Economy

DEBT ISSUES: SOUTH AFRICA HIT AFTER ZAMBIA

South Africa won’t be able to meet its finance ministry’s debt targets and it may be undesirable for it to attempt to do so when the economy is being battered by the fallout from the coronavirus, according to an advisory panel appointed by President Cyril Ramaphosa.

In a more than 100-page document advising the government on an economic recovery program that Ramaphosa is due to unveil on Oct. 15, the President’s Economic Advisory Council said spending cuts could hold back growth and have other adverse consequences.

“We risk having nurses and doctors being unable to provide health services because of medicine stock-outs, teachers paid but with no learning materials or classrooms, police officials grounded in stations because there is not enough petrol to go out on patrol,” the panel said. “This undermines the progressive realization of socio-economic rights to health, education and basic services, and will reduce the efficiency of social spending, which is currently very poor, still further.”

9 Comments

  1. Razor

    There is no such report. Their rand is still strong at 16 to a dollar just like it was pre covid while our kwacha went from 10 to 21 in the same period.

    Reply
    • Nelson Tembo

      You hv hit the nail on the head
      Our Kwacha i has lost half its value who can invest in such an economy unless u are Prepared to throw away ur hard earned Benjamin’s

      Reply
    • Benson mwale

      Things are bad every where and we are better than others

      Reply
  2. Old Mzee

    It te Kwacha which has lost value but with a stronger Dollar an investor would reap good benefits

    Reply
  3. Banda

    This is reality and there are no politics involved. The reality is that the effects of COVID-19 on World economies is taking its toll. The issue is true for RSA. You can imagine the best economy in Central / Southern Africa crushed to a close down and all those gains from exports doomed.

    One thing is clear, Zambian economy thrives on imports and this puts too much pressure on the little forex available. Imagine how many dollars we are sensing out to bring in goods and services and we hope the the Kwacha can maintain its power. Angola is crying, Kenya is crying and these are strong economies compared to Zambia.

    Certain things we need to take politics out of realities. RSA has been hit but here anything that goes wrong is blamed on government including COVID-19. We are taking ownership that we are to blame for COVID-19 😂😂😂😂😂

    LET’S BE SERIOUS PEOPLE. Chain stores like Shoprite, Game Stores, Pick N Pay, etc are a forex drain for Zambia. You may like it or not but this is reality. We are not saying we close them but only saying we need more good companies like Trade Kings to be exporting. The GDP mathematical approaches must come in here. We can grow the economy if we export more than we import. The reverse is now the situation where we are importing more than we are exporting. There is N witchcraft here. 😜😜😜😜😜

    Reply
  4. Lethal Weapon

    Fact is that Zambia’s economy was already crumbling even before covid-19…..we have wrong clueless people on the steering wheel…

    Reply
  5. Clueless

    We have a country with immense problems which require well brained guys, but we have leaders with brains like those of a two year old

    Reply
  6. CTC

    If you believe the PF GRZ is clueless, it would be a disaster to have the current opposition in power as they are worse than than the PF!!! The current opposition is a bunch of clueless people who don’t even understand how GRZ works, they are speculators who would auction the country to the highest bidder-they are ready to lie to their supporters just to keep them excited. THEY WOULD BE AN ABSOLUTE DISASTER.

    Reply
  7. True Man

    Our Kwacha has been losing value to dollar since President Lungu started ruling this country we’ve head so many stories from vice president Inonge wina in parliament on question time. Kwacha has never recovered so the issue of Covid is out rand is still strong compared to our usuless Kwacha

    Reply

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