leaders!
We are so engrossed in the idea that someone from out there must come and sort out our economic difficulties. The rich natural resources that we have is proof enough that we do not need any more financial aid but a leadership with a vision to motivate its people to exploit the resources. In Zambia, the cry for foreign investment is the politician’s breakfast, lunch and supper. They would rather give tax incentives to foreign investors than indigenous entrepreneurs. We have seen local businesses go down without government help but government is quick to attend to foreign investors! This, to me, presents an inferiority complex on the part of our leaders.
Listening to this years budget presentation by Dr Musokotwane, I hardly saw any plans for economic development. Much of it was just traditional allocations! There was nothing in it to stimulate thinking and action on ordinary citizens. There was no mention of small and medium business enterprises in the budget. Simply put, I couldn’t figure out where we are going as a country in this year's budget- no visionary approach!
You can give a man a lot of money and other resources, but if he has no wisdom to use it in order to wean himself from dependence on aid, you are simply wasting your time!
Lack of good leadership has resulted in aid going down the drain. What we need now, is investment in leadership training among the youths. I should have actually started with a call to leadership training among our current men and women we elected! The executive and parliament should start attending leadership training sessions. I think that pastors with sound biblical teachings can help in leadership training.Perhaps, this might salvage the government from the current underperformance!!!!
Thursday, April 2, 2009
Tuesday, January 27, 2009
ZAMBIANS MUST BRACE FOR HARD TIMES
BRACE FOR HARD TIMES
The current economic climate in the country is indicative of hard times to come. Although, politicians were boasting of reductions in fuel and mealie-meal prices being indicative of a working government, it is clear , at least to me, that the boasting is highly misplaced. Why do I say so? First of all the reduction in fuel is a matter of course because the global price for the commodity drastically plummeted to about $ 40 per barrel. With such a reduction on the world market, we all expected the pump price to reduce. It would have been morally wrong to maintain high pump price under the circumstance. Secondly, the high price of meali-meal was the ruling Party’s own making. How? During the run up to the last presidential bye-election, ruling party increased the maize floor price through Food Reserve Agency to please farmers. The farmers were happy to make more money. Did they expect the price of mealie-meal to remain the same with an increase in maize floor price? That would have been ridiculous! With the euphoria of elections gone, government was now faced with the reality: high mealie-meal price- caught up in their own web! So the only solution for them to escape the wrath of the citizens was to release maize at lower price through the FRA. Do you call this success when a man is simply sorting out the messy he has created?
The dark cloud that hangs over the mining industry will have serious ripple effects. Do not think it will just affect the employees in the mining industry. Take for instance, the closure of Luanshya Mines Plc that has left almost 1,500 workers in the cold. The government has lost a lot of revenue it expected to collect in form of corporate tax and pay as you earn, not just from LCM but also from the contractors that were doing business with LCM. If each employee was contributing an average of one million kwacha in form of PAYE, then government has lost an anticipated monthly contribution of K1.5 billion! The banks that gave out loans to LCM employees have also lost out. There will be a reduction in bank deposits ,in due course. The buying power in Luanshya will reduce and so there will be less spending and this will affect shop owners.
The suspension of operations by Zambian Airways is another case in point. This is not just about an airline suspending its operations. Whatever revenue the government , through its agencies, was collecting from the airline and its employees will be no more.
Even though one minister is quoted to have said the suspension will not largely affect the tourism industry, I think that such a statement amounts to burying the head in the sand!
With the aforesaid, governments revenue from local resources this year will definitely be reduced. And this is where the hard times will set in! Prophet of doom? No. We must begin tightening our belts before another does it! I am wondering what will happen to PAYE and the other government levies in this year's budget. I am waiting to see what Dr Musokotwane’s budget will unveil under the circumstances. A chain reaction is surely coming!
The current economic climate in the country is indicative of hard times to come. Although, politicians were boasting of reductions in fuel and mealie-meal prices being indicative of a working government, it is clear , at least to me, that the boasting is highly misplaced. Why do I say so? First of all the reduction in fuel is a matter of course because the global price for the commodity drastically plummeted to about $ 40 per barrel. With such a reduction on the world market, we all expected the pump price to reduce. It would have been morally wrong to maintain high pump price under the circumstance. Secondly, the high price of meali-meal was the ruling Party’s own making. How? During the run up to the last presidential bye-election, ruling party increased the maize floor price through Food Reserve Agency to please farmers. The farmers were happy to make more money. Did they expect the price of mealie-meal to remain the same with an increase in maize floor price? That would have been ridiculous! With the euphoria of elections gone, government was now faced with the reality: high mealie-meal price- caught up in their own web! So the only solution for them to escape the wrath of the citizens was to release maize at lower price through the FRA. Do you call this success when a man is simply sorting out the messy he has created?
The dark cloud that hangs over the mining industry will have serious ripple effects. Do not think it will just affect the employees in the mining industry. Take for instance, the closure of Luanshya Mines Plc that has left almost 1,500 workers in the cold. The government has lost a lot of revenue it expected to collect in form of corporate tax and pay as you earn, not just from LCM but also from the contractors that were doing business with LCM. If each employee was contributing an average of one million kwacha in form of PAYE, then government has lost an anticipated monthly contribution of K1.5 billion! The banks that gave out loans to LCM employees have also lost out. There will be a reduction in bank deposits ,in due course. The buying power in Luanshya will reduce and so there will be less spending and this will affect shop owners.
The suspension of operations by Zambian Airways is another case in point. This is not just about an airline suspending its operations. Whatever revenue the government , through its agencies, was collecting from the airline and its employees will be no more.
Even though one minister is quoted to have said the suspension will not largely affect the tourism industry, I think that such a statement amounts to burying the head in the sand!
With the aforesaid, governments revenue from local resources this year will definitely be reduced. And this is where the hard times will set in! Prophet of doom? No. We must begin tightening our belts before another does it! I am wondering what will happen to PAYE and the other government levies in this year's budget. I am waiting to see what Dr Musokotwane’s budget will unveil under the circumstances. A chain reaction is surely coming!
Monday, January 19, 2009
JUST LANDED ON THE BLOG!
I have just become a blogger. I hope to post articles of interesting analysis, by God's grace. To all my Luvale friends, I say : twayenu mutange ha blongo yami, mwane!
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