THE private sector is confident that Zambia’s 6.6 percent economic growth is feasible because of the positive macroeconomic indicators and Government’s prudent policies. The Economics Association of Zambia (EAZ) and the Private Sector Development Association (PSDA) say Zambia is on the right economic track and is likely to surpass the forecast 6.6 percent.
EAZ executive secretary Alexander Chileshe said in an interview that the projected rate of over six percent is attainable because of the positive factors in the economic realm. Mr Chileshe said the country could surpass the projected figure premised on the high copper prices and good crop harvest for the 2009/10 agriculture season.
He said the outlook for the rest of the year is bright but cautioned on managing economic variables and that proceeds from copper should be kept in reserves to mitigate shocks when the prices on the global market are low.
“The outlook is bright. We need to manage inflation and prepare very well for the 2010/11 farming season and ensure that some of the proceeds from copper are put aside as prices on the (international) market always fluctuate. We need to keep prudent resources,” he said.
And PSDA chairman Yusuf Dodia said Zambia can achieve an economic growth of 6.6 percent because in the last two years, the banking sector has nearly doubled in size due to new investors. He said the cost of money is destined to become cheaper as the banking sector competes for customers in Zambia.
He said this will benefit the private sector and provide the much needed capital for growth and new businesses. Mr Dodia said Zambia’s membership to the Common Market for Eastern and Southern Africa (COMESA) is an additional attribute to the growth of the economy.
“Zambia is now a member of the COMESA Customs Union which offers a much larger market of over 200 million people for Zambian exports. The mining industry is also investing quite heavily in production capacity such that the economy is bound to grow exponentially in 2010 and 2011,” he said.
He said the surplus of maize and other grains has provided food security and now opens doors for export to the region with opportunities to introduce food processing investments that will ensure prolonged profitability of our good harvests.
He said, however, that the challenge for Zambia is to extend the good work exemplified by introducing the one-stop-border post at Chirundu to other border points such as Nakonde, Kasumbalesa, and Kazungula.
Meanwhile, Mr Dodia said the role of Government agencies such as the Zambia Bureau of Standards and Zambia Weights and Measures Agency should be re-defined to support and facilitate private sector growth rather than to see the private sector as sources of income through high fees and inspection charges.
[Daily Mail]