ZAMBIAN ECONOMY PROJECTED TO GROW DESPITE CURRENT CHALLENGES, SAYS FINANCE MINISTER
In a recent address, the Minister of Finance and National Planning, Dr. Situmbeko Musokotwane, expressed optimism about the Zambian economy, which is expected to expand by at least 6% annually, according to an International Monetary Fund (IMF) report. He attributed the current economic downturn to drought conditions that have significantly impacted agricultural output across the country.
Dr. Musokotwane noted that at the beginning of 2024, it was anticipated that the Gross Domestic Product (GDP) would grow by more than 5%. However, projections have now dropped to just 1% due to negative contributions from the agricultural sector, where farmers experienced lower yields this year compared to last. The Minister highlighted that many manufacturing and retail sectors, reliant on electricity produced from water, have also been adversely affected by ongoing electricity shortages.
His comments followed a tour of the Multi-Facility Economic Zone (MFEZ) in Chibombo District, where he lauded the progress made at the facility. He expressed disappointment over negativity surrounding the IMF report, stressing that such perspectives undermine the potential for economic recovery. Dr. Musokotwane pointed out that while some mining companies, including KCM, First Quantum, Mopani, and Lumwana, had previously ceased operations, many have now reopened under the New Dawn government led by President Hakainde Hichilema, contributing to resumed production and processing activities.
The minister underscored that the MFEZ is set to become a hub for job creation, particularly for the growing population of young people in Zambia. District Commissioner Llyod Kayeka echoed this sentiment, emphasizing the MFEZ’s potential to generate revenue and spur economic development in Chibombo District. He commended the collaborative efforts between the local government and MFEZ management.
Charles Ye, Managing Director of the MFEZ, revealed that the facility has been operational since October 2023, with 11 investment agreements securing a total of $129 million. These investments include tobacco cultivation plants and a solar power station. However, Mr. Ye acknowledged ongoing power challenges and announced plans to build a $50 million solar power plant. He expressed hope for further support from the Central Government to attract additional investors.
As Zambia navigates these economic hurdles, the outlook remains cautiously optimistic, with initiatives like the MFEZ positioned to create job opportunities and foster growth in key sectors.@M.G