By HLUPEKILE NKUNIKA –
AT independence, Zambia claimed a domestic and foreign output of approximately US$432. With copper mining as its mainstay, the country was one of the most prosperous on the African continent.
Zambia recorded high copper production at this time as copper prices were high and Government was able to maximise its revenue base. Copper mining contributed 90 per cent to the Gross National Domestic Income.
This led to increased Government revenue leading to enhanced developmental programmes with infrastructure receiving a fair share.
Government took over the running of companies that were privately owned placing them under its control through the nationalisation programme.
However, the decline in the copper prices in 1974 led to a drop in the economy as Government expenditure was reduced and the country was not able to import goods especially the inputs in manufacturing. It was at this time that the country’s economy began to decline.
High monopoly commodity prices, reliance on Government subsidies and lack of technological dynamism contributed to decline in the economy.
Successive Governments tried to resuscitate the economy by privatising Government owned firms and introducing the Structural Adjustment Programme (SAP) but the economy of the country dwindled even further.
The standards of living went down as poverty levels increased and about 80 per cent of the total population lived below the poverty datum line.
By 2011, the country’s Gross National Income (GNI) which stood at US$423 in 1964 rose to US$1,452.
Efforts to enhance agriculture as an alternative to over dependency on copper mining were made with Government providing subsidies for the production of maize under the then Farmer input Support Programme (FSP).
Though, the move contributed to the increased production of the staple food, there were growing concerns that the subsidies were not adequate and that it did not contribute much to the economy as most of it was meant for household food security.
Some critics argued that the programme did not empower the local people as markets for the produce were not favourable and disadvantaged the farmers, who spent a lot of money to ferry their produce to markets and waited weeks in most cases months to be paid by the major buyer, the Food reserve Agency (FRA).
Others stressed the need to diversify crop production by including cash crops on Government’s Farmer Input Support Programme (FISP).
Though the country has some of the best natural resources in the world, its tourism potential was not fully exploited due poor road infrastructure, inadequate air transport and poor service delivery which did not meet international standards in most cases among others.
When the PF Government took over power in 2011, it had a task of resuscitating the economy which had become unstable due to the changing copper prices, lack of industries, poor marketing of the tourism products and high unemployment levels among others.
Infrastructure development was top on its agenda and the road sector took centre stage with the Link Zambia 8000 and Pave Zambia 2000 being the major road projects in the country.
This was to see the country being land linked and rural areas where accessibility was a challenge also received a facelift making transportation of goods and services easier.
However, about 60 per cent of the total population of 14 million still lived in abject poverty as unemployment levels remained high at 50 per cent.
These are developmental concerns by President Edgar Lungu whose vision is to fight poverty in order for Zambia to become a middle income country.
The Head of state made it clear during his inauguration that he wanted to reduce poverty by addressing the developmental needs of the people by 2040.
President Lungu, who recently took a working holiday at the confines of one of the world’s best tourism sanctuaries, the South Luangwa National Park, in Mfuwe of Mambwe District, stressed the need for concerted efforts as the country moves towards prosperity.
It is for this reason that the Head of state agreed to take time to a meeting with officials from the Zambia Institute of Engineers (ZIE) who had a proposal on how Zambia could become a middle income country.
ZIE presented a proposal on how Zambia could become a middle income country by the year 2040 dubbed “National Transformation Strategy for Zambia from 2015-2040.”
ZIE chairperson Bernard Chiwala, who presented the proposal on behalf of the engineers, said there was need to consider mechanisation in the agriculture sector, value addition especially in the mining sector and industrialisation as areas that could lead the country to being a fully developed and industrialised country.
Mr Chiwala noted that once fully mechanised, the agriculture sector could improve household security and agro exports which would in the long run, reduce the cost of production by 40.5 per cent and increase profits.
He presented an agriculture mechanisation plan, irrigation plan and self-sustaining broad financing mechanism drawing lessons from the Singapore model which in 35 years, moved from third world to first world.
“Government spends approximately K1 trillion on Farmer input Support Programme (FISP) but the production levels did not tally with the amount spent on the programme, with mechanisation, the country could increase yields from the current 3.4 million to 34 million tonnes in one season.” he said.
He stated that the country would have 3.4 million tonnes for use locally and would be able to export the 30 million tonnes which can bring US$7 billion.
Mr Chiwala stated that the Constituency Development Fund (CDF) could be used to improve the sector.
He stated that the road sector was also vital to the development and proposed that Government reintroduces road levy saying revenue from the road levy should not be under the Zambia Revenue Authority (ZRA) saying there should be a separate account and that all monies collected as road levy should be spent on improving the road sector.
Mr Chiwala stressed the need to maximise value addition to emeralds, copper, coal and the Mukula tree, saying the country was currently not deriving enough benefits from its natural resources.
Unscrupulous businessmen have been reported to be illegally exploiting in various parts of the country. Mukula logs are currently being smuggled out of the country to Asia where it is believed to be of great economical use in the making of furniture, motor vehicle dash boards, tiles, gun butts and other materials of high value.
He said iron ore can be used to improve industrialisation in the country.
President Lungu observed that the Government may not have adequate resources and called for the enhancement of private sector participation in the implementation of developmental plans as Government alone could not meet all the needs of the country.
President Lungu said that the road to prosperity required concerted efforts.
He said the private sector could contribute effectively by supplementing Government efforts and that those with ideas on how to move the country forward should sell them to both Government and the private sector.
“Though I fully support the initiative, there’s need to sale it to colleagues in parliament, so I will present it to a full cabinet to deliberate, and seek the way forward. Others need to be involved because when it comes from me, some will think that its mere politics. We need to work together because, I can’t do it alone but together, we can achieve a lot,” he said.
He stated that there was need to discuss the pros and cons and seek the way forward as Zambia sets to achieve its developmental goals.
The Head of State observed that some of the issues raised in the proposal could have an impact on the general welfare of the people.
He said that Government had a future to build and that there was need to look around and see how tourism and other key sectors could be improved to enhance economic growth. – ZANIS