Connect with us

Business

Zambia’s economy stagnates, poverty on rise despite human development gains – CSPR

Published

on

107 Views

Zambia’s economy has stagnated over the past decade, with GDP failing to surpass the 2013 level of US$28 billion, according to economist Trevor Hambayi.
Hambayi who was presenting, Zambia’s economic trajectory and human development study on behalf of Civil Society for Poverty Reduction (CSPR) shared that last year, the GDP reached US$29 billion surpassing the stagnation period but dropped to US$26 billion this year due to drought and power deficits.
Speaking at the CSPR and Economics Association of Zambia organised public forum on Friday, themed “Is Zambia’s Economic Development Model Truly Inclusive?” Hambayi attributed the economic stagnation to several factors, including high debt levels, volatile exchange rates, and ineffective policies.
He highlighted the depreciation of the Kwacha by 366 percent over the past ten years, averaging a 40 percent annual depreciation from K6 to K28.
Hambayi stated that this, coupled with tight monetary policy aimed at controlling inflation, has stifled private sector investment.
“Since 2015 to 2016 we have been driving the policy around the monitory policy rate to drive a single digit inflation rate. Having to do this we have also been taking away our liquidity from the market to keep down the inflation rate,” he shared.
Hambayi said removing liquidity from the market is taking away resources that are required for the private sector to invest therefore called for the double digit approach.
“The double digit approach is the only thing that will address the challenges that the country is facing, which is unemployment, poverty, High Cost of living. In terms of the high cost of living living. The only way we can deal with it, is that we need to put more money in your hands,” said Hambayi.
While the Human Development Index (HDI) has shown modest improvement, with life expectancy increasing from 48.5 years to 63.9 years and education levels rising, poverty has increased by 1.25 percent annually since 2015.
“At the current trajectory, poverty levels could reach 68 percent by 2030,” Hambayi warned.
He emphasised the need for a GDP growth rate of 5.6 percent to prevent the rise in poverty and stressed the importance of domestic investment, particularly from SMEs, to drive economic growth.
The economist shared that looking at history, during Zambia’s best economic period between 2004-2014, where economic growth was above seven percent, the country did not reduce poverty and didn’t create equality because the economy was driven by foreign entities.
“All the resources [generated from 2004-2014] were externalised. When you look at this country we have got 240 multinational companies that contribute 62 percent to our GDP. So when we measure the GDP, we measure what has happened to those 240 companies,” Hambayi added.
He therefore called for the country to focus on domestic investments highlighting that 3.7 million small-scale farmers in the agriculture sector remain largely untapped and SMEs lack adequate empowerment.
The CSPR recommended an “economic constitution” to guide long-term economic planning and a shift towards a double-digit GDP growth strategy to address unemployment, poverty, and the high cost of living.
They organisation also called for improved debt management, increased resilience to external shocks, and a focus on domestic investments to drive sustainable economic development.
Civil Society for Poverty Reduction executive director Isabel Mukelebai disclosed that Hambayi’s presentation was derived from a study conducted by the organisation to be launched early January, next year.
The study aims to comprehensively assess poverty reduction in the country by examining Human Development Index, Gender Inequality Index, and data from the Demographic Health Survey as well as the traditional economic indicators like GDP, per capita income, and inflation rates.
“Despite reforms to our economic and social development policies over the decade or so, pro-poor growth still remains elusive. Achieving growth that is able to carry along the poor and include the masses in economic participation has remained challenging…,” Mukelebai said.
“To fully realise reduced poverty rates, the government must interrogate its current economic growth model against current human development indicators and assess whether Zambia’s current trajectory will deliver economic growth with development gains.”
Meanwhile, the Minister of Finance and National Planning Dr Situmbeko Musokotwane reaffirmed Government’s commitment to fostering an inclusive and equitable economic model.
Dr Musokotwane said through a speech read on his behalf by the acting permanent secretary for planning and administration, Prudence Kaoma that the rising food inflation, currently at 16.5 percent, and the escalating cost of living have deepened socioeconomic disparities.
He said this has compelled Government to explore how it can ensure benefits of economic growth are equitably distributed and that every Zambian has the opportunity to thrive.
Meanwhile, Economics Association of Zambia shared some recommendations stemming from the public forum to act as a roadmap for sustainable and inclusive economic development while also addressing poverty at its roots.
The recommendations include; strengthening pro-poor economic policies, diversifying the economy, reforming the taxation system to ensure equity by increasing the tax base while reducing burdens on low-income groups, expansion of access to affordable credit for SMEs, women, and youth entrepreneurs to encourage economic participation and strengthen governance and transparency.
Mungule added that the country must also focus on capacity building and skills development, Invest in rural development, address gender Inequality and ensure that the goals of the Eighth National Development Plan, particularly in poverty reduction and inclusive growth, are actionable and monitored through measurable milestones.
He also recommended the strengthening of collaboration among government, civil society, private sector, and development partners in addressing poverty.
By Moses Makwaya
Kalemba December 29, 2024



Stay informed, entertained, and inspired. Kalemba is your go-to source for authentic Zambian news, culture, and lifestyle. Discover the stories that matter, told with passion and insight.

© Kalemba News

source

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

We have restored the mining sector to what it was in the 80s – Hichilema

Published

on

44 Views

PRESIDENT Hakainde Hichilema has expressed confidence in his administration for largely bringing back the mining sector to what it was in the 1980s, when it was mostly successful and stronger.
Speaking at the Presidential Annual Greetings of the diplomatic corps in Lusaka yesterday, President Hichilema stated that the mines were drastically down when the UPND government took office but they are now restored back to life and highly contributing to the growth of the economy.
“All the old mines are back including those that had shut down for 46 years. Kalengwa mine was shut for 46 years. Thank you for the British investors that are going back to the Kalengwa mine. Chinese ambassador thank you for Luanshya Mine, for 23 years. In fact [at] Kalengwa, all the presidents before me left it closed, [since] President Kaunda, and so it was a delight to be in Kalengwa.”
“Luanshya Mine and its investment and dewatering are fantastic to us. Restoring First Quantum, Lumwana mine, Mopani mine, Abhu Dhabi team. I also want to thank those who have helped us following the trips we made into EU, US, China, one of the projects we are proud of is Ming’omba. Out of the trips, conversations [went] very rapidly. Now we have probably the richest mine in our country,” said President Hichilema.
He added that the country has so far proceeded with exploration in geo physical mapping around the country and the indications given early are promising.
Meanwhile, the Head of State announced that the country’s agriculture sector would have been reasonably restored if there was no drought.
President Hichilema said the country will now pay particular attention to gravitate agriculture into one that will produce the minimum quantity of food that the country needs for both human and animal consumption.
“We hope the rains don’t stop before end of March so we restore our agriculture sector but there’s still a lot to rebuild what we lost during the worst drought in living memory. The drought hammered us in 2024. We will have reasonably restored our agriculture sector. It brought about food and enegy insecurity and the economy down.”
“One of my fears was us having a decline in economy. Going to 2025, the president is going to pay particular attention to gravitate agriculture to produce the minimum quantity of food that we need for our human and animal consumption. And we are still endowed with water. If we had focused on irrigation agriculture some ten years ago, one, two years of drought, we would still have enough food. So we want to be in that position in two years from now very ambitious,” said the President.
He reiterated that the target for maize still stands at 10 million tonnes in order to make Zambia a bread basket for the region.
“We want to produce 10 tonnes per hectare. We want joint investments in agriculture. This is an opportunity not a challenge. This year we will put much effort. Africa is a continent of young people and we want to create jobs for them, we need to expand the economy,” explained President Hichilema.
By Catherine Pule
Kalemba, January 24, 2025



Stay informed, entertained, and inspired. Kalemba is your go-to source for authentic Zambian news, culture, and lifestyle. Discover the stories that matter, told with passion and insight.

© Kalemba News

source

Continue Reading

Business

Ministry of Agriculture urges farmers to report army worm infestations

Published

on

207 Views

THE Ministry of Agriculture has encouraged farmers across the country to report any army worm infestations to their camp extension officers.
Agriculture minister Reuben Mtolo stated the ministry procured and distributed 55,000 litres of low risk Fall Army Worm chemicals to all the 10 Provinces of the country for strategic purposes which will be given out to every affected farmer for free.
Mtolo said the rapid intervention is essential to suppress pest populations, protect crops and mitigate further damage.
The minister urged state holders at every level to work together to ensure a coordinated, efficient and effective response.
He assured the public of government’s unwavering commitment to mitigating the threat of army worms by providing resources to all the affected farmers.
“The Ministry of Agriculture wishes to inform the nation and farmers that it has initiated urgent and decisive measures aimed at combating the widespread infestation of Fall Army Worms that is threatening Zambia’s food security,” stated Mtolo.
“As a Ministry mandated to facilitate the development of a sustainable and diversified agricultural sector for enhanced food and nutrition security, and income generation, we are aware that the Fall Army Worm infestations which have been reported in all the provinces, can have a devastating effect on the national food security.”
“To safeguard the livelihoods of farmers and ensure the nation’s food security, the Ministry is rolling out a comprehensive Response Plan designed for effective and rapid action.”
By Catherine Pule
Kalemba, January 4, 2025



Stay informed, entertained, and inspired. Kalemba is your go-to source for authentic Zambian news, culture, and lifestyle. Discover the stories that matter, told with passion and insight.

© Kalemba News

source

Continue Reading

Business

Ministry of Labour urges employers to submit labour statistics

Published

on

254 Views

THE Ministry of Labour and Social Security has called on all employers to submit employment relationship statistics, warning that failure to comply will attract penalties.
In a statement issued by the Ministry of Labour Principle Public Relations Officer, Mwaka Ndawa, Labour Commissioner Givens Muntengwa emphasised that it is a legal obligation for employers to provide labour statistics under the Employment Code Act No. 3 of 2019.
Muntengwa stated that the labour statistics are important in improving employment conditions as they can enable the ministry to track labour market trends and make informed policy interventions.
He said the labour laws require employers to submit and maintain accurate statistics on employment relationships.
Meanwhile, Muntengwa expressed concern that some employers have failed to comply with these requirements, impeding the Ministry’s ability to maintain an updated administrative database.
This, he noted, impends the ministry’s efforts to address key labour market challenges effectively.
“Employers who fail to comply with the legal requirements risk facing sanctions under Sections 12(3), 133(1), and 135 of the Act,” Muntengwa explained.
However, to meet their obligations, employers are required to submit hard copies of employment statistics to the Labour Commissioner’s office or via post.
“Soft copies by email to [email protected] and copied to Assistant Labour Commissioner Mrs. Mukamasole M. Kasanda at [email protected],” he stated.
Muntengwa also reiterated the requirement for wages to be paid in Zambian Kwacha, in line with Section 67(1) of the Employment Code Act.
“While employees may choose their preferred mode of payment such as postal order, money order, cheque, or electronic payment, wages must be denominated in the national currency.”
“The law is clear wages shall be paid in Kwacha. Non-compliance will attract necessary sanctions,” added Muntengwa.
By Buumba Mwitumwa
Kalemba January 3, 2025


source

Continue Reading

Trending

Copyright © 2024 an24.africa