Dr Situmbeko Musokotwane is the country’s leading Monetary Economist and has built a reputation as a renowned statesman and efficient financial leader. Today he was appointed the new minister of finance and is the first person to be chosen to form part of Hakainde Hichilema’s cabinet. Dr Musokotwane was first appointed Minister of Finance under Rupiah Banda from 2009 – 2011. Hes held positions at the International Monetary Fund (1997-2000), as Treasurer to the Ministry of Finance (2003 – 2006, MMD), Economic Advisor to the President (2006 – 2008) and lectured briefly while obtaining his PHD from the University of Kostanz in 1985.
After holding the position of economic advisor to President Patrick Levy Mwanawasa for 2 years, Dr Musokotwane was first appointed Minister of Finance by the incoming President Rupiah Banda. An evaluation of a 2012 Bank of Zambia study indicates Musokotwane was an exceptional leader. During his term (judging based on the date of appointment) annual inflation reduced from 11% in Dec 2008 to 7% in Dec 2011. Food inflation reduced from 17% in Dec 2008 to 7% in Dec 2011, while non-food inflation was not affected. If these numbers are a valid indicator, the public can be hopeful for a reduction in recently surging food inflation which broke 30% in some regions earlier this year. On average to date the current annual inflation rate is 24% for 2021 and under the PF government inflation averaged at 14% over 6 years.
In the history of finance ministers there is no person who has overseen higher levels of economic growth since the dawn of our democracy. From 2008 – 2011 the country experienced an average annual growth rate of 7.8%. The exchange remained stable averaging K4,900 ZMK (K4.9 ZMW, rebased) to the dollar and the country was able to service international debt. During his first term Zambia was tasked with dealing with the souring relations after the Netherlands and Sweden froze $33 million in aid following a theft of $2 million from the Ministry of Health. Musokotwane was able to substantially improve the situation for the country, as a quote from a 2010 IMF visit stated “Macroeconomic policy implementation has contributed to strong economic performance”, noting a strong policy on Copper Exports and improved financial sector conditions as key influencers of the countries performance. That year Zambia beat the IMF growth prediction of 6.6% and hit an all time record 10.3% GDP growth.
Dr Musokotwane is the father of Mwiya Musokotwane, Zambia’s first Forbes 30 under 30 honoree and his co-ceo at Thebe Investments, an investment firm responsible for the $1.5 billion city development Nkwashi estate. Dr Musokowane is listed on the Thebe’s website as the original owner of the 3,100 Km land which he first purchased in 1988 for the purpose of Agribusiness. According to Thebe, Nkwashi is the largest private development in Zambia and is among the 20 largest real estate property developments in Africa. This includes over 9400 residential properties and the capacity for 7000 apartments. Last year the concluded the development of one of the largest privately man made lakes in the country. Thebe also has investments in Class Guru an online schooling application which aims to reinvent the modern methods of teaching with a free social learning platform.
The public reaction to the appointment has been positive, however some critics on social media are contesting due to his previous role within the MMD government. However, on deeper examination this writer finds Dr Musokotwane proved to be an economy fixer for the MMD government as he could be for the UPND. His strong reputation and history of dealing with the IMF leaves the new minister of finance standing out as the most qualified and suitable selection, as we prepare for negotiations over the coming month. Further, with a strong economic plan, the country could find itself once again in the perfect position to take full advantage of increasing copper prices and a fast growing manufacturing sector.