Author: Socialist Party ZambiaThe Socialist Party is a political formation whose primary mandate is to promote and entrench socialist values in the Zambian society. Anchored on the principles of Justice, Equity and Peace (JEP), the Socialist Party shall transform the Zambian society from capitalism to socialism, building socialism in three key sectors: Education, Agriculture and Health.

    Reflections on the economy

    Reflections on the economy Featured

    February 22, 2023 by Socialist Party Zambia in

    The Bank of Zambia has failed to meet the required K2.6 billion per bond auction as only K854 million was raised during the latest auction results published on February 17 this year.

    The subscription rates are an economic barometer of the economy, as an over subscription is generally seen as mark of economic confidence by investors, while an under subscription is seen as a score for low investor confidence.

    The Bank of Zambia, trying to raise funds on behalf of the government by issuing government bonds, only managed to raise K854 million out of the targeted K2.6 billion, an under subscription or low uptake of 32 per cent. Investors are on the fence due to uncertainty with regards to national debt restructuring.

    We will not be surprised if the bankers of economic evils eventually start printing money.

    These are the effects of removing liquidity from the markets. We strongly suspect financial institution participation in government securities has dwindled resulting in low subscriptions, meaning the funding of government operations will be negatively impacted.

    And we don’t think this is caused by debt restructuring uncertainty as is being suggested. This should be seen as a direct consequence of low liquidity levels primarily, and the possible pull out of non-resident investors upon maturity of their securities. The rise in interest rates in the United States and Europe is also incentivising non-resident investors to pull out of emerging markets bond investments and redirecting back to the United States and Europe which carry less country risk than emerging markets, in other words in more secure economic environments.

    The maturity risk is now materialising whereby offshore investors in government securities are now cashing out on maturity of their investments instead of rolling over. So we will now end in a net payout position for government securities with the following consequences:

    (i) Depletion of international reserves as investors externalise their investment. The question is: what are the international reserves cover for offshore investment holding in government securities?

    (ii) Pressure on the Kwacha with a medium-term outlook of continued depreciation, which will result in higher, imported inflation impact.
    The question is: how will the increase in statutory reserve ratio, which has reduced liquidity in the market, mitigate this? Ultimately it appears this policy measure is impotent – for lack of a better word. Worse still, it slows down economic growth.

    (iii) Under subscription in government securities, which is one of the main sources of funds for government operations, will significantly affect funding of government operations, including civil servants’ payroll.

    Based on February 17 under subscription of only K845 million out of a total offer of K2.6 billion means the government has to look elsewhere to raise funds for the shortfall. The question is: given the already underperforming economy, what alternatives does government have? External loans. But who will be ready to give us loans? The commercial loans window is closed given the debt default and limited bilateral funding.

    Where to as a country?

    • Reverse the generous tax holidays given to the mining sector.
    • Engage China on a bilateral basis to give us a three-year moratorium on its debt while we grapple with the never-ending IMF-G20 common framework.
    • Introduce austerity measures, including government-wide international travels at all levels, including for the Head of State.

    Lastly, reverse wrong monetary policy decisions taken by the Bank of Zambia to increase the statutory reserve ratio. The under subscription in government securities, stated above, is partially due to reduced participation of the banks in subscribing to government securities. It is also clear that this policy direction will not impact the exchange rate depreciation as it is now evident that the forex demand side is significantly driven by non-resident/offshore investors cashing out and not rolling over their government securities. This is a highly misdirected policy decision. As if this is not enough, the MPC was further increased by 0.25 per cent, making it unbearable for those with commercial loans and those intending to borrow. We hope your new 4×4, which was funded using vehicle and asset finance, will not be taken away if you default due to the high cost of credit.

    Austerity measures should also include Mr Hakainde Hichilema moving to Nkwazi House to defray his daily transportation costs to and from his not so Community House and route lining costs. The country is bleeding and we can’t keep up with the same excuse of Nkwazi House being uninhabitable when ordinary citizens are going without food.

    A leader should lead by example from the front and demonstrate that he, too, is sacrificing.

    Fred M’membe

    Tribalism in Zambia Police

    Tribalism in Zambia Police Featured

    February 21, 2023 by Socialist Party Zambia in

    There is a need for Mr Hakainde Hichilema to explain why Zambia Police key command positions at all levels and in all departments or units are predominantly occupied by people from one ethnicity and related ethnicities almost to the exclusion of all others.

    Is it by pure merit or coincidence that:

    1. Inspector General of Police Lemmy Kajoba is KAONDE?
    2. Deputy Inspector General of Police (State House) Fanwell Siandenge is TONGA?
    3. Deputy Inspector General of Police (Operations) Milner Libusa Muyambango is LOZI?
    4. Deputy Inspector General of Police (Administration) Doris Nayame is MAMBWE?
    5. Director Administration Byemba Musole is LOZI?
    6. Director CID Yuyi Mwala is LOZI?
    7. Deputy Director CID Maxwell Timba is TONGA?
    8. SPIO (Intelligence) Mweemba Robertson is TONGA?
    9. PRO Rae Hamoonga is TONGA?
    10. Commissioner Administration Auxensio Daka (who is said to have been recommended by the late president Lupiya Banda) is NSENGA?
    11. Quarter Master Mubita Munenbo is LOZI?

    STATE HOUSE POLICE:

    1. DIG Fanwell Siandenge is TONGA?
    2. Aide de Camp Shapa Wakung’uma is LOZI?
    3. Commissioner of Police Justin Moolo is TONGA?
    4. In Charge Administration Malambo is TONGA?
    5. In Charge Intelligence Chiwala is TONGA?
    6. In Charge Operations Lumanyendo (a relative of Siandenge and coming from the same village) is TONGA?
    7. Senior Driver Mubiana is LOZI (but they often opt to use his junior Mbaimba who is TONGA)?
    8. In Charge Bodyguard Siandiza is TONGA?
    9. Callabashi-Mrs Serah Mwenya (BEMBA)?
    10. Armoury in Charge Mumeka is KAONDE?
    11. Food Analyst Mazaza is LUNDA?
    12. In Charge Garage Kakeja is KAONDE?
    13. Quarter Master Mukolo is LOZI?

    COMMISSIONERS OF POLICE:

    1. Lusaka Province – Kreto Nkaanza is TONGA?
    2. Copperbelt Province – Peacewell Mweemba is TONGA?
    3. Central Province – Mukuka Davies Chileshe (who is a close associate of Deputy Inspector General Muyambango) is BEMBA?
    4. Eastern Province – Limpo Liwali is LOZI?
    5. Northern Province – Gloria Mulele (a very close associate of DIG operations Milner Muyambango) is TONGA?
    6. Muchinga Province – Mubaanga Kaunda is LUNDA?
    7. Luapula – Fwambo Siame is MAMBWE?
    8. Southern – Paul Achiume is TUMBUKA?
    9. North Western Province – Dennis Moola is TONGA?
    10. Western Province – Roy Kashimba is LUNDA?

    UNIT COMMANDERS:

    1. Paramilitary – Yobe Luhana (who is step brother to Deputy Inspector General Siandenge) is TUMBUKA?
    2. Protective Unit – Fred Hamamba is TONGA?
    3. Airport – Robison Moonga is TONGA?
    4. Lilayi College – Desmond Mwaanza is TONGA?
    5. TAZARA – Simon Mbaulu is LUVALE?
    6. Mobile Unit – Pethias Siandenge (who is younger brother of Deputy Inspector Siandenge) is TONGA?

    PROVINCIAL POLICE
    INTELLINGENCE:

    1. Lusaka Province – Malambo Muchinda is TONGA?
    2. Northern Province – James Chiti is BEMBA?
    3. Luapula Province – Chimuli Kapenda is LUVALE?
    4. Muchinga Province – Munankopa Nesbert is TONGA?
    5. North Western Province – Abel Chifumpa is LENJE?
    6. Southern Province – Clement Matomola is LOZI?
    7. Central Province – Limwanya Kapupa is LOZI?
    8. Copperbelt Province – Chris Chipepo Chiyabi is TONGA?
    9. Eastern Province – Edify Milambo is TONGA?
    10. Western Province – Joe Malumo is LOZI?

    UNIT INTEL OFFICERS:

    1. College – Mponyela Ireen is LOZI?
    2. Mobile Unit – Kanondo Royd is LUNDA?
    3. TAZARA – Fwankila is TONGA?
    4. Airport – Mbwainga Harry is TONGA?
    5. Protective Unit – Kaumbi Lilian is LOZI?
    6. Paramilitary – Neverson Mpundu is BEMBA?

    These are the key positions in Zambia Police.
    Like Deputy Inspector General Siandenge, some of these officers were part of the UPND security team. Two of Deputy Inspector General Siandenge’s brothers are in charge of the two striking police units – paramilitary and mobile units.

    Where does this staffing of the police leave the opposition when it comes to policing politics and elections? Would Mr Hichilema keep quiet and accept this if he was in opposition?

    These are honest questions seeking honest answers.

    Fred M’membe
    President of Socialist Party Zambia

    More money problems!

    More money problems! Featured

    February 3, 2023 by Socialist Party Zambia in

    The Bank of Zambia has issued an instruction to commercial banks in Zambia to reduce money circulation further by increasing the statutory reserve ratio it holds.

    The statutory reserve ratios, “will be increased by 2.5 percentage points to 11.5 per cent from the current 9.0 per cent. The revised statutory ratio of 11.5 per cent will be based on the weekly return of selected assets and liabilities from next Wednesday, February 8 2023.

    The decision by the Bank of Zambia to increase the bank reserve ratio means more money problems for Zambians.

    In a word, the Bank of Zambia move has effectively squeezed money out of circulation which will force commercial banks to only deal or lend money to pristine clients like mines or big business.

    The ordinary already poor Zambian shall suffer even more as money is squeezed out of the market and suppliers are not paid, its going to be tough for many poor Zambians.

    What Zambians need is more money and not less money – more, and not less, money in circulation.

    Say increases minimum balance on your savings account from K500 to K600. Which means whilst previously you could access K500 of your money if your account balance is K1,000, now you can only access K400. To put this into perspective, it means all commercial banks balances held by the Bank of Zambia, the commercial banks will have 2.5 per cent reduction on the funds they can access for onward lending to their clients. Nationally it means commercial now have less funds to lend when SMEs that are crying for access to credit.

    Clearly, there’s a lot of pressure on the Bank of Zambia to keep the exchange rate low in line with the promise made by Mr Hakainde Hichilema to keep athe Kwacha appreciating.

    This will mean more money because increasing the (reserve requirement) ratios reduces the volume of deposits that can be supported by a given level of reserves and, in the absence of other actions, reduces the money stock and raises the cost of credit.

    Reserve requirements are one of the monetary policy tools the Bank of Zambia uses to implement monetary policy. However, an over employment of changes in reserve requirements to enact monetary policy can be very detrimental. Open market operations are a much more precise tool.

    A change in the reserve requirement ratio affects bank credit and the money stock. Reserve requirements are the percentage of deposits that depository institutions must hold in reserve and not lend out.

    There are several reasons why reserve requirements are not frequently changed, the most important of which is that open market operations provide a much more precise tool for implementing monetary policy.

    The impact of changes in reserve requirements is difficult to estimate; each change has the potential to affect depository institutions in different ways, depending on each institution’s deposit base. Changes in reserve requirements also my lead to changes in pricing schedules for some bank services, because some bank fees and credits are set based on reserve requirements.

    Fred M’membe
    President of the Socialist Party

    WHAT’S FUELLING TRIBAL POLITICS DEBATES? Featured

    January 31, 2023 by Socialist Party Zambia in

    It seems Mr Hakainde Hichilema and the UPND are perched on the defensive over accusations of tribalism. Why? Probably it is because of the promises they made to have a tribal and regionally balanced and representative government. Critiques are asking if what they are seeing is equal to what they were promised:

    • President (Tonga)
    • Vice-President (Bemba married to a Lozi)
    • Speaker (Lozi)
    • Chief Justice (Lenje)
    • Acting President of the Constitutional Court (Lozi)
      Attorney General (Lenje)
    • Solicitor General (Tonga)
    • Chairman of the Judicial Service Commission (Lozi)
    • Chairman of the Judicial Complaints Commission (Tonga)
    • Commissioner of Lands (Tonga)
    • Chief Legal Advisor to the President (Lozi)
      Minister of Justice (Tonga).

    They are saying the key state institutions and the country’s justice system are basically is the hands of Tongas and Lozis (with very little or no meaningful participation from the rest)

    They are saying the same about the key government ministries (Ministries that are not easily done away with by any government):

    • Home Affairs (Tonga)
    • Local Government (Tonga)
    • Education (Tonga)
    • Tourism (Tonga)
      -Justice (Tonga)
    • Foreign Affairs (Lenje)
    • Health (Soli)
    • Defence (Luvale)
    • Infrastructure (Lozi)
    • Finance (Lozi)
    • Lands (Lunda)
    • Governor of Bank of Zambia (Tonga).

    The rest are, in the main, pushed to ministries that can easily be done away and receive very limited budgetary allocations.

    They say the picture is the same for key defence and security agencies:

    • Zambia Army Commander (Lozi)
    • Zambia Air Force Commander (Kaonde)
    • ZNS Commandant (Luvale)
    • Inspector General of Police (Kaonde)
      Director General of Intelligence (Lozi)
    • Commissioner General of Correctional Services (Tonga)
    • Chief Immigration officer (Lozi)

    They are saying in all these key command defence and security positions there’s no one from the East or the North as the political leadership to keep the tribal and regional balance the political leadership had promised.

    They are also pointing to the Electoral Commission of Zambia:

    • chairperson (Lozi)
    • vice-person (Mambwe)
    • the other three commissioners are Tonga, Lozi and Lunda

    There’s no one from the East or the North proper.

    These concerns are raised about lower positions in these and other state, government and quasi government institutions and agencies.

    These are the concerns they are raising and the response is to label them tribalists, divisive elements and prosecute or persecute them on charges of tribal hatred.

    With these concerns and the debates they are generating our multiparty political dispensation is back on the spot. The concern is no longer the lack of political pluralism or diversity, but the hijacking of the political processes by tribal politics.

    The challenge to our multiparty political dispensation is not the prevalence of ethnic diversity, but the use of identity politics to promote narrow tribal interests. It is tribalism.

    But the African experience over the last six decades has
    shown us the dangers of ethnic competition and underscore the importance of building nations around ideas rather than clan identities.

    In the absence of efforts to build genuine political parties with clear ideologies that compete on the basis of ideas, we have reverted to tribal identities as foundations for political competition.

    Leaders are often exploiting tribal loyalty to advance personal gain, parochial interests, patronage, and cronyism. How else can one explain the tribal or regional voting that was confirmed by a Commission of Inquiry following the 2016 elections?

    We shouldn’t forget the fact that tribes are not built on multiparty democratic ideas but thrive on zero-sum competition. As a result, they are inimical to multiparty democratic advancement.

    In essence, tribal practices are occupying a vacuum created by lack of strong multiparty democratic institutions. The political parties are unable to find common ground through coherent party manifestos and ideological positions.

    Many members of our political parties often don’t even know that their parties have manifestos.

    The manifestos are generally issued just before the elections because much of the effort goes into regional manoeuvring and building tribal alliances.

    Tribal politicians are clever and calculating.
    They are quick to dress in the latest fashion and co-opt emerging trends to preserve their identities. They buy influence and create convenient alliances.

    Their sole mission is self-preservation, with the side effect of subverting multiparty democratic evolution.
    For them tribal politics is a zero-sum game.

    The way forward for our multiparty democracy lies in concerted efforts to build modern political parties founded on strong ideological foundations, clear development ideas and not tribal bonds.

    Such political parties must base their competition for power on ideological and development platforms.

    Defining party platforms will need to be supported by the search for ideas – not the appeal to tribal coalitions.

    Political parties that create genuine ideological and development platforms will launch initiatives that reflect popular needs.

    Those that rely on manipulating ethnic alliances will bring sectarian animosity into government business by appointing to key government positions people from their tribes and allied ethnicities.

    Party manifestos should fundamentally be documents in which parties outline their principles and goals in a manner that goes beyond popular rhetoric and cheap promises. They should arise from careful discussion, compromise, and efforts to express the core values and commitments of the party.

    But building clear party platforms requires effective intellectual input, usually provided through think-tanks and other research institutions. Most of our political parties lack such support and generally their manifestos are cobbled together with little consultation.

    Tribal groupings see themselves as infallible but parties have to be accountable to the people.

    By stating a vision for the future, political parties provide voters with ways to measure their performance on all fronts.

    Forging platforms fosters debate within parties that transcend tribal differences. Such debates are a central pillar of multiparty democracy. Building modern political parties and associated think-tanks is, therefore, the most urgent way to counter tribal politics. Policy debate is a key element of multiparty democracy.

    Specific manifestos would foster healthy political competition that would force parties to distinguish themselves from each other. Conversely, such debates would also help to illustrate areas of common interest.

    Indeed, it is becoming clear that issues such as poverty, infrastructure – energy, transportation, agriculture and food, and telecommunication – and youth employment are emerging as common themes in our politics irrespective of ideological differences.

    So long as multiparty democracy offers the best chance for sustained growth and prosperity, tribal politics must be replaced by genuine party platforms and modern democratic institutions like think-tanks.

    Otherwise our road to doom will continue to be paved by tribal intentions.

    Fred M’membe
    President of the Socialist Party

    What’s fueling tribal politics debates?

    What’s fueling tribal politics debates? Featured

    January 31, 2023 by Socialist Party Zambia in

    It seems Mr Hakainde Hichilema and the UPND are perched on the defensive over accusations of tribalism. Why? Probably it is because of the promises they made to have a tribal and regionally balanced and representative government. Critiques are asking if what they are seeing is equal to what they were promised:

    • President (Tonga)
    • Vice-President (Bemba married to a Lozi)
    • Speaker (Lozi)
    • Chief Justice (Lenje)
    • Acting President of the Constitutional Court (Lozi)
      Attorney General (Lenje)
    • Solicitor General (Tonga)
    • Chairman of the Judicial Service Commission (Lozi)
    • Chairman of the Judicial Complaints Commission (Tonga)
    • Commissioner of Lands (Tonga)
    • Chief Legal Advisor to the President (Lozi)
      Minister of Justice (Tonga).

    They are saying the key state institutions and the country’s justice system are basically is the hands of Tongas and Lozis (with very little or no meaningful participation from the rest)

    They are saying the same about the key government ministries (Ministries that are not easily done away with by any government):

    • Home Affairs (Tonga)
    • Local Government (Tonga)
    • Education (Tonga)
    • Tourism (Tonga)
      -Justice (Tonga)
    • Foreign Affairs (Lenje)
    • Health (Soli)
    • Defence (Luvale)
    • Infrastructure (Lozi)
    • Finance (Lozi)
    • Lands (Lunda)
    • Governor of Bank of Zambia (Tonga).

    The rest are, in the main, pushed to ministries that can easily be done away and receive very limited budgetary allocations.

    They say the picture is the same for key defence and security agencies:

    • Zambia Army Commander (Lozi)
    • Zambia Air Force Commander (Kaonde)
    • ZNS Commandant (Luvale)
    • Inspector General of Police (Kaonde)
      Director General of Intelligence (Lozi)
    • Commissioner General of Correctional Services (Tonga)
    • Chief Immigration officer (Lozi)

    They are saying in all these key command defence and security positions there’s no one from the East or the North as the political leadership to keep the tribal and regional balance the political leadership had promised.

    They are also pointing to the Electoral Commission of Zambia:

    • chairperson (Lozi)
    • vice-person (Mambwe)
    • the other three commissioners are Tonga, Lozi and Lunda

    There’s no one from the East or the North proper.

    These concerns are raised about lower positions in these and other state, government and quasi government institutions and agencies.

    These are the concerns they are raising and the response is to label them tribalists, divisive elements and prosecute or persecute them on charges of tribal hatred.

    With these concerns and the debates they are generating our multiparty political dispensation is back on the spot. The concern is no longer the lack of political pluralism or diversity, but the hijacking of the political processes by tribal politics.

    The challenge to our multiparty political dispensation is not the prevalence of ethnic diversity, but the use of identity politics to promote narrow tribal interests. It is tribalism.

    But the African experience over the last six decades has
    shown us the dangers of ethnic competition and underscore the importance of building nations around ideas rather than clan identities.

    In the absence of efforts to build genuine political parties with clear ideologies that compete on the basis of ideas, we have reverted to tribal identities as foundations for political competition.

    Leaders are often exploiting tribal loyalty to advance personal gain, parochial interests, patronage, and cronyism. How else can one explain the tribal or regional voting that was confirmed by a Commission of Inquiry following the 2016 elections?

    We shouldn’t forget the fact that tribes are not built on multiparty democratic ideas but thrive on zero-sum competition. As a result, they are inimical to multiparty democratic advancement.

    In essence, tribal practices are occupying a vacuum created by lack of strong multiparty democratic institutions. The political parties are unable to find common ground through coherent party manifestos and ideological positions.

    Many members of our political parties often don’t even know that their parties have manifestos.

    The manifestos are generally issued just before the elections because much of the effort goes into regional manoeuvring and building tribal alliances.

    Tribal politicians are clever and calculating.
    They are quick to dress in the latest fashion and co-opt emerging trends to preserve their identities. They buy influence and create convenient alliances.

    Their sole mission is self-preservation, with the side effect of subverting multiparty democratic evolution.
    For them tribal politics is a zero-sum game.

    The way forward for our multiparty democracy lies in concerted efforts to build modern political parties founded on strong ideological foundations, clear development ideas and not tribal bonds.

    Such political parties must base their competition for power on ideological and development platforms.

    Defining party platforms will need to be supported by the search for ideas – not the appeal to tribal coalitions.

    Political parties that create genuine ideological and development platforms will launch initiatives that reflect popular needs.

    Those that rely on manipulating ethnic alliances will bring sectarian animosity into government business by appointing to key government positions people from their tribes and allied ethnicities.

    Party manifestos should fundamentally be documents in which parties outline their principles and goals in a manner that goes beyond popular rhetoric and cheap promises. They should arise from careful discussion, compromise, and efforts to express the core values and commitments of the party.

    But building clear party platforms requires effective intellectual input, usually provided through think-tanks and other research institutions. Most of our political parties lack such support and generally their manifestos are cobbled together with little consultation.

    Tribal groupings see themselves as infallible but parties have to be accountable to the people.

    By stating a vision for the future, political parties provide voters with ways to measure their performance on all fronts.

    Forging platforms fosters debate within parties that transcend tribal differences. Such debates are a central pillar of multiparty democracy. Building modern political parties and associated think-tanks is, therefore, the most urgent way to counter tribal politics. Policy debate is a key element of multiparty democracy.

    Specific manifestos would foster healthy political competition that would force parties to distinguish themselves from each other. Conversely, such debates would also help to illustrate areas of common interest.

    Indeed, it is becoming clear that issues such as poverty, infrastructure – energy, transportation, agriculture and food, and telecommunication – and youth employment are emerging as common themes in our politics irrespective of ideological differences.

    So long as multiparty democracy offers the best chance for sustained growth and prosperity, tribal politics must be replaced by genuine party platforms and modern democratic institutions like think-tanks.

    Otherwise our road to doom will continue to be paved by tribal intentions.

    Fred M’membe
    President of the Socialist Party