CANCEL IMF DEAL, DEMANDS ANTONIO MWANZA

SOCIALIST Party (SP) Deputy Secretary General Antonio Mwanza has called for the cancellation of the International Monetary Fund (IMF) deal.

Speaking in an interview with The Scoop, Mr. Mwanza said the IMF deal must be revoked because the conditionality they have given the country could not grow the economy.

He added that the IMF conditionality could not create jobs and consequently reduce the cost of living and according to him, the IMF deal did not allow the Government to subsidise fuel directly or indirectly by removing Value Added Tax (VAT) and Excise Duty.

“This IMF deal is running up to 2025, meaning that the cost of fuel up to 2025 will continue to increase.  VAT and Excise Duty will continue to be part and parcel of fuel prices up to 2025. Therefore, you don’t see the prices of fuel coming down under the current conditionality. What does that mean? it simply means the cost of production will continue going up, the cost of food will continue going up, and the cost of transport will continue going up,” Mr. Mwanza said.

He said one of the conditions the Government was given by the IMF was to restructure, review and amend the Bank of Zambia Act and that the Bank of Zambia Act has been amended and that following the amendment of the Bank of Zambia Act 2022, Central Bank Governor Denny Kalyalya had been given overriding authority to make monetary decisions even those that were against the benefits of the people of Zambia.

“This includes, increasing the Monetary Rate and increasing the Statutory Reserve Rate continuously like he has been doing every month. What does that mean? It means borrowing money has become very expensive because the interest rate is too high. It also means Banks have little money to give out because the Statutory Reserve Rate has been raised.

“Banks don’t have money to give and even if they were to give, they will be asking for a lot of collateral which a lot of Zambians don’t have. Even if you produce the collateral and you get the money, the money is too expensive. The interest rate is too high meaning that even if you invest that money in a business, you will still not make a profit,” he said.

He also noted that the austerity measures given to the Government by the IMF have had a toll on the livelihood of the people.

“The IMF has given the Zambian Government austerity measures as part of the conditions. So, the Government is spending less on education that is why your children and my children are sitting on the floor, there are no desks, there are no books and there is no chalk,” he claimed.

He said agriculture, which should be a cornerstone of job creation, had gone down and only contributed 4.2% of the country’s Gross Domestic Product (GDP) as per latest statistics of 2022/23, meaning the sector was not producing jobs and money. “If we were taxing mines appropriately, Zambia was going to be raising a minimum of US$ 1.2 billion every year. That is money that can be used to subsidise electricity, subsidise fuel, build roads, build bridges and build manufacturing and processing industries.