Let’s defends our gains - Dr Musokotwane

 ZAMBIANS should defend the economic gains the UPND has so far scored in the last five years by renewing the mandate of President Hakainde Hichilema in the August 13 general elections, Dr Situmbeko Musokotwane has said. 

Dr Musokotwane, the former Finance Minister has diametrically differed with Brian Mundubile, the Tonse Pamodzi Alliance presidential candidate, who has lampooned government for boasting about the US$6.5 billion foreign reserves when Zambians are unable to afford their basic needs because of the high cost of living. 

Dr Musokotwane said in a statement yesterday that Mr Mundubile did not understand the governance of the country by scoffing at Zambia’s foreign reserves, which he said were an indicator of a healthy economy.

 He accused Mr Mundubile of planning to wipe out the US$6.5 foreign reserves should he be elected President in the August general elections, stating that the Tonse Pamodzi leader should therefore not be trusted with power. 

“A few days ago, Brian Mundibile criticized the UPND government that it is unnecessary to have built foreign exchange reserves to reach US$6.5 billion, a record never attained before since independence. In his view, this foreign exchange money must be spent. Further, he says low inflation for Zambia for him is irrelevant,” Dr Musokotwane said.

 “As he continues to campaign to be the next President of Zambia Mr Mundubile makes statements that clearly show that he is totally unsuitable for that office. His statements demonstrate that he has no clue about even the basic things that are required to make a country prosper. To the contrary the country will run aground under his leadership,” he said.

 Dr Musokotwane explained that foreign exchange reserves were the savings of a country in foreign currency held by the central bank like the Bank of Zambia.

 He said when the reserves were adequate, imports could be paid for without creating pipelines (shortages) as was the case in the 1990s as well as external debt being paid for without defaulting as it happened in 2020 under the PF. 

“Importantly, inadequate reserves means the country lives from hand to mouth. Any small disturbance means the country falling on its knees. So far, under the UPND administration, Zambia has avoided such a catastrophe.  Here is an example. Currently there is a crisis of fuel in the world because of the war in Iran,” he said.

 “The cost of fuel in the world has risen with the consequence that weak countries are unable to mobilize sufficient foreign exchange to import fuel. They are experiencing shortages of fuel and their citizens have to wait in lines to buy fuel.  Zambia is not experiencing such problems because it has adequate foreign exchange reserves to easily absorb the effects of the world fuel crisis without the citizens experiencing serious shortages,” Dr Musokotwane explained. 

Dr Musokotwane it was shocking that a presidential candidate could say that the level of inflation in Zambia is irrelevant.