ANDD CALLS ON GOVERNMENT TO CONVENE AN ECONOMIC INDABA TO ADDRESS ECONOMIC CHALLENGES
21st October Lusaka-Zambia
The recent downgrade of Zambia’s 2024 economic growth projection by the IMF, from 2.3% to 1.2%, clearly indicates that our economy is on a negative trajectory. This forecast underscores the urgent need for attention from both the government and patriotic citizens of Zambia.
The IMF’s assessment highlights the detrimental impact of drought on our domestic economy. We acknowledge that this drought has significantly hindered economic development activities. It has led to an energy crisis, severely affecting production in key sectors and impeding overall economic growth. For example, load shedding has resulted in the collapse of many businesses, particularly SMEs, contributing to increased poverty and unemployment levels among Zambians.
The energy crisis has also escalated the cost of doing business, resulting in higher prices for basic commodities and an overall rise in the cost of living. It is essential to recognize that these elevated costs are barriers to economic growth, as they reduce the productivity of the private sector, which is vital for fostering development.
As ANDD, we believe that, in addition to the drought, several other economic challenges are impeding socioeconomic growth in our country. Many of these challenges stem from the implementation of UPND government policies and economic fundamentals. Key issues we have observed include low economic productivity, political instability, volatility in exchange rates, and a high inflation rate currently standing at approximately 15.6%. Additionally, the monetary policy rate of 13.5% remains excessively high, contributing to a lack of liquidity in the economy and limiting access to financial capital for business expansion.
Unemployment, particularly among the youth, is another critical factor inhibiting economic growth. At 60 years of independence, Zambia cannot continue on this negative economic path. We must work together to address these pressing challenges.
Zambia is endowed with vast natural resources that should drive our development. We therefore urge the government to convene an economic indaba to collectively identify sound solutions that will transform our economy and improve living standards for all Zambians.
This gathering should involve all stakeholders: the church, civil society organizations, development experts, political figures, the business community, and others. This collaboration is essential to finding innovative solutions to the economic challenges our country faces.
It is time to advocate for economic independence and unite in pursuit of sustainable development that benefits every Zambian citizen, regardless of political affiliation, tribe, class, or religion.
Samuel Banda
Executive Director
Advocates For National Development and Democracy