The negative noise is killing Zambian economy – Economist Haabazoka

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Lubinda Haabazoka

Economist Dr Lubinda Haabazoka has charged that the the negative loud talk is killing the economy in Zambia.

Dr Haabazoka who is also the president of Economic Association of Zambia (EAZ) says citizens need to avoid the negative talk and exhibit patriotism to serve the Zambian economy.

Following reports of suspension of Aid by UK and other European countries, the Zambian Kwacha “collapsed”. It depreciated to K11 against the dollar  just on the same day the UK Envoy tweeted confirming the suspension of aid.

But Haabazoka has announced that he will sell his forex this week as a way to show patriotism and has called on other Zambians to do the same.

Below is his full writeup:

An educated person especially that one involved in advocacy should look at issues sober and objective. One’s opinion should be formulated and communicated based on one’s convictions without expecting praise or fearing a backlash. That has been my position for a long time. Unfortunately, some of the positions I take are aimed at instilling confidence in the economy to control damage made by speculation. A country that has bonds on the international capital markets should be very careful in what it says or debates. Investors use among other factors the performance of sovereign bonds as a barometer to measure economic stability before investing. Unfortunately most traders in bonds never use fundamental analysis but opt to use technical analysis and noise to make decisions whether to engage a bond or not. Noise coming from Zambia unfortunately has been so negative that we have pushed our bond to the bear. The results can be seen in the performance of the Zambian kwacha. Our colleagues also tweet about cancelled Aid because of alleged corruption providing the risk averse investor negative adrenaline causing them to convert kwacha assets into dollar assets. Next week am going to sell all my forex to the banks, to help stabilize the kwacha. That is what a patriotic Zambian should do because my effort alone will be very insignificant! Some economists unfortunately still think that our country is operating the same way it used to before the Eurobond issue. Zambia has unfortunately changed and its economy can now be killed by noise and speculation. That is why am very cautious on what I say about our country especially with my new position than 6 months ago. My personal position can easily be taken as EAZ position. Noise and other foreign interventions sent the Turkish currency almost into oblivion!!!! Citizens went forward to help. Qatar injected in $15bn to revive the currency. We as a country unfortunately are an easy target to be used as an example in a war between east and west. When West strikes, they use our inefficiencies like corruption as a basis of their disengagement. They know we have that weakness but they only react at a time that suits them. Kapoko saga started before 2010 at a time when we went to bed with the east. I hear of senators wanting to stop countries from being helped by the IMF if those are dating China. $60bn of heavy Chinese influence is headed our way so a country like Zambia with citizens that have long hands is that perfect bait to use in such wars.
As Zambians, we need a patriotic stance in order to foster economic development.
When need to:
– 🛑 stop CORRUPTION at all levels
-Put country before political interests
– Put Zambia unity before tribe
-Gain a sence of patriotism.
Then coming to back to local solutions, let us not neglect our mining companies. I give all of you a task. Go and calculate the benefits of mining to Zambia!!!
The Zambian government is spending the following annually:
-$700m in VAT refunds to the mines.
– $240m in electricity subsidies to the mines
-$60m in fuel subsidies to the mines
Total $1bn!!!!! Yes $1bn that if we withheld, we could repay all our Eurobonds without refinancing!!!!!
Now can you ask the mines how much platinum and other rare minerals they mined last year? Where are the proceeds? Ndola refinery under Zccm was responsible for extracting such!!!!
The mines last year produced over 800 thousand tonnes of copper. The average price of copper last year was $6000. In total, they received not less than $4.8bn. Now these are official figures. Now how strong was our currency going to be if we kept even $2bn of that here?
Chile the largest producer of copper leant management of their mining companies from Zambia. Their company Codelco whose CEO I met sometime back was formed under ZCCM model! Foreign investors in Chile were given greenfields and government there cannot be cheated because they also own mines. Chile today has a copper stabilization fund that the country uses during downward economic slumps. Chile today is developing very fast and after copying from us do not know any inflation problems.
We need to act as a country. For those saying we can move in to control the negative trends in the mines, what is your alternative proposal????


11 Responses to The negative noise is killing Zambian economy – Economist Haabazoka

  1. Dr. Haabazoka, you have some valid arguments but you are missing the point: when $4 million goes missing from social cash transfer and more than double that at the ministry of education, it is not corruption noise anymore! That is a serious problem with corruption that cannot be solved by your patriotic selling of foreign assets. You should be using your position to tell the powers that be how damaging their corruption (real and perceived) is to the economy.

    September 23, 2018 at 11:46 am

    • @Mpundu
      I agree entirely

      September 23, 2018 at 8:59 pm

  2. It is not the corruption noise that is killing the economy. It is the actual corruption of our politicians that is killing the economy. These are same people that we elect to be the custodians of our economy. In Zambia, the masses are poor, most of the wealth is in the hands of corrupt politicians and corrupt politically-connected individuals. Therefore, no amount of financial patriotism from the poor masses will make any significant difference. We should not be attempting to create smoke screens to deceive investors that our economy is healthy when we know it is not. We should be seeking to reform our political and governance systems to safeguard our resources.

    September 23, 2018 at 4:40 pm

  3. This fo0lis boy is the worst PF cadre I have ever known. I have now understood why Russian educational qualifications are not respected and accepted in most parts of the world.
    I am shocked at this Russian trained chap’s warped thinking

    September 23, 2018 at 4:59 pm

  4. I do agree with Dr. Habazoka , it is only zambians in this world who hate their brothers and sisters they would rather see them suffer than support them .
    Why would you like your own people turn into destitutes and impoverished for no proper reasons , that is treasonous.
    You have your government into place to help solve problems as you continue shouting negativity about zambia it is your brotehrs and sisters and yourself who are going to suffer .what ever is happening to zambia it also reflects on you as a zambian.

    September 23, 2018 at 6:31 pm

    • Tell your govt to stop stealing, and people will stop talking negataive things

      September 23, 2018 at 6:46 pm

    • @Nshilimubemba, you miss the point entirely. It is not Zambians who want their brothers and sisters to suffer. Stop this nonsense of calling anyone who points out the wrongs of this government unpatriotic or an opposition sympathizer. It is the corrupt politicians in government with an insatiable greed that is causing the common Zambian to suffer. If you are going to talk about patriotism, stuff it in the the secret places of our politicians! They are the most unpatriotic fools.

      September 24, 2018 at 4:26 am

  5. I like this

    pure Zambian
    September 23, 2018 at 9:55 pm

  6. So according to this guy we must not condemn but embrace stealling and corruption for the sake of other words he is suggesting these evils must continue. What damages the economy is it corruption or exposing corruption? What kind of thinking is this?

    Life Experience
    September 24, 2018 at 9:05 am

  7. However do you mind what is affecting you , whom do you think will lift your standard of living is it someone from some where , if you brake your own economy no one will invest in your country because you are careless and no one will trust you , your mind set as zambians is pathetic you all say tulyemo .
    You are all the same either in government or in opposition your mind set is the same.
    your kwacha is now nose diving because of your hard talk and it will remain so if you dont tune down. Don’t expect anyone to sympathize with you if you cannot be considerate towards your own affairs.

    September 24, 2018 at 12:25 pm

  8. I thought this guy was intelligent only to find out he is an idiot. Habazoka i have lost all the respect i had for you. You are a very useless baboon.

    September 26, 2018 at 7:36 am

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