… to Derrick Sinjela and other citizens
By Fresher Siwale –President of the New Labour Party (NLP)
‘Truth be Told’ the ‘Financial Sector in Zambia’ is in limbo and cannot be relied upon to undertake national development.
And this ‘State of Affairs’ has a history but unfortunately the powers that be have been neglecting to address the problem either they are ignorant and do not understand the problem or it is sheer negligence.
The problem of our financial sector started with the ‘Mortgage Crisis’ of 1972, which remains unresolved to date.
Zambia happens to be the first nation on earth to have suffered the ‘Mortgage Crisis’ and other nations after Zambia have reviewed the Zambian case and resolved their problems including what was referred to as ‘the global crunch’.
Our interventions to the ‘Mortgage Crisis’ of 1972 have been half-hearted and based on ignorance at most and also on the attitude of matters will solve themselves (fikaisova mudala).
The first attempt resolve the mortgage crisis of 1972, was when the Zambian government approached the World Bank to assist and that assistance led to the famous Statutory Improvement Areas Act 1975, where all these shanties known as Site and Service schemes came from.
Whereas the problem that led to the ‘Mortgage Crisis’ in 1972 was the collapse of the mechanism for continuous recapitalisation of the financial sector, the World Bank solution to our crisis was rentals to councils under the Statutory and Improvement Areas Act. Therefore, the solution offered by the World Bank was at variance with our problem.
The next attempt to resolve ‘Mortgage Crisis’ 1972 was during Third Republican President, the late Dr. Levy Patrick Mwanawasa’s administration.
Experts were called into Siavonga and they came up with a document known as the Financial Sector Development Plan 2004 – 2009. Perusal of the document on the mortgage sector reads and I quote: “The Mortgage Sector in Zambia is Dead” and on proposed intervention measures it reads and I quote “NON“.
Because of the failure to resolve the ‘Mortgage Crisis’ of 1972, over a period of 49 years, our financial sector is nothing to write home about.
The ‘erosion of the capital base’ in the economy has happened under our watch.
‘Our banks’ have been reduced to ‘grocery shops’ where money is traded and cannot offer financial products and services to support the economy of Zambia to spur national development.
The ‘second problem’ in our financial sector is government policy on export production in the economy vis-a-vis national budgeting process.
The 100 per cent retention and the loss of production in the economy if they remain unaddressed our financial sector will continue to be affected negatively and hence continue to be an impediment to economic growth and national development.
Population administration and management (demographics) play a very large part in not only financial sector development but also in creating the economy and economic activities and directed industrialisation which leads to shaping of financial sector production of financial products and services to promote and enhance economic activity such as job creation, wealth creation and industrialisation itself.
The relationship between central government and local government which is based on the variation of functions when exploited to the maximum helps in shaping of the financial sector.
In conclusion the financial sector can only be as good as we all players government and citizens, institutions and individuals understand our roles and perform to best of our abilities and not guess work. Or to wait for matters to ‘Resolve Themselves’.
Kali Ya Ngile said: “Sir I would love to meet you in person. I have things to share with you”. Christopher Chimfwembe Bwalya described Siwale’s views as well articulated. Shichintu Mando Kampeshi noted: “Fresher Siwale, the New Labour Party President, Sir, why not offload this knowledge through or why not work with Government Platforms to help in resolving these issues they now chocking us the common people”. BA Muchindu said: “This Man Mean Well For Zambia And He Loves His Country Therefore I’m Asking Him To Offload This Knowdge To People In Autholity”. “I feel like I’m in class & you’re lecturing to me. This is awesome Sir Fresher Siwale,” said Bryan Mkakeni Mkandawire. Mainga Wanu Soko used a traditional recital: “Apongozi (Father-in-Law), like I told you years back, that to win a fight, must be in the ring and not outside. You’re such a knowledgeable/ Intelligent person,why can’t you join hands with any of these political parties and work together for a better Zambia”. Caesar Chikopa advised: “We need a body or organization that is above Politics with people like you to, sieve through our nation policies and charter our way forward as a nation. Having followed your articles carefully”.