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]