President Hakainde Hichilema's (HH) Of Zambia, 1st Year In Office
A man's good economic policies and determination can go a long way in charting a new course for a nation & bringing about real change. A year may be too early to judge though.
Zambia defaulted on its sovereign debts in 2020 & won't be able to pay the $750m Eurobond that is maturing this year. To turn things around, HH canceled $2bn Chinese projects, consolidated their debts & got $1.3bn IMF loan.
- He reduced inflation from 24.6% in 2021 to 9.8% in August 2022
- GDP Growth 2020 - (-2.6%)
- GDP Growth 2021 - 1%
- GDP Growth 2022 - Projected 3.5%
The nations' currency (Kwacha) has appreciated by about 31.7% in 2022 from K22.6 to a $ in july 2021 to K15.43 in Sept 7, 2022 becoming the 2nd best performing currency in the world.
- Zambia has hired 41,000 teachers & healthcare workers.
- Shut down Indeni refinery to save the money used in importing crude & government stopped importing fuel rather private companies are importing fuel to free funds for other areas.
Due to HH's zeal for private investments in the mining sector & his free market approach, companies that have failed to invest and wanted to leave the country opened their wallets.
- First Quantum Approves $1.25bn Zambia Copper Expansion in Kansashi
- Barrick’s that had been planing to sell Lumwana mine, now staying & looking for more prospects
- Anglo American to return back to take 70% joint venture with Arc Minerals after 20 years.
His business friendly posture opened over $2bn investments for Zambia. Has HH done everything right? He hasn't. Would every action he has taken so far be popular? Hell no. What is going for him is that he has balls, the political will to tackle issues and stand by the tough choices.
Remember the economy was going downhill, the country just defaulted & he won against an incumbent President to tackle all these crises. Yes, he too has not removed fuel subsidy as he has planned pushing it to Sept 30, but prices have been adjusted upwards & fuel is selling for over $1 per litre even though VAT & import duty have been waived for oil import to cushion the effects of high prices of fuel due to Russian - Ukraine war. Fair enough so far.
