ZAMBIA has continued to register economic growth, stability in the policy environment and prudent fiscal management, according to a latest report by Fitch, which is one of the top global economy rating agencies.
Fitch recently elevated aZambia’s economic outlook from stable to positive, stating that over the last one year, Africa’s second top producer of copper had made positive strides on growth through fiscal discipline and commitment to expenditure restraint.
The announcement by Fitch came barely a few days after the official opening of the Fourth session of the 11th National Assembly at which President Michael Sata also highlighted the country’s achievements growth-wise.
The Head of State did allude that Zambia had posted strong indicators of progress in the political, economic and social spheres, attributing these achievements to the enduring peace, unity and stability that the country has enjoyed for five decades.
Going back 50 years since October 24, 1964, Zambia has indeed seen unprecedented economic transformation that has been achieved through a swift blend of public and private sector cooperation.
The positions by both Fitch and President Sata are justifiable because Zambia has done well in getting the best out of every economic sector and sustaining if not bettering this trend will continue to earn the country increased growth on the economic front.
Government should, however, not be complacent following the news by Fitch as there are still issues that need to be addressed even as the country pursues a growth target of more than seven per cent per annum.
The annual rate of inflation has been trending slightly high at around eight per cent over the last few months and this has resulted in increases to the prices of basic commodities such as fuel, electricity and food.
In line with the medium term expenditure framework (MTEF) 2015-2017, Government should ensure that growth exceeds and stays above the set target to support employment and wealth creation.
The last few months have also witnessed stability in the exchange rate after a turbulent early part of 2014 when the Kwacha depreciated against major currencies such as the United States Dollar and British Pound.
The Bank of Zambia thus needs to continue implementing innovative strategies aimed at maintaining a stable exchange rate and sustainability on the growth trajectory.
There is also need to strengthen measures that will sustain this economic ascendency and ensure that the benefits trickle down to the ordinary Zambian.
The majority of Zambians, at present, do not enjoy these benefits of economic growth beyond employment, which is why it is essential that measures are put in place to change the status quo.
Between 2000 and 2014, the new investors have invested over US$10 billion in the mining industry for exploration, mine and processing facilities development and refurbishment of dilapidated mining and processing facilities.
This has resulted in deepening of mine shafts; extension of open pits, new green field integrated mining projects, construction of modern environmentally friendly processing facilities and opening up of new mining frontiers away from the traditional Copperbelt of Zambia into the North-Western Province.
From these processes, people have benefited greatly in terms of employment but what happens when the jobs are cut due to unforeseen circumstances such as the investor pulling out?
Hence the need for deliberate schemes aimed at human development sothat economic benefits trickle down to the least expected beneficiaries. Government must also come up with a private sector development policy that will promote the participation of Small and Medium Enterprises (SME’s) in the economic growth cycle.
Zambia is witnessing growth in the economy but without the participation of SME’s because such establishments luck access to adequate basic amenities such as funding.
Once this is taken care of, local people will have the capacity to own their own companies and create employment internally and foreigners
will come, seeking employment for Zambians and not the other way round.
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