By Dr Richard Mbewe
In the case of Zambia, one of the good consequences is that it has made us seriously look at economic issues facing the country. These are issues like high unemployment, high debt, lack of future economic strategy, lack of export product, virtually non-existence of international trade that is beneficial to our country. To mention but a few.
The fact remains that Zambia will ONLY develop if it can produce other export products than copper. Those products should be coupled with value-addition and innovations that will make Zambia have products that they can export top other countries. However, this is a difficult task for our country to satisfy taking into consideration the country working culture, research culture and approach towards to what is owned by everyone, i.e. the state. The country is riddled with corruption, apathy, laissez faire approach to solving national problems or simply getting things done!
The best way out of this predicament for our country is a two-phase approach:
The first phase is to produce and sell produce that can generate immediate income for the State. The intention is to raise enough income that will help alleviate the country’s immediate social problems: reduce unemployment, generate income for fiscal balancing, act as capital for other income generating projects that will improve the standards of living of the Zambians.
The second approach requires creating Zambian capital based on the positive exploitation of our natural resources. These are both natural and human resources. The activities mentioned above should be strategic in nature. This means that for the first phase, it is necessary that we think strategically based on the current global situation regarding Corona virus. Most of the countries are in lockdown, which means that they do not work or produce anything for that matter. This is the time Zambia should start agricultural activities that are aimed at producing the necessary products that countries will need include our neighboring countries. These are maize, soya, different types of meats: poultry, beef, pork and so on.
The point is for Zambian institutions including ZABS to certify these products as corona virus free. It is this income from the selling of these products that will be used to finance Zambia’s development, for now and in the future. It is important to note that if we believe in the conspiracy theory that China started the corona virus in order to gain global economic domination, and then we as Zambians must just emulate China by starting to produce things we are capable of, based on our capabilities, knowledge and technology. These things will give us a competitive advantage of having products to sell when the World is declared corona-virus-free.
If our business acumen is high enough (in line with Porter’s Diamond), we can generate enough funds that would go a long way in financing debt service, provide capital for investments that are necessary for Zambians and income that can be used to finance economic growth for the second phase of development as described above. Therefore, asking IMF loans or support packages in uncalled for as our country has the capability to finance and sustain its economic growth without external support. This is in line with the economic concept that no country has developed based on foreign aid or foreign debt. Moreover, Zambia will be no exception! Zambia will have to work its way to riches, no shortcuts, please!
Dr Richard Mbewe, MSc., PhD., MBA, is a freelance consultant and lecturer. Previously, he worked as an investment banker, fund manager and lecturer in Poland, Turkey, Syria, Slovenia and Zambia. He specializes in chemical engineering processes, macroeconomics, nation branding, marketing, business case development, business arbitration and corporate strategy. The opinions expressed here, solely represent his opinions and NOT those of entities he co-operates or is associated with.
Kaizar achiba right ati iyo ifyo fyama loan fya IMF tefintu mune. Abaku disapora landeniko tumfwe. Nshaka labe efyo antukila umulumendo waku vyalo uko kwina Ku diasoora
Well when you don’t value anything you end up selling it let go it cheap. If we valued our resources in Africa, Africa would have been the greatest trading continent on the planet but it is not because Africa is an extraction zone that enrich other countries, all that is being left, are large holes, and toxic waste in our air and water and on the land too. Let’s not awake when all our resources have dried up, remember our precious stones are non renewable what has their extraction by westerners done for us so far? We are in debt to the same countries that come for our Gold, diamond and copper, our currencies perform badly with those of the western worlds why? Because they take comparative advantage on us using their superior currencies, but when we turn the tables, that is when Africa…
TRUE…UNFORTUNATELY YOUR IDEAS WILL END ON THIS BLOG BECAUSE THE POWERS THAT BE WILL NOT EVEN READ THIS ARTICLE….SO WE SHALL JUST GO BACK TO IMF….
And no country has ever been developed by foreigners. Go to China and see if Zambians have any industries to develop China. Go to India and see if Zambians have any industries to develop India, Go anywhere England, US, Japan etc and see if Zambians have any industries to develop such countries. All I see in Zambia is blind leadership eulogizing foreigners who set up industries which financial institutions in Zambia are supposed to help indigenous Zambians to set up and develop their own country. Who cursed us kanshi? You go to Banks in Zambia with a viable, brilliant and fact backed business plan to set up a manufacturing industry, they will subject you stupid conditions that are as good as asking you to resurrect your great grand parents before you can qualify for their stupid yet never…
Zambian budgets have always had a deficit that is expected to be covered by well wishers. We need to move past this kind of national budget and thinking if we truly have to flex our muscles and develop. Africans must learn to work within their means and not expect others to chip in in our national budgets that makes us beggars. If our budget says we require 10 trillion but we as a nation can only raise revenue to the amount of 8 trillion then we must restructure the budget to 8 trillion from 10, gradually as we will keep increasing the budget from one year to the next based on our performances, this way we will learn to value our resources and channel them to what really matters.
You go to Banks in Zambia with a viable, brilliant and fact backed business plan to set up a manufacturing industry, they will subject you to stupid conditions that are as good as asking you to resurrect your great grand parents before you can qualify for their stupid yet never disbursed loans.
The western worlds found another way to colonialise Africa through debt and aid. These things have made the white man untouchable. “Teach a man to fish and he will feed for the rest of his life but give him a fish and he will only feed for a day ” the western worlds simply give Africa fish through jobs. Most Africans own jobs which are temporal and not permanent investments or undertakings that add value to their countries and economies. We need more men like aliko dangote in Africa. in short all profits must stay in Africa from any economic activity on the continent. We work for people that keep stealing our valuable resources for peanuts that is a shame on us all.
Nice comments above. Brethren you see Africa will develop when they shift focus from praying for jobs and begin owning valuable investments. All we do is pray for jobs all the time, why can’t we think above those limitations we set for ourselves? There are myriads of opportunities in Africa that we can take advantage of in order truly develop. We need to switch from these get rich quick schemes, deliver quality when given an opportunity and not shody works because we want to pocket more than our estimated profit. The shody work Africans do don’t add any value because later on that shody work will require more resources to repair instead of those resources going elsewhere for other development projects.
Too many self righteousness thinkers in Zambia not enough doers.
@ Rowdy….walasa man.
Blaming Caucasians /foreigners when infact the enemy is our own brothers and sisters.who are the thieves in Zambia and who plays a game of rule and divide.if some African countries have made strides in development we can do it too=CORRUPTION,BOOTLICKERS
Blaming Caucasians /foreigners when infact the enemy is our own brothers and sisters.who are the thieves in Zambia and who plays a game of rule and divide.if some African countries have made strides in development we can do it too=CORRUPTION,BOOTLICKERS
A few good men is all a country needs to go to the next level. Show me Zambian icons in academia, public service, corporate sector, entrepreneurs and innovators in sciene and technology who are willing to throw all their weight behind the country and aid it move to the next level. A few good men comrades, where are they? I believe that if we change our mindset towards our country and realize that “no one is coming” to help us, we can do wonders. The resources are not out there, they are in each and every living Zambian soul. How is your work ethic? Are you in it for the short term or the long term? Zambian you are the master of your own fate. “Cogito ergo sum”
It is my understanding that most countries developed by targeting specific manufacturing industries with targeted training of locals to create and flourish in those industries.
Like the gold recently discovered in Zambia , GRZ should start training Zambian promising graduates and other youth on how to operate small gold mines, provide loans and give the sucsesfull students mines to run.
Money will remain in Zambia and Zambians will be employed.
It’s what we’ve been saying all along. Only that no matter how much you try to teach, some people just refuse to learn.
Debt is just modern slavery. When is it going to end?
Singapore and UAE have developed highly thru clever use of debt, trade ,services and tourism. Diversification is the way to go Zambia.
Whatever you do, the first step must be to remove corruption in Zambia. In Zambia in the last 9 years corruption has become a pandemic like COVID-19. So we must first remove corruption before we can successfully achieve development. And the strategies for fighting COVID-19 apply without variation to fight corruption. Wear a face mask, wash your hands with soap and water regularly, use hand sanitizer, when you cough or sneeze use your folded elbow, don’t touch your face, maintain social distance, quarantine, self isolation, stay at home, equip the frontline staff with PPE and let them work independently ( ACC, DEC, Zambia police, judiciary, IBA) etc etc.
If you can convince Bowman Lusambo to enforce the fight against corruption as he is fighting COVID-19, well and good – but that is a…
…If you can get Bowman Lusambo to be on your side and enforce the fight against corruption as he is fighting COVID-19, well and good – but that is a big IF, good luck.
Ultimately, of course, a vaccine will be ready in 2021, as Mwine Lubemba Chitimukulu has stated (though deliberately misunderstood by all beneficiaries of corruption), in 2021 Zambians must turn out in large numbers and vote wisely.
When covid-19 is long gone African countries will carry on having a never ending self inflicted pandemic called corruption which is sad indeed. Other countries will be rebuilding after this pandemic whilst African ones will be deteriorating more with corruption and dictatorship.
It is really sad that us Zambians are just a bunch of dull and corrupt people who only are interested in our pockets and not for the interest of the country. When a Minister or whosoever is in an influential position is given some dollars , to them thats development and they will sell the country for nothing. Who bewitched us? We have never worked for the benefit of our country. We have let foreigners rape our resources just like that. Who bewitched us ?
Africa in general would be a rich, wealthy continent if only we had good systems of governance. Corruption and the mentality of few people entrusted with instruments of power wanting to get rich at the expense of the majority is the number 1 enemy.
Every country has a debt (even the world’s largest economy in the USA) has a massive debt. But it is how you use that debt money that matters. The rich and the wealthy also have debts but instead of borrowing to drink Kachasu and wine (like what the poor do), they invest that money into projects that will generate more money.
As someone mentioned above, let’s start the fight against our own CORRUPT-64 virus before we can dream of anything else.
“We are in debt to the same countries that come for our Gold, diamond and copper, our currencies perform badly with those of the western worlds why? Because they take comparative advantage on us using their superior currencies, but when we turn the tables, that is when Africa…”
It is because instead of taxing revenues with a windfall tax, the government took on Eurobonds from the mine owners controlled IMF/World Bank. Debt, to be paid back at interest, instead of the taxes owed to the ZRS. Dividend payments not received or demanded by ZCCM-IH.
All of this theft covered up with neoliberal talking points about ‘market based solutions’, ‘free trade’, ‘lowering taxes’ to increase the nation’s ‘competitive advantage’. ‘Growth’ instead of profits.