Lusaka, Thursday (June 27, 2024)

President of the Socialist Party, Fred M’membe, has emphasized the crucial immediate economic steps that President Hakainde Hichilema and the UPND government should take to tackle Zambia’s economic difficulties.

He said these include reconsidering the significant tax privileges granted to multinational mining corporations.

Dr M’membe highlighted the current political turmoil and tension in the country, stressing that Zambia is currently facing substantial economic challenges.

He pointed out that rating agencies have taken note of this situation and expressed concern.

He said alongside the existing debt burden, the nation is grappling with a heightened cost of living, which could potentially lead to civil unrest.

Dr M’membe also underscored the adverse effects of prolonged power outages on businesses and the potential exacerbation of inflation and exchange rate risks due to low crop yields.

The SP President cautioned against further external borrowing, stating that even concessional borrowing would amplify Zambia’s

foreign debt exposure and raise the likelihood of future defaults.

Dr M’membe clarified that while revitalizing the mining sector and increasing copper production are medium-term strategies, they will not promptly alleviate the country’s economic challenges.

He strongly advised the authorities to promptly address the issue of mining tax waivers as a key immediate economic measure.

Dr M’membe urged those in power to take swift action on this matter.

This is contained in a statement issued by SP Director Media, Brian Hapunda.

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