Pitfalls, politics and policies

TILENI MONGUDHI and MATHIAS HAUFIKUOBSERVERS say Iipumbu Shiimi will have to tackle core economic and financial problems without fear or favour.

Economist Salomo Hei, who worked with Shiimi between 2012 and 2014, described the new finance minister as a “technical guy” who can get the work done.

However, he said, Shiimi needs to have an honest appreciation of where the country’s economy is right now.

“The economy already had problems before Covid-19. This pandemic just compounded the situation. He needs to ensure that the government becomes an income-generating entity and subsequently gets rid of inefficiencies and wastage in the system,” he said.

Hei, managing director of Makalani Fund Managers, urged Shiimi to be steadfast and not to submit to the private sector.

“A strong and capacitated treasury is key to give guidance to the private sector. Focusing only on creating a conducive environment for the private sector to flourish has clearly not worked,” he said.

Institute of Public Policy Research director Graham Hopwood said Shiimi’s economic stimulus measures and package are impressive, but the big test will be how quickly and effectively these proposals can be implemented.

Hopwood added Shiimi can boost his credibility and help the economy at the same time if he manages to implement most of what he promised in his stimulus package in the shortest possible time.

Hopwood said the new minister of finance faces the risk of failing at the first hurdle if he does not find practical ways of delivering interventions like the emergency income grant and wage subsidies.