K10bn stimulus package won’t impact economy
Published On August 29, 2020 » 1694 Views» By Chibu Musonda » Stories
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By REBECCA MUSHOTA
FORUM for Democracy and Development (FDD) president Edith Nawakwi has said the K10 billion stimulus package will not have an impact on the economy because it is helping banks sustain operations rather than
putting money in businesses.
Ms Nawakwi said that as far as she knew,  the K10 billion stimulus package was given to banks to enable them enable their loan clients spread their debt repayment or pay lower interest rates.
She said the more effective way the stimulus package was going to be effective,  was to give Zambian businesses loans.
“Because when you have the cash, you can sustain jobs and invest in expansion of the business and that will increase money in circulation in the country,” Ms Nawakwi said on Hot FM on Thursday.
She said under the current format, the nation would never witness a business owner testify to have received additional funds.
Ms Nawakwi said she was hopeful BoZ under the new leadership of Chris Mvunga would ensure Zambian businesses accessed the funds. She also said Mr Mvunga deserved a chance to work before getting criticised.
Ms Nawakwi said Zambians should not be detracted by foreign stakeholders like the International Monetary Fund (IMF) that has expressed concern over the removal of Denny Kalyalya as BoZ governor.
She said the if the IMF had so much confidence in Dr Kalyalya, they would have ensured that Zambia benefits from Corona virus stimulus packages they are offering many other nations. Ms Nawakwi also said Zambia should not give so much weight to what the South African minister of Finance Tito Mboweni said.
She said his comments on how Zambia is run are intolerable and Zambians should be less tolerant of foreigners commenting on their internal matters.

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