Fred M'membe Criticizes 2025 National Budget

Warns of Economic Stress should the status quo continue

By Francis Maingaila

Lusaka, Zambia24 – (9-10-2024) - Socialist Party President Fred M'membe has criticized the proposed 2025 national budget, labeling it a "political budget" and cautioning Zambians to brace for increased economic hardships in the coming year.

Speaking on Wednesday at a media briefing, M'membe expressed doubts about the government's projected 2.3% economic growth rate, citing a lack of activity across key sectors of the economy.

According to M'membe, the nation's economic engines have stalled, making it unlikely that the targeted growth can be achieved. 

"All economic activities have gone to sleep," he remarked, adding that the government's optimism for recovery appears disconnected from the reality on the ground.

M'membe also took aim at the government's much-publicized debt restructuring efforts, arguing that it offers little relief to ordinary citizens. 

While the debt restructuring is being celebrated as a milestone, M'membe noted that it does not alleviate the burden on the public.

 "It is not taking away the money which the people were supposed to use to service the debt," he said, implying that the population will continue to shoulder financial strain despite the government's actions.

Further criticizing the state of the economy, M'membe pointed to the energy sector as a key factor behind the worsening economic situation. 

He emphasized that the country's energy challenges, including persistent power outages and high energy costs, have crippled industries and disrupted economic productivity. 

"Without a stable energy supply, businesses cannot operate efficiently, agriculture is being affected, and manufacturing has come to a standstill," he explained.

M'membe blamed the government for failing to invest adequately in sustainable energy solutions, which he says has exacerbated the crisis. 

He also accused authorities of neglecting the energy sector's potential to drive growth.

 "The energy sector should be the backbone of our economy, but it has been neglected, leaving businesses struggling and investors hesitant," M'membe said, stressing that the lack of reliable power is deterring foreign investment and slowing down economic recovery.

In addition to his critique of the energy sector, M'membe attacked the government for not putting in place systems that could support production and promote economic growth. 

He argued that the country is missing out on opportunities to stimulate local production across sectors such as agriculture, manufacturing, and mining. 

"The government has failed to create the conditions necessary for production to thrive. Without proper support systems, farmers are unable to increase their yields, factories are operating below capacity, and the mining sector remains underdeveloped," he said.

M'membe underscored that the lack of production-oriented policies has left the economy vulnerable and overly dependent on imports, further weakening the nation's trade balance. 

"We should be focusing on building a self-sustaining economy by empowering local producers and manufacturers. But instead, we continue to import goods that we could produce ourselves, leading to capital flight and a widening trade deficit," he lamented.

He called for urgent reforms to create an enabling environment for local businesses to thrive, which he believes would promote job creation and enhance Zambia's economic resilience. 

"Without a system that encourages local production, we are only deepening our economic woes. The government must establish strong production support frameworks, including access to affordable finance, modern technology, and infrastructure improvements," M'membe added.

M'membe went further to express doubt over the UPND administration's capacity to alleviate the growing levels of poverty in Zambia. 

He claimed that the government's policies lack the focus and vision needed to tackle the structural issues driving widespread poverty.

"The UPND government is out of touch with the real struggles of the people. Their policies are not addressing the root causes of poverty, and I see no genuine efforts to create sustainable livelihoods for the majority of Zambians," M'membe said.

He also questioned the government's commitment to poverty reduction, arguing that most of its policies have benefitted the elite, leaving the poor in even more desperate conditions. 

"They claim to care about the people, but their budget and policies tell a different story. Poverty is worsening, and I don't believe the UPND has the capacity or the political will to reverse this trend," he charged.

M'membe also criticized the government's failure to allocate sufficient funds to strategic sectors of the economy, which he believes will exacerbate the economic challenges Zambians are already facing.

 "The government has not prioritized key areas that are critical to stimulating growth, such as agriculture, health, education, and infrastructure development. Without sufficient funding in these sectors, we are heading toward more problems in the coming years," M'membe warned.

He argued that by neglecting these strategic sectors, the government is depriving Zambians of opportunities for improved livelihoods and sustainable economic progress. 

"When you fail to invest adequately in agriculture, for example, you are not only stifling food production but also risking food security for millions of citizens," he said, pointing out that insufficient investment in farming has left many small-scale farmers struggling with outdated equipment, poor access to markets, and rising input costs.

M'membe further noted that underfunding in health and education has long-term consequences for the nation's development.

"We cannot build a prosperous nation when our people are sick and uneducated. The budget should have been more focused on increasing funding in healthcare to ensure access to quality medical services, and on education to empower the next generation with the skills they need to drive the economy forward," he added.

He emphasized that without bold and strategic investments in these crucial areas, Zambia's economy will remain stagnant, and the people will continue to suffer. "The lack of commitment to investing in what matters most shows that the UPND government is more interested in short-term political gains than in building a strong and sustainable economy for the future," M'membe concluded.

M'membe also took issue with the state of governance, blaming poor governance systems for the current economic and social challenges. He argued that the deteriorating governance structure is a symptom of a shrinking civic space in the country. 

"The UPND government has failed to put in place transparent and accountable systems that would promote good governance. What we are seeing instead is a clampdown on dissenting voices and civil society organizations, which are crucial for holding the government accountable," M'membe said.

He explained that reduced civic space and growing authoritarian tendencies are signs of poor governance, which ultimately hurt the economy and the well-being of citizens.

"When you stifle the voices of those who can offer constructive criticism, you are essentially creating a governance system that operates in a vacuum, disconnected from the needs of the people. This is a dangerous path, and it is contributing to the current crisis," he warned.

M'membe emphasized that good governance is essential for sustainable development and economic recovery. 

He urged the government to reverse its policies that have limited freedom of speech and assembly, which he believes are necessary for a functioning democracy. 

"The government's failure to uphold democratic principles and create an open civic space is a major factor behind the worsening situation in the country. Until we have proper governance systems in place, the people will continue to face more problems in the coming years," M'membe concluded.

M'membe urged Zambians to take charge of their destiny and work towards redeeming themselves from the miseries caused by what he described as the misrule of the current UPND administration. 

He implored citizens to recognize the need for collective action in holding the government accountable for its failures and pushing for change.

"Our people need to rise up and redeem themselves from the miseries created by this administration’s mismanagement. The UPND government has failed to deliver on its promises, and it is up to the people to demand better leadership and policies that reflect their needs," M'membe said. 

He called for unity among Zambians in resisting policies that are detrimental to their well-being and emphasized the importance of political participation in changing the trajectory of the country.

M'membe advised the public to become more politically engaged, encouraging them to exercise their democratic rights and vote for leaders who have a clear plan for addressing poverty, unemployment, and economic stagnation. 

"It is not enough to sit back and wait for things to change. The people have the power to bring about the change they seek, and that starts with being active participants in the political process," he stated.

He also urged Zambians to be vigilant and not be swayed by short-term political promises. 

"We cannot afford to be fooled again by empty rhetoric. The people must choose leaders who have demonstrated a genuine commitment to the welfare of the nation, not those who prioritize their own political survival over the well-being of the people," M'membe said, stressing that real change will only come when the country has leaders who are accountable and focused on long-term solutions.

In a rallying call to the nation's youth, M'membe emphasized the role they can play in shaping Zambia's future. 

"Our young people, in particular, need to take the lead in this fight for a better Zambia. They are the ones most affected by unemployment, poverty, and the lack of opportunities. It is their future at stake, and they must not be silent in the face of such challenges," he added.

M'membe concluded by encouraging Zambians to unite in demanding better governance and policies that prioritize the needs of the people. 

"The road to redemption starts with us – the people. Together, we can overcome the challenges we face and build a prosperous Zambia that works for everyone, not just a privileged few," he said.