THREE major economic stakeholders have expressed satisfaction at the manner the Zambian economy has fared this year and predicted that the country would record more positive economic performance in 2010.
The Zambia Chamber of Commercie and Industry (ZACCI), the Economics Association of Zambia (EAZ) and the Zambia Chamber of Small and Medium Business Association (ZCSMBA) were optimistic the Zambian economy will attain the projected gross domestic product (GDP) of more than six per cent.
ZACCI vice-president North Eddie Kapungulya said yesterday his organisation was happy that as a nation, Zambia had managed to weather last year’s devastating effects of the global economic downturn.
Mr Kapungulya said the macro-economic key performance indicators showed that exchange rates had been stable so far. He said inflation was going down and the GDP may attain the projected revised rate of more than six per cent.
He said the price of copper and other base metals were going up and that the price of fuel had been stable generally. Such incentives may stimulate the economic activities next year.
“We are happy that as a nation, we weathered through the devastating effects of last year’s global economic downturn,” he said.
He said if maintained and the inflation reduced to a single digit, it would set a stage for next year’s improved economic activities.
Mr Kapungulya advised the private sector in the country to look forward to improved economic activities and diversify to enter into export markets.
Indigenous Zambians should venture into mining and attract direct foreign investment (DFI).
He also said the private sector should partner with small Zambian companies to ably compete with foreign companies.
Mr Kapungulya said Zambians should also take advantage of the value-addition to raw materials such as copper for it to be exported as a finished product instead of exporting products in a raw form.
He said value-addition in agro process should also be considered so that they could export mealie meal instead of maize or cooking oil instead of groundnuts.
Mr Kapungulya said there was need for banks to lower the lending rates so that capital could cheaply be available and that the medium for long financing should be made readily available. The Bank of Zambia (BOZ) should ensure that the gains made in terms of macro-economic fundamental were sustained.
The EAZ said Zambia would record more positive economic performance by the end of 2009 than earlier anticipated and paid tribute to Government for mitigating the effects of the global economic crisis.
Association president Mwilola Imakando said in an interview yesterday that the national economy was showing resilience and would perform better than earlier anticipated.
Dr Imakando said the country would register a higher GDP growth rate than anticipated while there were signs that the inflation rate would continue coming down.
“It looks like the economy will end stronger than was anticipated. From our point of view we are headed for a better economy than was anticipated,” he said.
He attributed the splendid economic performance to Government’s adherence to sound policies, which helped to reduce the impact of the global economic crisis on the local economy.
“All the achievements were recorded amid the effects of the global credit crunch,” Dr Imakando said.
He said other contributing factors to the bright economic outlook were the impressive performance by the mines, which at one time recorded a slump, and the construction industry where massive resources had been invested.
Dr Imakando was happy that the tourism sector had also started posting growth and would greatly contribute to the national aggregate growth.
ZCSMBA executive secretary Maxwell Sichula described 2009 as having been a year of challenges but noted that all the economic institutions remained strong despite the negative effects.
Mr Sichula said it was impressive to note that no Zambian financial institution was closed down as a result of the effects of global economic crunch while key industries continued operating.
He said the small and medium scale entrepreneurs who were the most affected by the effects had weathered the storm mainly due to the quick recovery recorded as a result of the measures the Government had put in place.
[Times of Zambia]
In all honesty, Zambia’s economy has been growing impressively for the past few years and should continue to do so. However, in order to start lifting people out of poverty, we need to be more ambitious and target GDP growth rates of 10% and above.
NO one can afford to have three meals a day nor eat an egg per day let alone buy a newspaper,bread,milk,butter people are still leaving in abject poverty.The picture shows cairo rd area but when one goes further there are shanties like chibolya and msissi compound near by then you will have a clear picture of the so called economic landscape.
This article stinks,all the people quoted here havent quoted any significant figures on which to base the factors that show any positive growth.this is more of a desperate move by some PR stooge
#1 You are absolutely right. We need GDP growth in the region of 10 % to real make a meaningful impact on the common man. And what these nay sayers are missing is that GDP is a leading indicator and things like employment are lagging indicator and the world all over know that GDP is a good indicator of economic expansion and if we continue to grow at even a higher pace , surely as morning follows night, the jobs will come, things will be cheap the lives of Zambians will be lifted. And RB wants this economy to even grow at higher rate and being an economist he knows this too well. SO appreciate what progress is being made. Numbers don’t lie. RB has done well since taking over. Sata is a not a listening person put him in power at your own risk. ICHILEMA is too naive. JUst exist to be used
From where am standing, the landscape is hazy, mwe!
The economy is actually expected to perform much better next year. This is good news.
“He said value-addition in agro process should also be considered so that they could export mealie meal instead of maize or cooking oil instead of groundnuts.”
This is very good advice. Why export maize when you can export mealie meal or cornflakes or even Maheu. Why export groundnuts when you can export roasted nuts, cooking oil…etc.
All these good things are happening because of the Good Governance brought in through our understanding President Ruphia Bwezani Banda.By 2010 I am sure all Zambians will be all smiles. This is the reason why we need to vote back RB. The man is focused and intelligent.
Rather than debate on the topic at hand, my brother MMD CHIEF BOOTLICKER decides to attack HH! I think for once lets debate issues and leave individual politicians out of our debates.
@6. Good observation
If people want to stick their heads in the sand and dispute these figures then that is their prerogative. Yes a lot still needs to be done and it is certainly going to take more than 90 days! However to be negative and critical for its own sake is not going to benefit ordinary Zambians. I have just been to Zambia, and anyone who paints a picture of the country being like Somalia is talking from you know where. Even with the fuel shortage, there were traffic jams in Lusaka. What we should be discussing now in a clear and level-headed way is how we can do even better. We should not be stupid enough to throw out the baby with the bath-water.
someone suggests that export mealie meal instead of maize, or cooking oil instead of nuts,to some people this is an indicator that the economy is growing,Lord have mercy,
Gross Domestic Product is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment and government spending, plus the value of exports, minus the value of imports,this is the only measure to which anyone would base their argument to say the economy is heading in the right direction, not waht someone suggests or thinks should happen,economic growth is not about opinions,its about numbers and actual figures
WE HAVE HEARD SUCH STORIES BEFORE SINCE kk DAYS AND THE SAME SONG STILL CONTINUES. KUYA BEBELE, COME 2011. HOW MANY FAMILIES HAVE A SQUARE MEAL PAY DAY? NO AMOUNT OF FOOLING PEOPLE WILL WORK THIS TIME AROUND.
#8. The guilty are always afraid of their shadow. Where exactly have I mentioned anybody’s name? If congratulating my good president is an offense then I am in the wrong domain.
@ 12
Have I mentioned you anywhere? I referred to Post #4 not you!
The growth rate will be even high er when Kambwili Chishimba is finance minister after the elections in 2011.
With the current corruption prevalance rate zambian economy will still remain stunted if corruption is not fought. From pipo studying the figures ecoomy mighty seeem to improve but go on the grassroot level and see the reality, you will definately object that economy is not improving. unemployement rate is still high, health sector is still poor no new clinics and hospital, labour input is still not balancing with compensation. majority zambians still have no certainity of where the next meal is coming from.
Boys I dont want to be negative but I just make observation! What are the enginee parts of our economy? ZESCO- just answered that next 600 Mega watt will be require if the problem of loading shedding was reduced. Bless for me difficult time ahead. Mealie meal prices are still high-this our staple food. Health has single indicator of improvement- a healthy nation can perform! Soon roads will be impassable cutting of many people. The quality of education is in the 20th century. Zambia Railway system will take 4 days from L-Town to CB. Hunger may loom if there too much rainfall- any that is nature
#10 smoothcriminal, if you dont understand something just keep your mouth shut. If you dont know wwhat Value Adding is then LORD HAVE MERCY ON YOU!!!!. In simple terms – when you export/sell processed goods, the returns per unit is higher than if you sell the same item when unprocessed. In addition, The fact that a country can afford to have many secondary industries that can process (1) SHOWS how developed country is, (2) CREATES more job opportunities for its citizens (3) SITULATES growth in and SUPPORTS primary industries such as agric (4) INCREASES the monetary value of your exports hence increases the balance of payment. in fact most developed countries import unprocessed goods, processes them (Ii.e. ADD VALUE) and then export them AT A PROFIT. U ‘ll see ur numbers become rosier
Compatriots, for those of us who say kuyabebele, no matter what! I want to confirm to you that Zambians have an absolute right to remove a government and put another in its place. This is our right and we protect this right with our own blood. However removing a government is not a whimscal act. It is a serious and weighty responsibility. It has to be a calculated act to ensure that the new managers of our economy are going to be better than current ones and our rights are going to be better safeguarded. This can not be done on the whim of Fred Mmembe who lost K17bn in Zambian Airways and has an interest to serve. Our economy is definitely improving and you can see it in the amount of construction in Lusaka. It is not enough but it speaks of better days to come. Do we throw it all away.
Ba Boot Licker and Ba Capitalist. There seems to be something you miss in you blind loyalty to Nyama Soya. The positive growth Zed is currently experiencing has little to do with RB’s efficiency (or inefficiency) YET. This is all a cummulative confidence the country has instilled in the foreign Investors due to the proved smooth & peaceful transfer of power from one prez to the next even in a time of loss of a sitting prez (MYHSRIP). Such confidence takes long to cultivate & the effects manifest years after. I really fear the harm RB & his PIG (Party & Its Gvt) will do – the rampant handling of the Oil tenders, influence in Judiciary (FTJ, Dora, etc),Party baised appointmts, sturbornness, sheers intolarence & impunity. In a few years well …they say the SHT will hit the fan. SCARY
#17, go back and read the article and then read what i have written,,,someone suggested that we should export finished products not raw materials,does that mean that the economy is improving or does that mean that there’s a bright landscape on the economy,no,its just a suggestion that if we export finished goods our economy will improve and rightly so.I really dont see your argument,make me understand based on the same suggestions,what you outlined are just the benefits to be earned from such industries,whatever you have written there is just drivel
Just to elaborate my point in Comment #19. Proper business don’t make major investment decisions (to invest or pull out of a country) in a matter of weeks with little or no feasibility studies. Various stages and stakeholders need to meet and deliberate in board rooms before they can commit. So if you are REALLY CONVINCED THAT JUST IN THE FEW MONTHS tha your RB has been in office, the investors have already seen how WONDERFUL your man is, MADE MAJOR DECISIONS and they have already as we speak finished construction along Kafue Rd or wherever, and contributed to this current growth in GDP or drop in the inflation down then you must more myopic than I thought.
#20. You wrote in #10 “someone suggests that export mealie meal instead of maize, or cooking oil instead of nuts,to some people this is an indicator that the economy is growing,Lord have mercy,”
The man said “Zambians should also take advantage of the value-addition to raw materials such as copper for it to be exported as a finished product instead of exporting products in a raw form.
He said value-addition in agro process should also be considered so that they could export mealie meal instead of maize or cooking oil instead of groundnuts.” The word INDICATOR means a pointer or. What the man is saying is that YES THE ECONOMIC LANDSCAPE IS BRIGHT and if we take value adding – WILL EVEN BE BRIGHTER – Don’t you want that Ba smoothcriminal eeeh?
Unusungu, i feel you and would now love to look at your points. Yes you are agreeing that the economy has experienced positive change in the last year or so. There are figures to show this. Now lets put that aside. What are the other points ??? Well why has the economy grown at the estimated rates ?? Well true investor confidence grows over years and large businesses plan their investments considerable time before execution. Yes however the leader of a nation at any point in time remains a major determinant of economic growth. This is why in countries where the capital market is quite developed , any change in Government impacts the stock exchange. So yes he is no Einstein but maybe he is not entirely an economic failure.
Dude,thats a suggestion, not that the economy is improving,thats an incentive FFS, to say if we do that then the economy will improve,not untill we add value to raw materials,then only will we see the benefits…infact the guy said value addition should be considered,,,which practically means that we are not adding value to raw materials for us to plough the economic benefits thereof.can you tell me what i dont understand so i can shut my gob
I am enjoying the arguments between bloggers. Good.
Let’s be thankful for what we have. Thanks that we have a GDP that’s been growing. It’s a good start. Now let’s step up the gears and improve on this.
Bloggers, let’s hear from you all how we can improve on what we have.
Listening.
Then do the honours of raising teachers, nurses and doctors wages. At least let this hardworking sector enjoy the economic growth.
“The post nmews paper” Nawakwi doubts RB leadership abilities and Mandyenkuku urge RB to resign by 2011. RB has failed to lead on the profound of MMD Manifesto on which it was founded.
All these statistics mean nothing unless you prove local Zambian’s livelihoods are improving. Education, health, infrastructure, job creation etc. You do not want to be like Nigeria where there is oil and people around are suffering. I reiterate give some of this money to the community INCREASE the wages of doctors, nurses and teachers. They pay tax and spend the money IN Zambia. Additionally, provide education and health. For a change do the right thing MMD.
#23 Positive. I would tend to agree with you to a degree – he may not be a total loss like pambi ba kateka twaishiba (tatulumbula amashina biggie). But my fear is that given the propensity the man has for power, as he has already exhibited, he would become like some of them given that opportunity. His personal agenda is also scaring me.
SECONDLY: I am also opposed to praise singing that some of the self-appointed Bakabilo are always splashing on the man day in and day out on LT whenever given a chance.
POLITICS hehehehehehe
Windfall tax fimo fimo. Those statistics can indeed be checked and a number of them like mother mortality rates and malaria infection rates are falling.However, one challenge of economists has been to work on the trickle down effect and reduce income inequality. And statistics do show that Zambia’s income inequality rates are high even by AFrican standards but that should not take away the good news that the economy is growing. All we should be looking is how to make the growth trickle down to common man. But believe me when i say such trickle down takes years to be achieved , . You normally need to accumulate enough to share out. Because you cant really share poverty.
#24, Ba Smoot. Hehehe. I agree with you 100%. It is a suggestion. But a very fantastic and great one at that. So Don’t shoot him down for suggesting. If you read the remarks prior to the suggestion, he tals about the metal prices, stable currency, dropping inflation etc which are the bright landscape. So why attack him for further adding such a wonderful suggestion?
#30 Positive. I think I am liking YOU more by the minute. Indeed benefits take long to tricke down. That is what we Zedians need to appreciate.In fact pa Zed visible change is already there though it is small. To appreciate this, One needs to have moved out of the country for alonger period. When you return, at first (depending on where you were) things may seem bad as compared to where you may have come from, but on closer examination, you’ll note a diference with the Zed you had left say 6 years ago. Things are getting better. – I KNOW IT IS NOT ENOUGH AS WE WOULD LIKE IT TO BE. BUT GOOD NEWS IS THAT IT IS THERE!!!!!!!
#30 thanks However, most of those statistics to do with reduction in Malaria and mother mortality rates are largely attributed to the donor support Zambia recieves. The govt should be aware teachers, doctors and nurses attribute to reducing poverty in a country instantly . Zambia needs to increase their wages as we are losing our doctors, teachers, nurses to other countries. These proffessions are not supposed to live in poverty. Countries like India have concentrated on education and it is working. This approach of increasing doctors, teachers and nurses wages is a very practical way and stimulates the economy.
#33 Mind typo error I meant to say the approach of increasing teachers, doctors and nurses wages is a very positive practical step to trickling down the wealth to the community
Question: if the economy is doing so well, why aren’t you feeling it?
” Mr Sichula said it was impressive to note that no Zambian financial institution was closed down as a result of the effects of global economic crunch while key industries continued operating. ”
It is not so impressive that they aren’t lending money. Last week, we were supposed to be impressed with them dropping lending rates from 24% to 22%? That is still usury. No ordinary business can borrow against those rates. And that is, if they can even get a loan.
Umusungu Wa Black
You are right about in some of your post. One thing you are failing to admit is that the current economic environment is driven by the MMD manifesto. These are not UNIP policies and RB is clearly guided by the MMD economic polices and the MMD economic polices are drafted by the best brains that this can offer. So I really don’t know what blind loyalty you are talking about. The whole world knows MMD is a decent party it respects the rule of law, we lose elections we accept, we lose court cases we accept. This is the party that the investors see and trust that their investment will be protected and respected. You have people warning investors that when they come into power they will reverse the sale of ZAMTEL,… to be continued
” “We are happy that as a nation, we weathered through the devastating effects of last year’s global economic downturn,” he said. ”
Isn’t that because nearly all of the population is locked out of the formal economy? And if you have been in a Great Depression for decades, I guess when a global great depression hits, it is hard to notice?
These economists live in cloud cookoo land. They look at their western generated statistical measures, and then try to interpret those figures from the point of view of the West.
Increases in GDP DO NOT IMPRESS ME.
Give me old fashioned GNP, and show me how you moved Zambia down the GINI index, which is the measure of social inequality (Japan scores very low, Namibia with it’s apartheid land ownership scores the highest).
from #36 ..SO if they can reverse the sale of ZAMTEL what would stop them from reversing the sale of all that was sold and do you think that would attract investors? I don’t think so, to be honest at some point in MMD we would be in the opposition, but certainly not to SATA as president. Does anybody even know SATA’s economic team? I bet not. Why, because there is none. Zambia is safe in MMD hands for now largely because there is just nothing better in Zambia. We know this Micheal Sata very well and it was a big relief when he left the party don’t be deceived ..there are no new ideas in that old heard. At least RB is a listening president and ask anybody around him and because of that he will be successful. It people that run and prosper the country and not individualist
#MrK
Give us an example,, you can even go as far back as 1900, of an econmy that grew instantly up in a vertical straight line. No body is saying because GDP is up then hunger should become zero. All econimies anywhere in the world grow in a zizzag way and the key thing to look for is the primary trend and the primary trend of Zambia looks good and this is the light at the end of the tunnel people talk about. Before Zambia got into trouble..GDP number were trending down in as far back as the early 70s . Go and read KK’s speeches in 1972 and 1974. The real impact of a shrinking economy hit the man on the street in the late 80s about 10yrs after the trend down and that is when we started seeing the effect of a declining GDP numbers, so the opposite is also true
On a serious note. The local authorities should shut down FINDECO, the building from which this picture was taken. Who knows when engineers last evaluated the structural integrity of this building. That goes from SIMOSON too.
#37…, and do you know why Japan scores a very low gini coefficient and Zambia (like Namibia) a high one? It has a lot to do with strengthening your economy’s industrial base so as to encourage trading in finished or semi-finished products, unlike exporting raw materials for a song, just to come and repurchase them as a finished product at a higher price.
Mr Capitalist. Where are you? You are an economist. Please comment on this issue. My humble observation is that economic growth ultimately results from the growth in labor input (man hours not necessarily workers) and growth in machinery. For long term sustainable growth this has to be supported an increasingly educated population, better health, adequate financing, good governance (including anti-corruption), stable political and macroeconomic environment. This is just to support the supply of goods and services. The supply needs demand. On the demand side we need local demand from jobs for purchasing power external demand through exports. This thing of calling for 10% and above is not realistic unless we get the above right. I invite comments.
I hope these stakeholders are not misleading us – it is not easy to judge the performance of the economy when you’re living outside the country. Let me analyse the story & the comments properly first before I comment any further…
wat pipo dont understand is that all these things were put in place during the time of Lpm,if we had a serious presido,by now the economy cud hav even been beta,we cud hav been tokin abt more jobs en money pipoz pockets
.bt u see they r js harvestin last season’s hard work.wat policies hav they put in place stimulate the economy? Which major investment has come since RB? Everything concerning the economy was done by levy and his regime.Those people who where close to lpm,where inteligent pipo who knew wat was beta for the zambian economy ,
the current regime,jst knows abt their own personal economy,eg..everything bwezani banda and sons general dealers.
and some1 very foolish wil praise that as policies to drive our economy
the foundation that was laid buy levy and his regime,some one normal..en inteligent wld hav built frm there
victor: buy nw,we cld hav been talking abt a strong and stable kwacha
so long we keep on having people like bootlicker,it wil take zambia a long tym to hav a leader like LPM.
because they wil praise all the wrong things at the expense of the the people who can deliver
MMD has got capable leaders,who can make things even better.
Ya right! How about giving the per capita numbers, then you will see how crappy the situation is.
#44 walanda bwino those who surrounded LPM were inteligent pip not ka Mulongoti and Chi William Banda and the rest who are giving wrong advise to RB.
Dont be fooled >I beg to differ that all the positive developments are due to LPM. Actually I find that asertion quite naive . Lumwana which was the largest mining development was actually started under FTH. And truthfully if you look at economic growth statistics you wills see that our GDP started growing towards th end of FTJ’s term I must also add that the Chinese bought the first mine under privatisation in 1988 during Chiluba’s time. However in all fareness the economic growth is coming from the private sector and it is the much hated FTJ who drove the private sector reform.In the one year that Rupiah Banda has been in office it is hard to say the benefit as economic policies take time to impact. However one can look at the way the crisis was handled and how much investor…
#7 Rupiah “focussed”? I think you and I need to talk. Next time you’re in the DC area, call me. let’s have lunch together. You need to have your head examined, and I’ll assist you get focussed, see things from a focussed perspective.
39. MMD Chief Bootlicker,
” No body is saying because GDP is up then hunger should become zero. ”
However, when GDP is mainly foreign corporations taking raw materials out of the country – no multiplier effect, no manufacturing of copper into finished goods in Zambia where it would create jobs, no sharing of profits and no paying of taxes to the state – then there is a direct connection of GDP going up and people getting poorer or staying poor.
GNP is the economic activity of Zambian nationals, which is now the only relevant measure of economic activity. Upto 1999, the mines were Zambian owned, so GDP (all economic activity in Zambia, irrespective of nationality) then would have been a decent measure of economic activity in the country.
But insaka william banda was LPM advisor and Mulongoti was his Minister of Information. So what are you talking about
With the mines in foreign hands, GDP is merely a reflection of foreign exploitation.
41. Number one PF Cadre, ” #37…, and do you know why Japan scores a very low gini coefficient and Zambia (like Namibia) a high one? ”
GINI is a measure of social inequality. In Japan, there is universal education and healthcare, which is a great equalizer. In Nambia, most of the land is still owned by German settlers. In Zambia, 80% of the population is not in formal employement. Zambia has a very small middle class.
” It has a lot to do with strengthening your economy’s industrial base so as to encourage trading in finished or semi-finished products, unlike exporting raw materials for a song, just to come and repurchase them as a finished product at a higher price. ”
It has everything to do with the fact that all of the Japanese economy is in Japanese hands (the same in China and South Korea), and in Zambia the mainstay of the economy is owned by foreigners. It also has a lot to do with the fact that the Japanese government treats all citizens as Japanese first, and does not try to eliminate children from the educational process through elimination exam. This is why you always see streams of Japanese children in school uniforms.
And that is another detail – Japanese school children’s uniforms are based on the WWI German naval uniforms. 🙂 They borrowed foreign ideas and technology, they did not get foreigners to take over their economy.
Hey hey hey. Great points MRK . Yes indeed and that is one major pitfall of development of most African economies. However we should accept that the positive GDP growth is welcome . What howver you are advocating is a total develpment paradigm shift, Unfortunately I dont thiki it can happen in our democratic system as the world powers would drive us to the wall like they have done to Mugabe. It is a tricky one.One reason is the worls has changed with Globalization and all. To try now to fight foriegn investment ( which also reads foreighn domination ) couls lead ot isolation. The question is do w ehave the balls
We should not overlook the fact that LPM was not quick enough to capitalise on the copper boom by changing the tax regimes in time. We have a lot to be thankful for but we should not sit on our laurels. We are still not fully exploiting our solar or hydro-electric potential. Agriculture and tourism could do better and yes we do need to increase our manufacturing industry although due to economies of scale and the fact that we are landlocked our goods will have a difficult time competing with Chinese or Indian goods that is why we need to be more closely integrated with our neighbours.
55. Positivist pa Zed, ” Hey hey hey. Great points MRK . Yes indeed and that is one major pitfall of development of most African economies. However we should accept that the positive GDP growth is welcome .
” What howver you are advocating is a total develpment paradigm shift, Unfortunately I dont thiki it can happen in our democratic system as the world powers would drive us to the wall like they have done to Mugabe. ”
Great to finally meet someone who understands what happened in Zimbabwe. There is so much propaganda – most of it coming out of the (once) much trusted BBC. However, his case is extremely instructive.
What he should have done in retrospect, is to pave the road years in advance, by educating a large vocational class – mechanics, doctors, lawyers, farmers, accountants and more – so at a certain date of his choosing, he could take over the economy in one fell swoop.
As it was, his tactics were too reactive. He only decided to unilaterally take over the farms after the British themselves declared the Willing Buyer Willing Seller program dead in November 1997. There should have been alterntative credit lines in place from China. But those are the only criticisms I have, and they are tactical, not strategic.
Right now, I think the most revolutionary thing anyone can do is to create massive opportunities in education.
The other thing is the need to tax the mines. These are criminal operations, which buy members of parliament, fund political parties, all in an attempt to avoid having to pay taxes and truly contribute to the economy. Diversification is only going to happen if they start paying taxes, because they are the only source of cash that does involve the Zambian people getting into debt through borrowing or fueling inflation by printing money.
No meaningful development is going to happen unless there is massive funding for agriculture and manufacturing, and this development is owned by the Zambian people.
If it aint broke don’t fix it. Stay with RB in 2011.
Its good to have such a discussion. I always say that running an African Country is quite a headache coz you are not your boss. The bigger boys can have you removed from office and minorities dominate the economic landscape. And to crown it all , the International media will paint you as just another African failure unless you do what they want like Museveni( and now Ghana) . I am always suspicious when they name a Bank Governor or Minister so so of the year . What they are saying is this is someone they can screw. You would overlook the fact that they have leaders like Bellusconi and Bush Junior
Why is it that Zambia’s economy only grows on paper or in the air.Figures mean nothing to the poor man in the shanty compounds of Kanyama,Misisi, Chibolya and so many unmentionable areas.The economy has been growing for whom?….the Chinese? Indians? All the cash is taken out of Zambia whilst RB and his fellow goons get a cut. Ama Zambians washalapofye neci Sungu mukanwa. The economy is growing my foot!!!
Damn,time difference has made me miss out on some serious debates,was sleeping,missed some economics lessons here
GDP should not be a measure of our economy as that is very misleading. Our major spender is the government like any other country however the thing to be mindful of is where the expenditure is made e.g. caring for top heavy govt officials let alone the touring expenses of our president and his contigents, polical campaigns, exports are there but the sales proceeds are never banked in Zambia except for day to day operational costs and so I would say the exports to a larger extent are non existent. As Zambia’s manufacturing sector is almost zero we rely mostly on imports but for obvious reasons the majority of imports especially by individuals are not declared and if declared are understated. Inflation etc. The well being of most Zambians say a lot more than those figures reported like GDP.
#63 is it the time difference or you were out performing criminal activities being a smooth criminal lol.
Akapondo I have found aperson to make your little thing a bit bigger. Surgery will be done for you for free. The only condition is you have to know how to use it iwe monko.
#65, actually i was watching Manutd thump Spurs,if that a criminal activity then im guilty as charged
@52, you’re absolutely right. Japan is a welfare economy, with high social expenditure close to 20% of GDP. However, you can not deny the fact that this is also a highly industrialised country, and hence my point in 41. I do not dispute your sentiments…
Number one PF Cadre, ” 52, you’re absolutely right. Japan is a welfare economy, with high social expenditure close to 20% of GDP. However, you can not deny the fact that this is also a highly industrialised country, and hence my point in 41. I do not dispute your sentiments… ”
I agree with you. I am not saying you did – but often people make the argument that because Zambia is developing, it cannot afford universal healthcare and education.
My point is that to a great degree Japan is highly advanced and wealthy, *because* they have universal education. Look at their economy. They are an island chain with lots of water, and very little habitable land (it’s mainly mountains and pine forrests). THEY HAD NO RAW MATERIALS.
As a result, they decided to import raw materials and set up a manufacturing based industry.
In other words, the only way they could advance, was through value addition. And the only way to do that, was to get their citizens skills so they could add value. An electrical engineer can take a silicon board, electric wires and chips with a collective value of a few dollars, and make a board worth tens or hundreds of dollars once it is sold in the shops. That is how Japan became the second biggest economy in the world. And they did it, by seeing their own skilled population not as an impediment to growth, but as the main growth driver of their economy. Not raw materials exports (which they didn’t have), but the resource of human value addition.
Now IMF policies are aimed at making Zambia export more raw materials – destroying local producers, giving breaks to foreign mining companies, and rewarding politicians for driving up GDP. The IMF is not in the business of creating competition for US and EU industry, but creating more opportunities for them.
Some intelligent zedians out there, im impressed. But before we get too high lets not forget that no country had developed without massive investment in education and health. the is no education system or health system to speak of pa z. The few who manage to make it cannot pull the whole backward country out. We will develop but it will take generations, the mentality of our people is still in the shaka zulu era, sorry to say.
Actually it won’t ‘take generations’. Either we keep the exclusive education access promoted by the IMF/World Bank and other elitists, or we return to the UNIP era of universal education. Which by the way is also what Japan, China and Korea have.