The World Bank has projected that Zambia’s economy is expected to grow by 7.3 percent in 2012, slightly higher than the 6.3 percent growth rate of 2011.
The Zambian economy has seen robust growth during 2012 in construction, transport and communication services, manufacturing and agriculture.
The new World Bank report titled, “Zambia’s Economic brief: Recent economic developments and the state of basic Human opportunities for children” notes that Zambia’s growth performance in 2012 has had been positive.
Speaking in Lusaka this morning during the launch of the report, World Bank country Director Kundhavi Kadiresan said the medium term economic prospects for Zambia have remained high even though the country continues to be dependent highly on mineral prices.
Ms. Kundhavi says despite strong economic growth in Zambia in the last decade, there has been very little progress in reducing the high levels of poverty.
And Finance Minister Alexander Chikwanda says government welcomes the reflections in the report as they will provide an avenue for the country to tap into the World Bank’s experience from its global reach.
In a speech read for him by his deputy Miles Sampa, Mr. Chikwanda says the analysis in the report can help the current administration to focus on core issues hampering poverty reduction and inequality.
QFM
What difference does it make anyway? Sata & his Pathetic Fimofimo hasn’t cleaned the streets, and rain season is here, we fear for cholera. All economical growth is going for creating districts.
based on what???
KEEP IT UP PF. WE SAW IT COMING.
The 1st time in the history of Zambia to record that growth after the introduction of democracy more than twenty years ago.
@Kajimang, actually Zambia had growth exceeding 7% in 2010. This growth is based on the economic reforms that took place in the 90’s, and more recently the fiscal and monetary discipline that the country has maintained through from 2001 to-date. This sort of economic growth doesn’t happen over night…it takes many years of work. In any case this is good for the country!
Its mostly based on increased copper production. Kansanshi, lumwana , Luanshya and KCM have all recorded a 20% increase in copper production for the first six months of this year. This is where the bulk of the growth is coming from. This is also one of the reasons why there’s no decrease in poverty despite the high economic growth since 2000. People in countries like Kenya, Tanzania and Uganda have a far higher standard of living than Zambians. On a per capita income basis all the three countries are poorer than Zambia. Their per capital incomes are between $500 and $800. Zambia’s is $1400. The difference is the economies of these countries are Agriculture based. The money goes into the pockets of the locals who grow the cash crops. In Zambia money accrues to the corporates!
The only reason zed is at $1400 or higher than the 3 countries is because of smaller population.On a dollar for dollar basis(GDP) these countries churn out far higher wealth than zed which stays locally.Zambia’s wealth goes to foreign corporates.
@Tumbuka Pride. Do you know the meaning of Per Capita? It’s simply the total amount of goods and services produced annually in a Country divided by that country’s population. Last year for example each Zambian produced goods and services worth $1400. Each Kenyan produced the equivalent of $800. A Ugandan and Tanzanian each produced $500. A Namibian $6000. A Motswana produced $9000. Angolan $5500. A South African produced $8000.
these number mean nothing to ordinary Zambians. Until we start to feel it, it remains academic.
@6 thas a smart analysis, countires like Nigerian , India score positively from world bank report but people common people see nothing out of it, so common man jst continue with ur usual life.
FTJ Chiluba’s reforms are bearing fruit. May his soul rest in peace.
@8. Nuke. Chiluba’s sole economic policy was privatization with investors paying next to nothing in taxes!
It is good to score positive economic growth. However, you can not judge the performance of PF based on this 7.7% versus MMD’s growth. The best way is to judge the 7.3% against the potential growth of the country. Supposing we had another party in power, could they not have done above 7.3%? Furthermore, what really matters is whether the citizens have 3 meals a day, can afford decent housing, medical care, education and security. These are the issues!
Economy growth based on other people depleting your assets, is that growth? Ba KK failed to diversify economy away from selling natural resources which can’t be replaced and we are still busy, 50 years later, replicating  a failed system. I don’t know if it is a congenital disease, this apparent stupidity.Â
If my neighbour was making 10k per month off his business skills from his farm or kantemba and i was making 15k off my unskilled labour at a foreign NGO i would be worse off.Any rise in economic fortunes of our 2 entities means my neighbour is better off with his smaller 4.5% growth(he has a wholly owned entity and own skills) than my bigger growth of 7% based on a foreigners skills.That basically sums up the economic situation between zambia and her east african neghbours.Zambia’s bigger economic growth of 7% is in reality not better than a Ugandan whose economy grows at 4.5%.
twisted logic, 15k > 10k on any day last time I checked. Maybe you trying to say 15k made on my farm by some dude renting my land only gives me 5k in rent while 10k on my neighbours farm nets her 10k coz she farms by herself. At this rate of growth, It will take me about 30 years to catch up with my neighbour. On the plus side, my bigger farm will likely employ more people who can shop for Malasha at my farm shop. Still a better proposition
Yes what matters is wether growth goes down to the majority of the people, so we should not celebrate. We should ensure that 70 percent does not go to salaries and party programs as the case is with South Africa which is rapidly going down the drain. One way is infrastructure programmes and adding value to our exports. We are doing fine on roads programme but not on value adding to our exports.
We should celebrate! A bigger economy means increased opportunities, I prefer a bigger cake any day! a bigger cake means the chance to eat a slighlty larger slice even at a proportionally smaller size than a smaller cake. Just choose a proper knife and person to cut and spread out the cake of course not communist style but to the deserving. Imagine going to a party with 5 litres of Chibuku only but there were 5 invitees. Maybe we’ll eachdrink 1 litre each and never get drunk. At another party there’s 100litres, for 20 guests, there are big bouncers and I am not invited. Very soon,guests will get drunk, chiza pwalala and they’ll be a good 3litres for me to consume. mmm, getting it?
FTJ vision at work.
Huh,what economic growth?Most of the gains will go to the foreign mining firms and foreign retailers who’ll make higher profits.The zambian man on the street will just get the crumbs.
the growth is too little