Economy

Habazoka Urges Patriotic Discourse Around Zambia

Economist Lubinda Habazoka has stuck to his positivist stance on national matters decrying the damage the negative publicity has done to Zambia.

Habazoka says his positivist outlook is aimed at helping build confidence in the Zambian economy.

The Economic Association of Zambia (EAZ) president has been projecting a positive outlook for the Zambian economy amidst turbulent times.

 

FULL WRITE UP:

Dr Lubinda Haabazoka writes

An educated person especially that one involved in advocacy should look at issues sober and objective. One’s opinion should be formulated and communicated based on one’s convictions without expecting praise or fearing a backlash. That has been my position for a long time. Unfortunately, some of the positions I take are aimed at instilling confidence in the economy to control damage made by speculation. A country that has bonds on the international capital markets should be very careful in what it says or debates.

Investors use among other factors the performance of sovereign bonds as a barometer to measure economic stability before investing. Unfortunately most traders in bonds never use fundamental analysis but opt to use technical analysis and noise to make decisions whether to engage a bond or not. Noise coming from Zambia unfortunately has been so negative that we have pushed our bond to the bear. The results can be seen in the performance of the Zambian kwacha. Our colleagues also tweet about cancelled Aid because of alleged corruption providing the risk averse investor negative adrenaline causing them to convert kwacha assets into dollar assets. Next week am going to sell all my forex to the banks, to help stabilize the kwacha.

That is what a patriotic Zambian should do because my effort alone will be very insignificant! Some economists unfortunately still think that our country is operating the same way it used to before the Eurobond issue. Zambia has unfortunately changed and its economy can now be killed by noise and speculation. That is why am very cautious on what I say about our country especially with my new position than 6 months ago. My personal position can easily be taken as EAZ position. Noise and other foreign interventions sent the Turkish currency almost into oblivion!!!! Citizens went forward to help.

Qatar injected in $15bn to revive the currency. We as a country unfortunately are an easy target to be used as an example in a war between east and west. When West strikes, they use our inefficiencies like corruption as a basis of their disengagement. They know we have that weakness but they only react at a time that suits them. Kapoko saga started before 2010 at a time when we went to bed with the east. I hear of senators wanting to stop countries from being helped by the IMF if those are dating China. $60bn of heavy Chinese influence is headed our way so a country like Zambia with citizens that have long hands is that perfect bait to use in such wars.

As Zambians, we need a patriotic stance in order to foster economic development.

When need to:

– 🛑 stop CORRUPTION at all levels

-Put country before political interests

– Put Zambia unity before tribe

-Gain a sence of patriotism.

Then coming to back to local solutions, let us not neglect our mining companies. I give all of you a task. Go and calculate the benefits of mining to Zambia!!!

The Zambian government is spending the following annually:

-$700m in VAT refunds to the mines.

– $240m in electricity subsidies to the mines

-$60m in fuel subsidies to the mines

Total $1bn!!!!! Yes $1bn that if we withheld, we could repay all our Eurobonds without refinancing!!!!!

Now can you ask the mines how much platinum and other rare minerals they mined last year? Where are the proceeds? Ndola refinery under Zccm was responsible for extracting such!!!!

The mines last year produced over 800 thousand tonnes of copper. The average price of copper last year was $6000. In total, they received not less than $4.8bn. Now these are official figures. Now how strong was our currency going to be if we kept even $2bn of that here?

Chile the largest producer of copper leant management of their mining companies from Zambia. Their company Codelco whose CEO I met sometime back was formed under ZCCM model! Foreign investors in Chile were given greenfields and government there cannot be cheated because they also own mines. Chile today has a copper stabilization fund that the country uses during downward economic slumps. Chile today is developing very fast and after copying from us do not know any inflation problems.

We need to act as a country. For those saying we can move in to control the negative trends in the mines, what is your alternative proposal????

 

12 Comments

  1. clamma cykjack

    indeed well said but first look at our leadership,if someone can steal & bury donor funds,what of a goverment property?zambia ‘s economy wil never perform like the way it performed during mwanawasa because all leaders have no passion to save people who voted for them but save their pockets.so eat with them mwana,do’nt rebuke us.

  2. Nimabvute chabe

    You alone can not change anything but as entire board fish out all corrupt charps if you can in a corrupt government,selfish leaders,and undetermined leaders who hate there country.shame

  3. kedrick siame

    Us a zambian how can you give maines your own land their dig cop and so many minerals you and i we are not benefiting to those minerals so zambian people can you tell me that we can’t run those maines mwebantu sure, and how Zambia government allow this for so long time surely is it our land or chanise land and twalayamba ukulatuponona nefimuti so that you start arest us and remain with chanise people it’s what the government want us to act.

  4. Concerned citizen

    Wacha wakula yo,watapa hande, watina hande hakuna sa bilaela,waola masheleñi,wainunakela hakuna sabilaela.Yena haboni kuli Naha ya totobela kubile feela inga kula kipeto kulu kile kuyena.

  5. Zebron Chivunga

    This is an honest submission by a well meaning Zambian. I totally agree with him all that he has articulated here.
    The bad attitude among Zambian politicians coupled with a very ignorant and uninterested tribally aligned citizenry is serious recipe for total collapse and possible loss of sovereignty.
    Doctor Habazoka’s free advise must be taken very seriously.

  6. Edwin Likando

    Well articulated my brother,how I wish we as Zambians could develop a sense of belonging to our country.there are a lot of factors that are contributing to our nation not performing well and some of them are corruption, lack of sound leaders who tend not represent the poor Zambians once they are put into office by the people, lack of transparent and clean tendering processes when procuring materials,awards are given to contractors on criterias best known to themselves..next thing u see are Chinese everywhere. I strongly feel that us as Zambians can contribute massively towards the development of the country when given an opportunity to work. one Zambian one nation.

  7. One zed

    A patriotic Zambian must be responsible in his attitude and on how best to protect the integrity of his country,it’s a shame that we destroy our own country through careless talk just to gain political mileage.lets all be responsible and help develop this country for our children and great grand children.Remember one day it will be you in leadership and how will you rule when you personally damaged the image of. Your country,one Zambia one nation no tribalism we are one.

  8. Truth man

    A good write up bo Lubinda , but you have left one other economic player player in your critique and that is the Emerald mining industry. Many Zambians don’t seem to know that the Emeralds produced in this country earn billions of dollars to the owners every year. However the control process by Government leaves much to be desired. Our Emeralds are considered to be the best in the world and lest people don’t know,an Emerald is next to a diamond in value on the international market! Foreigners of East African origin are the beneficiaries in this high valued stone today in this country. One needs to move around Kitwe and see for himself about people who don’t have offices,but they drive expensive cars and houses.They register everything in the names of their Zambian wives or children and they don’t keep bank accounts for fear of being noted!They deal in Dollar only when transacting in our emerald! But the government is quiet because some of the top men receive slush funds from these tycoons , what a shame.If you go in other countries like Botswana if you talk about diamonds you will be questioned but here in Zambia even foreigners own emerald mines! So , the corruption in this country is the culprit as mentioned.

  9. Brighton Mulonga

    Well said and i refuse to dis-parade my country without offering solutions. Let us not just talk but get to action in helping our country to get out of the current situation. Yes we can do it. Lubinda has just mentioned a few areas i think we can look at other sectors of the economy. I refuse to be part of perpetual complainant, armchair critic without offering solution

  10. Kwahae

    Mr. Habazoka,
    It is not only me who is proud of you but many Zambians.
    We need more of you in this country to quench the fire that is being lit every day by those who have nothing positive to say about this country.

  11. Tellall

    Let’s promote smes….it’s from these that big companies are built….really we need to start from somewhere….there’s an increase of packaged commodities e.g rice, beans, various meals….but that’s not the value addition we should look at only….there’s more we can do with these raw materials….Let’s think Zambia and let the banks provide the cash….not ama interest rates aya kubuka….the market is there…with all these mushrooming lousy malls everywhere…..but at least that’s ready market for a start….why should people be proud of getting fading clothes from these lousy shops at malls when we have tailors littered at every corner…..we need to awaken the sleeping giant in us Zedians….

  12. Tellall

    It can be done!let’s put the right people in these political offices…..otherwise technocrats are there….just that they have been duped and reduced to cadres…..

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