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Public policy researcher and analyst, James Musonda, has criticised the Bank of Zambia’s (BoZ) K5 billion Stability and Resilience Facility (SRF), aimed at safeguarding financial stability, calling it “wrong treatment for a right diagnosis.”
In a statement issued on Saturday, Musonda argued that while BoZ correctly identified the challenges facing Zambia’s economy, its proposed solution was flawed.
“This BoZ intervention can be described as the wrong treatment for a right diagnosis. This is how the United Party for National Development’s (UPND) upside-down economic policies continue to miss the point,” Musonda said.
He suggested that instead of providing loans, the government should have focused on addressing the critical issue of power shortages.
“While capital is needed by most SMEs and farmers, the major problem affecting this country is the lack of power,” he argued.
“The BoZ identifies the problem and makes the right diagnosis; however, it provides the wrong medicine.”
He further contended that farmers would simply consume the funds without achieving lasting improvements.
“If you give them electricity, they could find alternative ways to irrigate their crops, feed their livestock, and fish,” Musonda explained.
On Friday, Zambia Monitor reported that the Bank of Zambia had launched the SRF, with a funding allocation of K5 billion for a 12-month period, starting December 30, 2024.
The facility aimed to enhance financial sector resilience, particularly in light of the 2023/2024 dry spell’s impact.
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