We don’t have a capable leader to mobilise national wealth

“What the country earns from the mining sector alone is several times more than the $6.3bn debt restructuring mechanism,” – Nawakwi.

By Staff Reporter | DRN.

Lusaka, June 28 – FDD leader, Hon. Edith Nawakwi, says Zambia does not have a capable leader to motivate the country to mobilise its abundant resources to speedily repay debt, saying what the country earns just from mining alone is several times more than the $6.3 billion debt restructuring mechanism.

Speaking with Daily Revelation News (DRN), Nawakwi said President Hakainde Hichilema and his officials are celebrating the postponement of the debt repayment for the future generations, claiming that he is not capable of mobilising local resources for the peoples benefit, with the constant concessions he offers to the mining industry for instance.

“How old is the President? 60. Add 20 years to his age, he will be 80 years. God willing. I will be 83 years God willing. Therefore, the children born this week will be 20 years and starting a life and we are saying we are leaving this burden to them. Those of us who have borrowed we do go to the bank to say give us two years to reorganise so we are capable of paying,” Nawakwi said. “It doesn’t mean we are not paying. But if two years comes and you have done nothing to improve productivity you are still as worse off.”

Nawakwi expressed disappointment that Finance Minister, Dr. Situmbeko Musokotwane, was already saying that the debt restructuring will enable the country to get concessional loans from multilateral institutions, when the emphasis should be on improving local productivity which would pay off the debt well in advance of the due date.

“We need now to say where are our minerals, the gold, copper, diamonds, sugilite? Kagem last month auctioned $44m worth of emeralds. So we have resources. There is no need to be celebrating $6.3bn when our annual copper production is way above that amount. We have all the minerals, it’s just to refocus energies to what we have, the agriculture and mining. The 20 years when the debt is due can be reduced to four years,” Nawakwi said. “We don’t need to wait for 20 years to leave the debt on our children’s door steps.”

Also Read: Zambia is not benefitting from its mineral resources.

Nawakwi said Zambia can make a lot of money but does not have a capable leader who can motivate and mobilise the people.

“This is what we are lacking. And this issue of saying it’s the first must come to an end. Some of us went to Paris and got debt write off. So let’s continue business, putting food on the table. In our time it used to be Ministers who used to go to get deals but now it has to take the President to secure restructuring,” Nawakwi said.

“It is disappointing that on one hand you hear that France has given us $1m and on one hand Kagem is auctioning emeralds for $44m. Why can’t we get the security wings and give them concessions to mine on behalf of Zambia? Why for instance can’t we negotiate for a 49 to 51 percent share holding in mines?” Nawakwi wondered.

Also Read: Canadian looting of Zambian resources led to debt crisis.

Nawakwi said the mining sector obtaining now was very lucrative that it did not warrant the kind of concessions the government was giving out, as opposed to the time when mining investors received several concessions on account of the obtaining low metal prices at the time she served as Finance Minister in the late Frederick Chiluba’s administration.

She said it was the folly of leaders that they have no agenda to use their country’s God given resources to develop their countries.

“They don’t have a dream when they visit France that Kalikiliki can be developed into a Paris,” Nawakwi said, adding that she is interested to know the details provided in the agreement for debt restructuring rather than having to search through the internet to do so.

She further said it would be a waste of time to get the debt restructuring without creating the necessary production capacity in the country to repay the debts when the repayments are due, saying even the restructuring itself including the initial $188m was dependant upon meeting certain expectations.

“The IMF board will now have to sit and approve. It is also contingent on the treatment of loans with the actual creditors. Otherwise they will realise that even the $188m is not coming in three months. Meanwhile expectations have been raised. For three years we have not been servicing debt, we would have had hospitals stocked with medicines,” said Nawakwi.

Also Read: More corruption allegations hit Masebo as essential drugs are quarantined under very suspicious circumstances.

“We should never glorify kaloba in any form. I expect the government to direct its attention to local wealth generation and not borrowing,” Hon. Nawakwi advised.

Also Read: Zambia needs to improve tax collection and ensure the mining industry operates for the overall benefit of the economy, advises the International Growth Centre (IGC).

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