Eurobond money is not for eating, HH tells PF

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Hakainde Hichilema

Hakainde Hichilema

Opposition UPND leader Hakainde Hichilema has charged that Eurobond money shouldn’t be used for consumption.

Hichilema says revelation by PF this week that the Eurobond money will be used to finance the 2016 budget is absurd.

Read full statement below:

This week the PF have once again shown their lack of understanding in managing the economy, revealing how the latest Eurobond will be used to finance the 2016 budget. This is absurd, what the PF is telling us is that henceforth we will borrow to finance consumption.

As we have stated before such loans are only sustainable if and when they are invested wisely and not merely used to cover general expenditures. In fact, these funds must be invested into areas that will deliver returns if Government is going to be able to meet repayment obligations, which have now spiraled to take up 7.1 billion kwacha of the 2016 national budget. This is 2.8 billion kwacha more than our healthcare budget! PF must and should invest the Eurobond in productive sectors. A productive sector is a sector that has capacity to grow and pay taxes to Government. This is what is logical.

We say that if we can eliminate waste at the heart of Government then there really is no need to use this money to cover recurrent expenditures like the ones that are going to be for the newly created Ministries. If we can reduce the size of Government, limit the heavy Presidential travel schedule and minimise or completely do away with by elections then a great deal of money can be saved. One by elections costs us a minimum K10 million kwacha that can supply water to over 2.5 million people. So just one by-election denies 2.5 million people clean drinking water.

The savings from this wonton wasteful expenditure is the money that we in the UPND would use to then re-invest in education and healthcare and other critical social services. At this time, as a nation, we need to be investing in strategic areas that will create jobs, such as programmes that provide business start-ups with access to finance, or training of community healthcare workers. Such initiatives will both create jobs and deliver an additional return for us, through improved service delivery or economic growth. Why can’t PF reorganize Development Bank of Zambia and make it the conduit of industrial development. An amount of US$1.25 billion is a lot of money by any standards.

Regrettably this is not the first point on which the 2016 national budget has come under criticism. Analysts, both local and international, have already expressed concern that targets such as to halve the budget deficit in 2016 are unattainable and lack credibility. Barely a month has passed from the day Hon Alexander Chikwanda read the speech in parliament where he announced that his Government was targeting single digit inflation; we have hit double digits at 14.4%. In addressing the current economic challenges it is of fundamental importance that our plans have credibility or we will not be able to win back confidence.

Without confidence it will only become more and more expensive for us to borrow, and investors will more and more take their money elsewhere. Remember, Government has a responsibility to us, the citizens, to spend the money it has borrowed on our behalf wisely and with great care!


Hakainde Hichilema

UPND President


“Together we can”


9 Responses to Eurobond money is not for eating, HH tells PF

  1. the wise words of an economist/ business man, only you are too technical for the common man. using such words at a rally will not result in effective communication. please simplify your msgs

    November 7, 2015 at 5:40 pm

    • Understand that certain concepts can not be simplified without losing meaning.

      November 7, 2015 at 7:02 pm

  2. A man is got to tell it like it is. It is us people who refuse to listen. Did you know that an illiterate can interpret the most important book in the world the bible to amusement of the so called educated.

    Tell it like it is
    November 8, 2015 at 4:40 am

  3. A man is got to tell it like it is. It is us people who refuse to listen. Did you know that an illiterate can interpret the most important book in the world the bible to amusement of the so called educated.

    November 8, 2015 at 4:43 am

  4. Ba Hh that is just politicking if you were wise you would be in State House today thats why Ifintu ni Lungu chabe

    November 8, 2015 at 11:57 am

  5. Tell it like it is & lona,
    Though I know that you are the same lona,
    Let hh sing it over and over again or speak in Tonga, Bemba, Chinyanja, Luvale, Kaonde or Lamba.
    Or he should simply join the government as a State House Economics Assistant free of charge …no you know that “hh shall never be the President of Zambia until 2032.”
    However, he should stop crying that loud as if the economy is his own alone… He should also know that “There are several ways of skinning a cut.” not only the Capitalistic way….Look at China…Russia, Nigeria and many other progressive economies…
    hh only knows one alternative…. the dictator…. You wait for 2032..

    The black woman not pink
    November 8, 2015 at 12:04 pm

  6. Once again wise words from my President.
    Thank you very much HH. Here at Kopala in Forward Moving chapwa.

    Kopala Swag
    November 9, 2015 at 6:04 am

  7. Ati the man just criticizes without giving alternatives, what then do you call the statement from HH? well there’s is free advice which already some tribalists who have so far posted their comments can’t see. Yes it is his economy just like it is yours that’s why he has decided to school pf on some of the issues bale faula. Ati if he was wise he would be in State House, that is simplistic thinking, you mean to tell me that KDK, FTJ, LPM, RBB, MCS and ECL ascended to office on account of being wise, my friend be real there are alot of people that never made it to state who were wise. Gen Miyanda, Akashambatwa, Arthur Wina, Kapwepwe, Magande, Mainza Chona, Mwanakatwe all these are just but a few examples. The day you will stop falling for lies from pf the day you will stop looking at tribe but capacity HH and many others will make it State House. In short it’s your tribalism preventing HH not capacity or anything else. Its also very foolish of one to think that HH needs to join pf to contribute to the nation, for your own information HH just like many other leaders and citizens writes to state house advising on many issues. its up government to use or misuse the advice, they can even throw such advice in the trash can. People who support pf but are not in government also write and sometimes see the president in person so they offer advice, they don’t have to join government to do this.
    Lastly you call HH a dictator, well I don’t know which portfolio in Government HH has ever held to warrant giving him that tug. Even from his business life it would be very foolish to say that based on what could be happening there because even you for your ka business to flourish you have to be strict otherwise you be sharing the profits equally with your staff but when it comes to servicing machinery you use in your production of your merchandise it will be you and you alone to look for money to do the servicing. So really I don’t know what you are basing your dictatorial nonsense on but whatever the case as far as I am concerned you are only being malicious and tribal.
    What this country needs is not a good leader but good laws and institutions, that is why other countries are doing well. In the absence of the above even a so called good and God fearing leader can be turned into a monster. But I know even with this somebody will still want to be stubborn and believe otherwise, well as for me from Muchinga it’s HH and UPND period.

    November 9, 2015 at 8:58 am

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