ZAMBIA will achieve the projected growth of eight per cent in 2010 because of increased investment inflows as global economies recover, Commerce, Trade and Industry Minister Felix Mutati has said.
Mr Mutati said foreign direct investment (FDI) inflows increased to $1.3 billion in the first quarter of 2010 compared with the $195 million that the country recorded during the same period in 2009 and the figure was way above the $1 billion the Government projected for the whole of this year.
Mr Mutati said Zambia would attain the Gross Domestic Product (GDP) growth by the end of this year because the country had recorded significant investments in the areas of mining, construction and agriculture.
Mr Mutati said the accessing of $6.5 billion from the China Development Bank (CBD), $50 million investment in the agriculture sector and other huge inflows from China were serious indicators that Zambia would achieve the growth rate of eight per cent.
“We have seen growth in the construction industry coupled with five million euros (K30 billion) pumped in by the European Commission for agriculture and this gives us confidence that the eight per cent growth is going to be achieved by the end of this year,” the minister said.
On inflation projections, Mr Mutati said the major driver of inflation was fuel but as the country got into the harvest of maize and other crops, food prices would begin to go down.
“The major driver of inflation is fuel as we start harvesting and, as the crops flood the market, we will begin to see prices of food going down because 60 per cent of the content in inflation is actually food-related and we will be in a position to achieve a much lower inflation rate”, he said.
Meanwhile, the Zambian and Tanzania governments are next week expected to sign a development agreement to facilitate the upgrading of the Nakonde and Tunduma border posts.
Mr Mutati said signing the development agreement would make it possible for the two countries to embark on the construction of infrastructure to make the facility a one-stop border post.
Mr Mutati said the development of the one-stop border post would make it easy for trade flow between the two countries.
Speaking when visiting Grant Thornton chief executive officer, Edward Nusbaum called on him at his office in Lusaka yesterday, Mr Mutati said the development of border infrastructure would not only support economic growth but also boost trade relations between the two nations.
Mr Mutati said once the Sixth National Development Plan (SNDP) and Credit Rating were finalised, it would enable Zambia upgrade from Least Developed Country (LDCs) to a Developing Country, which would help to attract more investors as most investors looked for an economy that was developing.
He said the SNDP would outline the developmental programmes that would be undertaken to eliminate poverty and enable Zambia become a non–LDC country to raise the investor perception profile.
“The SNDP is part of the ingredient that is going to boost economic growth. It is important that we move from being LDC to a developing country and that way, we can be able to create more investor confidence,” he said.
And Mr Nusbaum pledged to support Zambia on corporate governance issues.
He said within 12 months, Grant Thornton would organise a conference on corporate governance in Lusaka.
[Times of Zambia]
The 3Es are in-charge. Economists in Nkwazi House, Economists at BOZ and Economists at MoFNP. Steadly in a Synchronizing mode stirring the economic ship ashore with certainity.Better the devil you know than the devil of utopia you don’t.
Bravo RB!
This is just nonsense! How can you forescast economic growth rates when you dont even know the base from which you are growing. Has the Ministry of Finance, BOZ or CSOZ told us as to what the GDP of Zambia was as at 31 December 2009? Second, can Mutati tell us the growth figures for the first quarter of 2008. Why dont these people ever tell us what Zambia’s GDP is? How do you measure growth figures without knowing the GDP? Please can someone direct me to an official Zambian govt source where the GDP is indicated? Dont give me IMF,World Bank or CIA sources. I want an official govt source.
That’s the way to be.Always optimistic!!
Tiger status! That will be the highest growth rate since independence.
# 2 Mbulawa
that is a valid demand, not outright condemnations and insults presented by some erratic drugged pact supporters on LT. I am sure someone with the know how will direct you. Zambia is moving forward, get on board and lets develop our country, of course unless you are one of the spetacular array of petty crooks and dope pushers hanging on to PFs disintegrating tail coats hoping for a job in satas GRZ, you will not agree with me. abaleya bane.
From what I know, Zambia’s GDP was at 6.3% for the year 2009 according to the CSO bulletin for the month of December which can be accessed online for free.
I have not seen any quarterly figures. Obtaining 8% growth or higher would surely be great for the nation. It would indicate that Zambia is on the right path.
#2
Zambia’s GDP in 2008 was $14.3 billion and if it grew by 6% by 2009 and 8% projection in 2010 we are on $16.4 billion. This means that the GDP per person is $126 compared with Tanzania $55, Angola $528, RSA $645, Botwana $79 Malawi $33 all things being equal. With this growth all we need is tight discipline with tough sanctions for wrong doers – RDA. This can raise the standard of living of man poverty stricken Zambians.
#2
Zambia’s GDP in 2008 was $14.3 billion and if it grew by 6% by 2009 and 8% projection in 2010 we are on $16.4 billion. This means that the GDP per person is $126 compared with Tanzania $55, Angola $528, RSA $645, Botwana $79 Malawi $33 all things being equal. With this growth all we need is tight discipline with tough sanctions for wrong doers – RDA. This can raise the standard of living of many poverty stricken Zambians.
# 1 Your 3Es are a pure waste of of resources. Just yesterday you VETERAN were on Mrs Mwanawasa saying she is bad for complaining about the $1,000.00 she gets whislt MOST Zambians leave on less than a Dollar/day. So ba bwana stop your nonsence,we have heard about this GROWTH for some time now but what have you got to show us? NOTHING. And from my understanding most of the guys you praise so much are your age mate but from the look of things you are just one ‘educated’ failure. Zambia would be a better place if we didnt people like you!!!
I will say it again – with a privatised and foreign owned mining sector, using GDP to reflect economic growth is mere tricker, because at least $2.5 billion of that is are mining company profits, money that is taken directly out of the Zambian economy as soon as it is made.
Let’s show *GNP minus remittances*, and then we can see whether the ZAMBIAN economy grew, not whether the robbing of the Zambian people and Zambian resources by foreign mining companies grew.
Thanks Mr K. You sound like someone we can listen to not some of these guys who always say things in a hallucinatory fashion without any tangible artifacts.
Most of the GDP growth projections are in mineral resources which are exported and the money never comes back. No wonder you can brag about Zambia having a better GDP than Malawi and Tanzania or Uganda, Kenya but the quality of life of a common man in Tanzania or Malawi is like 10 times more than a common Zambian. In every City/District in Tanzania, Kenya, Uganda there is a University or University College now people are studying, getting degree. There policies are for every school leaver to have a place in University. While you are still quarreling over who has a degree and who doesn’t.
Yes there is growth but as longer as all the profits from that growth ends in China, then you will eat figures. Before you realize the copper prices fall and the investors are running away. Open your…