. Sata

By PATRICK MWANZA –
IN the last 50 years, Zambia has posted strong indicators of progress in political, economic and social spheres under successive governments that have ruled the country since 1964.
This development has largely been due to the enduring peace, unity and stability the nation has managed to maintain over the years.
On the economic front, Zambia at independence was among the richest countries in sub-Sahara Africa.
Mining particularly copper production has remained the country’s mainstay, contributing about 70 per cent to export earnings. With copper, the country’s major export, enjoying high rates on the market, the country had the necessary resources for development. However, beginning from the mid- seventies, the Zambian economy began to decline.
Copper production dwindled from 709,000 to 609,000 tonnes in 1980.
By 1984 production had hit an all-time low of 551,000 tonnes, translating to a drop of 14.4 per cent of its 1964 level.
Compounded by the reduction in the copper prices and a rise in oil prices in the 1980s, the Zambian economy was seriously weakened.
This propelled the Zambian government under second Republican President Frederick Chiluba to undertake massive economic reforms.
State industries including the huge state conglomerate, Zambia Consolidated Copper Mines (ZCCM) were privatised.
The privatisation process brought the much needed foreign investment in the country.
But most of the companies which were a drain on national resources like Zambia Airways and the United Bus Company of Zambia (UBZ) were liquidated, leaving many people on the streets.
However, the rising copper prices have led to a renewed interest in the Zambian mines
China has become a major investor in the Zambian copper industry, and in February 2007, the two countries announced the creation of a Chinese-Zambian economic partnership zone around the Chambishi copper mine on the Copperbelt.
Today, copper mining is central to the economic prospects for Zambia and covers 85 per cent of all the country’s exports.
In January 2013, the Zambia Environmental Management Agency (ZEMA) approved 27 mining and exploration licences.
Mining has thus continued to play a significant role in the economy as a source of employment, foreign exchange earnings and contribution to the gross domestic product
With regard to copper production, output in 2011 was 667,604 metric tonnes which rose to 697,900 tonnes in 2012.
Copper production in 2013 stood at 765,037 metric tonnes and production is expected to reach one million metric tonnes annually by 2017.
In recognition of the critical role of the mining industry to the prosperity of the country, incumbent President Michael Sata directed the Ministers of Finance and Mines Alexander Chikwanda and Christopher Yaluma to come up with consistent policies that will guarantee transparency and accountability in the declaration of minerals produced and exported.
The President said the nation need to ensure a win-win situation for the nation and mining investors.
He has, however, emphasised the need for economic diversification if the country is to sustain the Growth Domestic Product (GDP).
Zambia’s economic outlook continues to look up.
The recent change in outlook from stable to positive by one of the world’s top three rating agencies Fitch is testimony of the economic milestone the country has continued to achieve over the years.
Fitch recently revised Zambia’s outlook from stable to positive while affirming the country’s ceiling at B+
According to Secretary to the Treasury Fredson Yamba, the new rating is a sign of the confidence the international community has in the way the Zambian Government is managing its economy.
Mr Yamba said Government’s commitment was to improve further in the management of the economy until the investment grade rating was attained.
In line with the goals and objectives articulated in the medium term expenditure framework (MTEF) 2015 to 2017, the Government would ensure that growth exceeded seven per cent per annum in an effort to support employment creation.
“Our Government would, among other things, maintain macro-economic stability to support growth and increase capacity in planning and project implementation by players in the economy.
“The Government is looking forward to engaging Fitch and other stakeholders in pursuing the economic transformation of the country and improving the livelihoods of the Zambian people,” Mr Yamba explained.
Fitch explained that Zambia’s international credit rating has been upgraded as a result of progressive strides the Government has made since October, 2013 when rating and outlook was downgraded
On its part, the Zambian Government has expressed its commitment to continue to foster economic development in order to move the country forward decisively towards the eradication of poverty and under development
Republican President Michael Sata stressed when he recently opened the fourth session of the 11th national assembly that his government is firmly of the view that meaningful economic transformation is fundamental to the collective prosperity of the nation.
“The country has continued to post robust economic growth in excess of six per cent,” President Sata noted.
“Going forward, the focus of our government for now and beyond will be achieving the necessary rates of economic growth and development by addressing issues of higher rates of investment, job creation,
economic restructuring and improved efficiency and productivity, and greater social equity so as to realise the goal of a better Zambia for all,” the President said
The agriculture sector has also played an important role in ensuring food security in the country and the region as a whole and contributing significantly to the country’s development agenda
The sector is the major employer in the country, employing about 70 per cent of the country’s population.
Government’s focus in the agriculture sector is to achieve food security, promote crop diversification, as well as increase productivity and value addition.
“Agriculture remains a key driver of economic growth and poverty reduction. In the crop sub-sector, we continue to register significant growth
This year, we achieved a record maize harvest of 3.4 million tonnes,” President Sata said.
President Sata further explained that the achievement is due to the enabling policies of the government, the hard work of the farmers and the favourable weather conditions the country has continued to receive.
The head of State has assured the nation that government will continue to give priority to national food security by increasing and upgrading storage capacity throughout the country.
“In this regard, our government has invested a total of K108.5 million to upgrade 27 storage sheds with a total storage capacity of 117,000 tonnes.
“Eight of these sheds have been completed whilst 19 will be completed by the end of 2014,” Mr Sata said.
The country has also scored tremendous milestone in attracting Foreign Direct Investment (FDI) for many years now, establishing the nation as one of the most preferred investment destination in the world
During the era of third Republican President Levy Mwanawasa, the fight against corruption was a prominent policy direction that helped the nation to attract foreign direct investment in the country.
Foreign investors liked Dr Mwanawasa because of his anti-corruption drive and Zambia received massive foreign investment during his tenure.
Dr Mwanawasa’s policies also helped to lower inflation and spread the benefits therefore to the poor and marginalised persons in society.
Considerable amount of aid and debt relief also came Zambia’s way during that time mainly due to liberalisation.
This trend has continued with the governments that followed after.
For instance, in the last three years, the country attracted a total of US$5.2 Billion in FDI.
President Sata stressed that Government remains keen to raise the rate of investment in the economy and continue to further improve the business environment in an effort to continue attracting more
investments into the country
He said these statistics are a clear indication that the country still remains an attractive investment destination.
The country also made significant progress in export diversification.
Non-traditional exports currently account for 33 per cent of total export earnings from 20.9 per cent in 2011.
And Zambia’s Economic performance in the medium term is expected to remain strong and Real GDP growth is projected to increase to 7.1 per cent and 7.4 per cent in 2014 and 2015, respectively.
However, many stakeholders have noted with regret that the massive economic growth the country has achieved over the years has not trickled down to the common man on the ground
They noted that poverty levels still remain high as the prices of goods and services have continued to skyrocket.
Economist Oliver Saasa appealed to government to ensure that the much talked about economic boom impacts positively on the lives of the citizenry especially those in rural areas.
Professor Saasa notes that 60 per cent of the population still lives below the poverty line and 42 per cent are considered to be in extreme poverty.
“Moreover, the absolute number of poor people increased from about six million in 1991 to 7.9 million in 2010, primarily due to population growth,” Prof. Saasa stated.
The Prominent Economist however, says the country’s economy has performed above average and that all the economic indicators have posted positive gains and all is looking bright.
He cited the price of copper which has remained fairly high, the boom in the agriculture sector and the continued conducive investment climate as being behind the positive economic performance the country has achieved over the years.
Politically, Zambia has also managed to post a positive good governance record in the 50 years of its existence which many observers both local and international has hailed as one of the best in the world.
Zambia remains a beacon to many African countries owing to the stable political environment and the way it has managed its politics.
Since 1964 when Zambia got independent, the country has experienced five successful multi-party elections since the return to multi-party politics in 1991.
The latest elections in September, 2011 were peaceful and there were a peaceful handover of power which further strengthened Zambia’s democratic credentials
Veteran Politician and freedom fighter, Grey Zulu, attributed the stable political climate the country continues to enjoy to the work of the country’s forefathers who preached peace and unity in the country.
Mr Zulu who recently turned 90 urged Zambians to reflect on the work of those who sacrificed to liberate the country from the colonial yoke even when they celebrate 50 years of independence.
He said doing so will scupper any thoughts of division among the people as the cost for freedom came at a huge price.
Mr Zulu urged Zambians to continue loving each other and working towards preserving and maintaining the peace the country has now known for 50 years.
The current generation and its leaders has defined its own development agenda through its Vision 2030 and the Sixth National Development Plan (SNDP) which has recently been revised.
The Plan is organised around the theme of “broad based wealth and job creation through citizen participation and technological advancement.”
Specific development goals include promoting inclusive growth, fostering a competitive and outward-oriented economy, significantly reducing hunger and poverty, and reaching the middle income status.
Accelerating growth and reducing poverty will necessitate increasing the competitiveness of the Zambian economy by reducing the cost of doing business and ensuring that the rural economy, upon which much of the population depends for its livelihood, contributes meaningfully to overall growth. — ZANIS