RB castigates opposition parties criticising the World Bank’s reclassification of Zambia
TIME PUBLISHED - Thursday, July 21, 2011, 4:47 am
President Banda has castigated opposition parties and some individuals criticising the World Bank’s reclassification of Zambia as a lower middle-income country. Mr Banda said he is disappointed with people who have continued to criticise the World Bank decision which shows that Zambia’s economy is growing.
“We have received the news from the World Bank and the country’s B+ rating from international rating organisations Standard and Poors and Fitch with honour and joy but it is surprising that my colleagues in the opposition have continued to criticise such recognitions,” President Banda said.
“They are saying there is still poverty in the country but there is no country in the world which is free of poverty. It is through these ratings that our country will manage to eradicate poverty,” he said.
President Banda said this when he officiated at the ground-breaking ceremony of the Kafue Gorge Lower Hydro-electric project in Kafue yesterday.
He said the continued positive ratings mean that Zambia’s economy is growing at a fast rate and benefits will trickle down to citizens and improve their lives.
Mr Banda said Zambia can now attract more investors to the country’s critical sectors and investors will help Zambia to develop economically, socially and politically.
“These ratings do not mean that our people will wake up tomorrow and start driving their own vehicles, live a posh life or that the country will suddenly eradicate poverty. But in the long run, people will live more comfortable lives. So, I wonder what my colleagues criticise. One day we will get there,” President Banda assured.
He said the ratings are not political because they were conducted by credible international institutions, based on the country’s economic achievements.
“These ratings do not mean that our people will wake up tomorrow and start driving their own vehicles, live a posh life or that the country will suddenly eradicate poverty. But in the long run, people will live more comfortable lives. So, I wonder what my colleagues criticise. One day we will get there,” President Banda assured.
Mr Banda said he is happy that Zambia has been reclassified as a lower middle-income country and assigned positive ratings under his administration.
Meanwhile, Mr Banda has announced that over 200 housing units in Camp Three of Namalundu Gorge residential area in Kafue will be sold to sitting tenants.
And President Banda is disappointed with people who are criticising the World Bank’s ranking of Zambia as a lower middle-income country.
Mr Banda made the announcement in Kafue yesterday when he officiated at the ground-breaking ceremony of Kafue Gorge Lower Hydro-electric Project.
“Let me take this opportunity to announce that over 200 houses in Camp Three of Namalundu will be given to sitting tenants to benefit our people,” he said.
The institutional houses are occupied by Zambia Police Service officers, health workers and some employees of Zesco. Mr Banda said Zesco under the Kafue Gorge Lower Hydro-electric Project will build houses for its employees working under the project.
He said the project will also construct a classroom block at Chibola Basic School in Namalundu.
“Zesco will build new houses for its workers who will be employed under this new project. In the same vein, this project will construct a classroom block at Chibola Basic School which you had requested me to build for you,” Mr Banda told the crowd which had gathered to witness the ground-breaking ceremony.
Before making the announcement at the project site, Mr Banda toured the Namalundu houses and some schools.
He also held private talks with Zesco management and some members of the board of directors.
Recently, the President instructed Maamba Collieries to offer over 800 houses to former sitting tenants as part of the home empowerment scheme
Labels: KAFUE LOWER GORGE HYDRO POWER STATION, NEOLIBERALISM, POVERTY, RUPIAH BANDA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
Resources to implement SNDP inadequate, says Musokotwane
By By Mutale Kapekele
Sun 17 Apr. 2011, 03:59 CAT
ZAMBIA’s resources under the World Bank’s International Development Association window are not adequate to support the level of investment needed to implement the Sixth National Development Plan, finance minister Situmbeko Musokotwane said in Washington DC on Thursday.According to a press statement made available by Zambian embassy in Washington DC first secretary for press Ben Kangwa, Dr Musokotwane said this when he met with the World Bank managing director Ngozi Okonjo Iweala at her office.
Dr Musokotwane said with Zambia attaining the lower middle income status country, it was the government’s view that the World Bank should grant it access to the International Bank for Reconstruction and Development (IBRD) Financing by reclassifying Zambia as anIDA/IBRD blend country.
This, he said, would assist Zambia access the level of resources required to support the SNDP.
Dr Musokotwane also urged World Bank to streamline the approval of projects processes.
He said Zambia had experienced extended delays in the country’s projects approvals, giving as an example the Irrigation Development and Support Project which took many years to be approved.
The World Bank board of directors approved a US $115 million credit for the Irrigation Development and Support Project (IDSP) on April 7, 2011 which will enable Zambia to overhaul its irrigation sub-sector.
In the SNDP, one of the goals is to increase and diversify agriculture production and productivity with a view to raising its contribution to the country’s Gross Domestic Product (GDP) by 2015.
The project, which will be developed in proposed selected sites, is expected to be implemented over seven years, up to June 2018.
Dr Musokotwane said the projects in the SNDP required huge amounts of resources and that the government expected the World Bank to play a key role.
On account of increased mining tax collections, he said the fiscal position was generally favourable.
[Not increased collection of mining taxes, increased collection of PAYE - workers wages. - MrK]
On Zambia’s economic performance, Dr Musokotwane told the World Bank that in 2011 the country expected positive performance, with growth estimated to 6.8 per cent and to average 6-7 per cent per annum over the next five years.
He said the recent two ratings of B+ that Zambia was assigned by Fitch and Standard and Poor in March 2011 would enable the country to tap into the international markets to raise financing for infrastructure development and to access the international market in order to issue a bond within the course of this year.
In response, Okonjo-Iweala said she was optimistic that Zambia would continue sustaining strong economic growth recorded in the past five years coupled with the high global rating on account of consistent prudent economic management among various factors.
She said the fact that Zambia was among the top ten economic performers in Africa gave hope to the Bank that a lot has been done.
Okonjo-Iweala advised that despite all the positives, Zambia still had to work on infrastructure development.
Labels: SITUMBEKO MUSOKOTWANE, SIXTH NATIONAL DEVELOPMENT PLAN, World Bank
Read more...
SNDP will require increase in external borrowing - IMF
By Mutale Kapekele
Fri 11 Feb. 2011, 04:00 CAT
THE international Monetary Fund says the implementation of the Sixth National Development Plan will require an increase in external borrowing.
Responding to a press query on the SNDP, IMF resident representative Perry Perone advised Zambia to negotiate the best loan terms when contracting external debt for the implementation of the SNDP.
“Our preliminary view is that the SNDP sets ambitious macroeconomic targets to increase revenue collection, control recurrent expenditures, and increase public expenditures on much needed development projects,” Perone stated.
“Even though the fiscal space for development expenditures would be augmented under the proposed revenue and expenditure projections, the magnitude of the proposed development spending will require an increase in external borrowing, some of which will be on non-concessional terms. In this regard, the IMF has encouraged the Zambian government to negotiate the best possible terms for these loans and to ensure that the projects that will be financed are economically viable so that they will generate the revenues to repay the loans.”
He stated that the IMF also supported the SNDP's goal to foster broad-based economic growth stating that this will help to generate jobs and reduce poverty.
Perone stated that the macroeconomic achievements under the Fifth National Development Plan were good, given the difficult external environment during the implementation period (2005-2010).
“During the last five years, Zambia enjoyed sustained high real economic growth, inflation (which hurts the poor more than those that are well-off) was lowered to single digits, and domestic and external government debt was kept to manageable levels,” stated Perone.
“In navigating the recent world financial and economic crisis, the government pursued prudent macroeconomic policies and real economic growth in Zambia turned out to be higher than that of most other countries in the region.”
Labels: DEBT, IMF, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
SNDP should translate into tangible results - businessman
By Mwila Chansa
Sun 06 Feb. 2011, 04:00 CAT
THE government should resist the temptation of doing things outside the Sixth National Development Plan (SNDP) just to win votes, according to a Kitwe businessman.In an interview, Eddie Kapungulya observed that this being an election year, the government may be tempted to do things outside the plan just to gain popularity.
He observed that people at the grassroots would only understand and appreciate development plans if they saw tangible results.
“The man on the ground would want to see tangible results and that can only happen when they see actual development. When you talk about development plans and the economy, we are talking about macro-economic indicators,” Kapungulya said.
“If for example there were no jobs last year, people should be able to see new jobs this year and that is when they will appreciate these plans.”
He said the projected reduction in extreme poverty should be translated into people’s improved livelihood as opposed to just being on paper.
And Kapungulya hoped the SNDP had seriously addressed the diversification of the economy from copper mining to other sectors.
He said with the rising copper prices, people may become complacent and forget about diversification but they needed to be reminded that copper prices could fluctuate and throw all their plans into shambles.
Kapungulya called for follow up mechanisms to monitor and evaluate the implementation of the SNDP.
He said the Ministry of Finance and National Planning and the Bank of Zambia should regularly monitor key performance indicators such as inflation, the exchange rate and the Gross Domestic Product (GDP) to ensure that the plan was adhered to.
Kapungulya also said the medium term expenditure framework should be critically analysed.
In launching the K132 trillion SNDP on Friday, President Rupiah Banda admitted that the implementation of the Fifth National Development Plan was negatively affected by poor coordination and weak linkages within government departments.
Labels: EDDIE KAPUNGULYA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
Rupiah admits FNDP’s flawed implementation
By Mutale Kapekele and Joseph Mwenda
Sat 05 Feb. 2011, 04:01 CAT
PRESIDENT Rupiah Banda has admitted that implementation of the Fifth National Development Plan was negatively affected by poor coordination and weak linkages within government departments.
The President said this at the launch of the K132 trillion rich Sixth National Development Plan (SNDP), which will run from 2011 to 2015.
President Banda said in preparing the SNDP, the government took note of the lessons learnt from the previous development plans and experience which indicated that many programs were only partially funded and could not, therefore, be completed due to limited resources.
“It was noted that poor coordination and weak linkages among various government units and other stakeholders implementing similar programmes adversely affected performance of the plan,” President Banda said.
“This is notwithstanding, positive achievements that were recorded during the period. Gross Domestic Product (GDP) grew by about six percent on average during the plan period amid the unprecedented difficulties in the global economy as a result of the global financial and economic crisis. However, this growth was below the seven percent in the FNDP. Overall poverty fell from 73 percent to 64 percent though rural poverty remained high.”
President Banda said both domestic and foreign private investment grew and Zambia’s competitiveness continued to improve during the implementation period of the FNDP.
He said through the SNDP, the government would continue to focus on investing in infrastructure, with a bias towards energy, road, railway and air transportation, human resource development in areas of education skills, health, water and sanitation.
“During the period, the proportion of people living in extreme poverty is expected to decline from 37 per cent in 2006 to about 29 per cent in 2015 while rural poverty is expected to decline from 77 per cent in 2006 to 50 per cent in 2015,” he said.
“The SNDP will also continue to address the structural bottlenecks in the economy in order to accelerate socio-economic transformation for prosperity. Solutions in the plan aim at creating employment, raising average per capita income levels and further improving Zambia’s competitiveness.”
President Banda also said the private sector would remain the engine of growth and development.
“In that regard, I emphasise that the private sector remains a key partner in Zambia’s development and, therefore, needs to actively participate in the implementation of the plan,” he said.
“The private sector should lead the growth and government will provide the atmosphere for you to do this.”
He said the projected resource envelope for the SNDP was K132 trillion, which would be met by K103 trillion of domestic resources, and K29 trillion, or 22 per cent, from external assistance and external borrowing.
“However, there is need for further strengthening of domestic revenue collections and public expenditure,” President Banda said.
“I, therefore, urge the minister of to give serious attention to implementation of revenue measures as well as measures aimed at strengthening public expenditure.”
Earlier, finance minister Dr Situmbeko Musokotwane said the FNDP was successful owing to the economic growth of an average of six percent and successes in the mining sector.
“The performance of the FNDP was very good,” Dr Musokotwane said.
“During that period, the economy turned around with an average growth rate of six per cent. During that same period, more than 700,000 tonnes of copper was produced per annum and indications show that we could hit two million per annum in the next five to six years. This is 10 times more than what was produced in 2010.”
Dr Situmbeko also said the FNDP led to successes in all sectors and raised employment levels.
Labels: FNDP, RUPIAH BANDA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
President Banda launches national development plan
Friday, February 4, 2011, 14:46
Government has projected to reduce extreme poverty levels from 37 per cent to 29 per cent by the year 2015. Rural poverty is also set to reduce from 77 per cent to 50 per cent during the period under review.
The projections have been set in the Sixth National Development Plan launched by President Rrupiah Banda in LUSAKA on Friday.
In his address during the launch, President Banda said the SNDP will also continue to address bottlenecks in the economy, in a bid to accelerate social economic transformation.
President Banda said the plan also seeks to create jobs, wealth and income levels in the country.
And One hundred and 32 trillion Kwacha will be spent to implement the Sixth National Development plan in the next five years.
President Banda says one hundred and three trillion Kwacha will be raised from domestic resources, while 29 trillion Kwacha representing 22 percent of the total cost, will be sourced from co-operating partners and external borrowing.
President Banda has urged the Ministry of Finance to strengthen domestic revenue collection and public expenditure so that the SNDP can be effectively implemented.
The President also noted the need to strength linkages among implementing agencies, if the plan is to be effectively executed.
Mr. BANDA has also challenged the private sector to play a key role in growing the economy, as stipulated in the plan.
He has called on co-operating partners to provide their usual support towards the plan.
And Finance Minister, Situmbeko Musokotwane says Government aspires to grow the economy in the next five years of the plan, by an average seven percent.
Dr Musokotwane has however urged policy makers and Government agencies to understand the plan for effective implementation.
He has also announced that Government will embark on a country wide campaign aimed at sharing and helping citizens understand the plan.
And Secretary to the Treasury, Likolo Ndalamei thanked members of the public who contributed in the drafting of the SNDP.
And Bank of Zambia Governor Caleb Fundanga says the central Bank will ensure the financial frame work is in the right place during the implementation of the Sixth National Development Plan.
Dr. Fundanga says the Plan is good for the country as it will be a good for the country’s development agenda.
Dr. Fundanga says the Central Bank will also ensure there is low inflation during the implementation of the plan.
And UN Country coordinator Kanni Wignaraja says UN agencies in Zambia will fully take part in the implementation of the Plan.
Ms Wignaraja says the UN will specifically involve itself in the Education and Health Sectors.
[ZNBC]
Labels: RUPIAH BANDA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
Rupiah’s speech to Parliament lacked inspiration - CSPR
By George Zulu in Choma
Mon 27 Sep. 2010, 04:00 CAT
CIVIL Society for Poverty Reduction (CSPR) vice chairperson Partner Siabutuba has said President Rupiah Banda’s speech to Parliament lacks inspiration to Zambians regarding poverty reduction.
In an interview, Siabutuba said President Banda’s speech was not good enough to meet the expectations of Zambians because he failed to address critical issues.
“As civil society, we expected the President to deal with issues on how Zambia is going to move forward in reducing poverty, especially that we are now concluding on the Fifth National Development Plan and embarking on the Sixth National Development Plan,” Siabutuba said.
“These are the issues we expected the President to elaborate very clearly. How we are prepared as a country in terms of financial resources, especially that he has asked donors to pack their bags and go. We were eagerly waiting for his comments on donors because you know that a few weeks ago, he said that donors should pack their bags and go, and yet in Parliament he appeals for donor support to be able to have Zambia realise its vision.
“His statement doesn’t tie well with the Secretary to the Treasury’s position that Zambia will require about K75 trillion for the 2011-2012 national budgets and the Medium Term Expenditure Framework.”
Siabutuba said the MMD and President Banda needed to realise that the country could not attain the desired level of development without the support of cooperating partners whom the President recently asked to pack their bags and leave.
He said the civil society throughout the nation expected President Banda to apologise and retract his scathing remarks on donors who were concerned about the high levels of abuse of public funds by the government.
“We expected President Banda to say sorry for urging cooperating partners to pack their bags and go. It is a big contradiction for the President to be able to say donors should support us and at the same time he says they should pack their bags and go. These technocrats are projecting K75 trillion. Where is that kind of money going to come from if the President and his government are frustrating donors?” asked Siabutuba.
“We expected the President this time around to have withdrawn that statement he made, nothing else apart from withdrawing because we need donors for national development. I can assure you that even the Sixth National Development Plan will be a pipedream. We shall not realise, we have not achieved much in the Fifth National Development Plan. Therefore, it is now or never that we should actually ask those donors who are not here to pack their bags and come to Zambia; not the other way round.”
Recently, President Banda asked donors to pack their bags and leave if they were not happy instead of poking their noses into the country’s business. However, President Banda last week said the country could not attain its vision of being a middle income country by 2030 without the support of cooperating partners.
Labels: CSPR, PARTNER SIABUTUBA, RUPIAH BANDA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
DPI calls for strategies to implement sixth national development plan
By Namatama Mundia
Mon 18 Jan. 2010, 04:00 CAT
DEVELOPMENT Partnership International-Zambia (DPI) has said there is need to formulate strategies for implementing the sixth national development plan (SNDP) to empower Zambians, especially the youths.
In a press statement yesterday, DPI-Zambia media and strategy coordinator Richard Msauka called on the government to ensure that the fundamental necessity of the plan should have in place strategies which could identify the people who were target beneficiaries during the design process.
“It is important to note that every society that fails to invest properly in young people shatters the future of such society,” Musauka stated. “In the same way, we wish to state that politics of poverty and insults should remain in the past so that energies can be put together in the nation for identifying solutions to the poverty challenges the common people face in the country.”
He noted that there was need for Zambians not to take advantage of the peace and harmony which the country enjoys.
“What we are saying is that there is need to ensure that sound strategies are put in place upon which development efforts which ensure equitable distribution of the national cake is made reality for all,” Musauka stated. “Why is it that Zambians should be living in dehumanising conditions when they sit on natural wealth which is located underground yet it is not clear what the government projects to generate from the mining sector?”
He also called for the reintroduction of the windfall tax on mining companies owing to the rise in copper prices on the international market.
“Because of the continued widespread poverty and underdevelopment in the country, we are urging the government to involve all stakeholders in the country starting with the civil society, the church, media and young people and women to take a rough audit of previous national development plans,” Musauka said.
He stated that identified areas of weaknesses and strengths could be used as benchmarks for successful design and implementation of the sixth national development plan and designing of strategies for its implementation.
“This can translate in the betterment of the general livelihoods of the people and national development. But looking at the way general development efforts have been handled in the past few years, it is agreeable that the poverty situation in Zambia is man-made due to politics of poverty,” he stated.
Musauka further appealed to Zambians to turn out in large numbers to obtain national registration cards in order for them to register as voters and take part in electing selfless leaders during next year’s general elections.
“There is need for scrutiny of people who aspire for leadership in 2011 because scrutiny has been one of the missing factors behind the choices voters make to elect their leaders,” stated Musauka.
Labels: DPI, RICHARD MSAUKA, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
Resource allocation should reflect govt priorities, says Ndalamei
Written by Florence Bupe
Tuesday, January 13, 2009 9:45:27 AM
SECRETARY to the Treasury Likolo Ndalamei has said the allocation Zambia’s resources in the medium to long term should reflect government priorities and augment economic diversification efforts.
Officiating at the second Poverty Reduction Budget Support (PRBS) review workshop at Pamodzi Hotel yesterday, Dr Ndalamei said in view of the global economic crisis, there was need for the government and cooperating partners to double their efforts in ensuring that economic strengths were redefined.
“I urge our cooperating partners to re-double their efforts in augmenting Zambia’s resources by enhancing development assistance in light of the negative impact of the global economic crisis on the Zambian economy,” Dr Ndalamei said.
“In the medium to long term, government is committed to diversifying the economy from copper mining to other sectors of the economy… the allocation of resources should therefore, reflect the government priorities.”
He said through the PRBS process, the government would be able to effectively enhance transparency and ownership.
“Through the PRBS process, the government is able to use its own systems of accounting and resource allocation through direct budget support. In addition to enhancing ownership, the process ensures transparency and accountability in the utilisation of tax payer resources,” he said.
Dr Ndalamei disclosed that the Ministry of Finance had already commenced preparations for the Sixth National Development Plan that would cover the period 2011 to 2015, and called on cooperating partners and other stakeholders to support the process.
Labels: LIKOLO NDALAMEI, PRBS, SIXTH NATIONAL DEVELOPMENT PLAN
Read more...
