Bank of Zambia (BOZ) Head of Public Relations Kanguya Mayondi says indicators show that there is steady growth in the Zambian economy.
Mr. Mayondi told ZANIS in an interview in Kitwe today that the Zambian economy was certainly growing though it may not grow at the rate that is anticipated.
He attributed the economic crisis prevailing in the Eurozone as one of the factors that have contributed to the slow pace at which the economy is growing.
Mr. Mayondi explained that many European countries are spending money trying to bail out Greece resulting into reduced foreign direct investment inflows into developing countries such as Zambia.
He however said the country is expected to attain a 6.8% growth in the economy by the end of the year.
Mr. Mayondi expressed delight that the inflation rate in Zambia is at 9.1% compared to other African countries whose rate stood at about 12%.
He also said it will be good and beneficial to the Zambian people, if the inflation rate reduced further.
“Comparatively with other African countries, Zambia stands out in terms of the inflation rate which is at 9.1% when others are at 12%.But we would want it to be lower than this “Mr. Mayondi said.
He urged Government to strive to attain stability of the economy so as to attract more Foreign Direct Investment (FDIs).
ZANIS
@-) hope it’s true
Almost every country is having a boom except greece, so we should even do better than we are doing now if we didnt depend so much on foreign investment. The excuse that the reason we are not doing well is because of the crisis in Europe does not cut it for me , last time ichecked china, india were the biggest direct investors in zambia
Whatever “steadily growing” means, only BOZ knows!!!!!!!!!!
Yeah, the economy is growing, but it is leaving the people behind!!!
First njupusheko, what is the job of the central bank in this country? Are they just there to speculate about inflation and economic growth? Or maybe to print ma Kwacha and keep ma dollar. I have never heard them talk about expecting lower interest rates by the end of the year. We all know that oil prices have huge impact on the inflation, and copper prices and foreign investments on foreign exchange. Anyone can speculate on inflation and foreign exchange. We all now that copper prices and oil prices have a huge impact + and – on the Zambian economy.
#5 YOU ARE RIGHT BOZ MUST PUSH THE BANKS TO BRING DOWN THE INTEREST RATES,WHILE IT IS TRUE THAT OUR INFLATION RATE OF 9.1 % IS VERY GOOD COMPARABLE TO OTHER AFRICAN COUNTRIES IT IS VERY SAD TO NOTE THAT OUR INTEREST RATES ARE AMONG THE HIGHEST IN THE WORLD WHICH IS NOT GOOD FOR SMEs TO BORROW AND GROW .SMEs MAKE ECONOMIES TO GROW NOT BIG COMPANIES.THE BANKS MUST DESIST FROM MAKING MONEY FROM THE CUSTOMERS MONEY BY LENDING IT OUT AT HIGH FEES IN TERMS OF INTEREST RATES BUT SHOULD BE ABLE TO MAKE MONEY BY INTRODUCING OTHER PRODUCTS TO THE CUSTOMERS.BANKS IN ZAMBIA ARE OUT OF REACH FOR MAJORITY OF ZAMBIANS BCOZ THEY ARE NOT USER FRIENDLY THIS TREND MUST CHARGE.
#4 and 5. The bank of Zambia has been consistenly trying to reduce the interest rates but because this is a private sector economy, the banks can not be compelled. One of the things that the central bank did was to reduce the statutory reserves ratios. As for their objectives I ould advise you ba Zambia @4 to visit their website.
Good day and God bless
#7, Positivist pa Zed The Bank of England, the US Federal Reserve, the Bank of Ghana. South African Reserve Bank and the Bank of Botswana and many more central Banks in civilised capitalist countries set interest rates every quota. The Bank of Zambia would do the same unfortunately in Zambia we dont have a civilised capitalist system but robber capitalism in which anyone can do whatever they like. Central banks control interest rates by setting the base rate. It is not the work nor the role of the central bank to tell us about economic growth rates or how much copper has been produced their job is to manage monetary policy i.e control money supply, inflation and interest rates. If they cant do this disband the damn BOZ and start using foreign currency like what the Zimbabweans are doing.
Actually what they set ( i.e. the central banks) are their lending rates and not the rates at which the private banks will be lending at. It is type of intervention aimed at influencing and not determining the interest rates. The bank of Zambia does not do this but they try to influence by seeting a rate for tresury bills. I agree that the Bank of Zambia seems to talk about a wider range of economic issues but then probably they have set they have a different mandate from their colleagues
And when you critically look at it the economic growth rates , export volumes etc are relate to the elements of monetary value that you mentioned namely inflation, interest rates,money supply etc
Any increase in the Economy must reflect on all key success factors
We need to see the same increase on Employment
on Infrastructure, Eductaion, Agriculture etc an present this is not even addressing the abject poverty our people are going through…
please do not cheat the poor people with such figures, they are meaningless to say the least
Voice of the poor @ 10. Unfortunately one area of debate for economists is how to get the benefits of economic growth to impact the required and prioirity areas as you have listed below.
However it is woth mentioning that infrastructure is expanding. Just look at the growth in residentail and commercial properties. Driving out of Lusaka from any direction gives a clear evidence of this. The best evidence could be the Lumwana project and other developments in North Western Province.
In Education, after a freeze in recruitment of teachers, Government is now recruiting an average of 5,000 teachers every year. There are also numerous projects of new schools and expansion of old ones .
Agriculture: We have seen a bumper harvest this year. This has been partly attributed to the
Agriculture: We have seen a bumper harvest this year. This has been partly attributed to the Agriculture surport programme. Though supprisingly poverty is not reducing in rural areas.