GOVERNMENT MAY NOT ACHIEVE 6% 2025 ECONOMIC GROWTH PROJECTION DUE TO ENERGY CRISIS – ZUPED
….reminds government that SME’s contribute significantly to the economic growth of the country
Lusaka… Thursday September 19, 2024 (SMART EAGLES)
The Zambians for Unity Peace and Development (ZUPED) notes that with the current serious energy crisis the country is experiencing, small business enterprises are collapsing.
ZUPED President Ronnie Jere says SME’s such as saloons, welders, bakeries, butcheries, bars, media houses, barbershops just to mention the few are collapsing due to energy crisis.
Mr Jere has reminded government that SME’s contribute significantly to the economic growth of the country.
“Following the negative impact of the loadsheding on SME’s sector, we as Zambians For Unity , Peace and Development, we want to clearly state that it will be difficult for Government to achieve the 6% 2025 growth economic projection,” he said.
“Energy sector plays a pivotal role in fostering and promoting national social economic development and growth. Energy sector drives all economic fundamentals across economic sectors. Therefore in this regard, we wish to call upon the government to urgently implement short term measures to address this catastrophic energy crisis to ensure Small Business Enterprises remain in business.”
Mr Jere was of the view that government through Citizens Economic Empowerment Commission should empower all the SME’s with generators.
“With serious investment and efficient and effective management of the mining sector, we of course expect the mining sector to radically contribute towards the 2025 economic growth projection. We are of the view that the mining sector being our national cornerstone of development, the driving engine of our micro economy will contribute massively towards the 6% ,2025 growth economic projection,” he added.
“For instance, the unlocking of key strategic mining investment asset Konkola Copper Mine under the good management of the global mining giant Vedanta Resources which has begun on a progressive note by clearing off payment of US$250 million to the local suppliers and contractors, revamped the companies of the suppliers and contractors which have now resumed operations at KCM, hence contributing holistically to the social economic development. We commend Vedanta Resources for demonstrating serious commitment to resuscitate Konkola Copper Mine and full it’s strategic investment mining commitments.”
The ZUPED President further said the unlocking of Mopani Mine which has also resumed production and cleared off payment to the local suppliers and contractors, restored their business operations.
“With no doubt all these investments in our two key strategic mining assets will contribute significantly towards the the economic growth projection but however it will still be difficult for Government to achieve the targeted target of 6% due to the negative impact of the energy crisis on small business enterprises,” he continued.
“It is also critical and imperative that foreign investors particularly in the mining sector prioritize offering business opportunities of supplying to our local suppliers and contractors, this is a serious call we making to all the investors Mopani, Konkola Copper Mine, FQM among others to prioritizing awarding business opportunities to Zambian business enterprises, we believe this will not just revitalize our domestic economy but will also enhance government revenue tax base and optimize generation benefits from the mining sector by Zambians.”
He since called on Government to expedite the process of enacting Mineral Local Content Bill into law to compel investors to mandatory and offer business opportunities to Zambians.
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