FINANCE and National Planning Minister, Situmbeko Musokotwane has pledged to ensure that Zambia’s economic growth is not overturned by the prevailing global crisis.
Dr Musokotwane said attracting foreign capital, in the face of the shrinking foreign direct investment (FDI) in the world, was also key to the improvement of Zambia’s economy and his target was to attract at least US$3 billion in investment annually.
He said if Zambia could attract between $3 billion and $4 billion worth of FDI every year, the national economy would stay afloat even with the current troubled economy of the world.
Dr Musokotwane said this in an interview in Lusaka yesterday when asked about his immediate pre-occupation, shortly after being sworn in by President Rupiah Banda at State House.
He said the 2009 national Budget would contain measures that would insulate Zambia against the possible effects of the current global financial trends while ensuring that economic benefits trickled down to the people.
He said that his ministerial team would put in place measures, which would counter the offshoots of the current economic difficulties in the world, which had been augmented by nose-diving copper prices.
“We will have to ensure that the Zambian economy does not post a negative national growth,” Dr Musokotwane said.
Dr Musokotwane said Zambia should further sell its investment potential individually because it had several unique advantages and it should therefore not be lumped together with other countries.
He said Zambia’s economy was small and investment of at least $3 billion annually would suffice to keep the economy buoyant.
Dr Musokotwane said that the investments, both local and foreign, would offset any possible effects of the slump in the global economy and the lowering prices of copper at London Metal Exchange (LME).
“We will continue talking to investors both local and foreign on the investment potential in the country,” he said.
He said that the 2009 Budget should also continue ensuring that the economic successes scored so far were translated into something concrete and trickled down to the majority of the people in the country.
Times of Zambia
number 1
2nd
as long as u have not decentralised you economy nothing will trikle down to the masses
“We will continue talking to investors both local and foreign on the investment potential in the country,”
He seems promising.
please make sure you review the current tax situation. high time regular tax payer started beniffiting from the plunderers.
Dr.Musokotwane need to work harder because the 2009 budget should be ready for Zed.
Taxation is too high in Zed
Viva H H he onces worked with Dr. Musokotwane before in Zed.
Congratulation the honorable minister of finance, show us of what grey matter you are made of. Please consider reducing PAYE in next years’ budget.We have sucrificed enough…twapapata…….
who does not know that Mr minister..!! we are interested in actual measures to improve economy not just outbust.seek to improve agriculture,manufacturing so that we strenghen our economy not just depending on bogus investors,hand outs from donors etc.
Dora Siliya looks beautiful in da picture. Mwaaaah!
I agree FDI is important but it is not “the key”. The key is the ability to sustain the country independently through our own productivity and self-reliance
Ah sorry he didn’t say “the key” but “it is key”, I agree. But it’s an easy thing to say, let’s see if it actually happens
Zambia with the right minds can simply blossom into an economic giant. One hurdle of putting off the wrong persn has been passed. Let us tackle the challenges ahead head on and apply realistic approaches to these challenges. The task of ensuring that economic activities are not restricted to the line of rail is perhaps our greatest challenge. The emergence of a vibrant participation of ‘SME’s’ is so vital to real economic growth of Zambia. The time when opportunities will be seen beyond the line of rail will signal the begining of the ‘real diversification of the economy’
Honeymoon is over it’s time to get down to work,increase the tax threshold to abt k1.5m coz thats cost of food basket for a fimily of six.
#9, Combatant,
Lets focus on combating the economy rather than beauty.
Musokotwane is from Southern Province in Zimba/Kalomo area. There is even a Chief Musokotwane in the same area
#6.Livingstone- Zambia is among the lowest taxes infact it among the four countires with the lowest taxation in the world if you want look it up online or if you want i can send you an email with an attachment conatining that information.
I am wishing you all the best Mr Minister, though you need to work on the decentralization of financial transactions, can you allow provinces to drive there own economies. By so doing you will attract some level of investment in those areas.
Vi mbovu ba Minister.
Yes please #16 let’s start with income tax including the bands
Ba LT,please use another picture for the Honourable Minister,this particular one looks rather suggestive!
Thanks Mr Minister that sounds like it but what should be borne in mind is that the investment climate has to be created to attract and retain investors i.e factor conditions such as road infrastructure, reliable transport routes not to mention the airline industry. Direct flights to key destinations. Also transport and communications minister you are doing okay for a start with the business strategy for Zamtel but you also need an overall strategy for the communications and transport Ministry as this contributes to factor conditions. How far are you with the optic fibre. We need cheap internet in our homes to do business in Japan from my living room. All da best plaese keep working hard
#16, that data is very interesting, Is there a particular site that contains it.
if u re interested in the long term well being of the zambian economy plse open portifolio in investing in well defined basic heavy industries such as Copper Industry, Colbalt plants,machine-tools industries,engineering plants,metallagical industries, iron & steel mills,Petro-chemical-plants from our own oil if explored,Precious stones industries. alongside these these heavy industries set up side by side light industries or consumer goods industries which add value to these heavy industry products. we are tired of ever exporting our raw materials or jobs.
Continued… Okay we have heard from the Mines ministry, Information and Broadcasting,Finance and communications and transport as well as Works and Supply. We need proper action and accountability in the education sector, teachers should begin to work effectively in the government schools we are tired of taking our children to private schools were they fear to teach them manners becoz our money and not our children is a priority to them. Then the Hospitals, these private clinics dont really follow treatment protocols which is dangerous. Not to mention water and sanitation as well as energy/electricity sector. The ministers in these places also need to work hard.
#16 and #19
Tax is not a solution to our financial problem. the best aproach is to reduce interest rates. When you reduce PAYE people will have more money in the pockets but prices will also follow suit by going up because the production or supply of goods wont Change. Inflation will also get high and the dollar will be more expensive. Ask MUGABE. what suppose to be done is reduce interest rates let people and companies borrow big sums of money for Capital projects and Manufacturing then imployment may go up and production or goods supply will also be up and trigger price reduction or stagnation. Dont listern to SATA on taxi issues gentlemen
Off topic guys.
Those in diaspora, someone explain to me why we have to be changing our passports? Mine is valid for another 6 yrs. I have permanent residence (PR) in it, if I have to get a new passport, then it means I have to get a new PR in the new passport. What a country our is!
Why not say those that are valid are valid until they expire? Britain changed their passport but all those who had old ones were told they still had to hold on to them until they expired.
God I am going to get a British passport! What nonsense!
$3-4bn FDI sound great. But which sectors of the economy are they targetting. Can we please diversify our economy. A $1bn into agriculture can have massive impact. Copper prices are fickle, please let us attract massive FDIs into non-mining industries.
#25 taxi issues I like it. Also minibus. He is an expert 🙂 Thanks for bringing my president into the discussion as always! Pabwato!
#26 I for one havent bothered to rush for the new passports. It’s insane to force everyone to renew pps by Feb09. I am sure we will still be able to renew anytime after that. At UK aiports, they dont care about foreign passports. All they look for is their visa. They can let you in even if your passport is expired but your UK visa is valid. I have travelled like that before.
No 17 Auditor General’s Office needs to be empowered first before the move to decentralise can happen perhaps i can consider working near my home village.
Economic prosperity in Zambia should begin with food security. Once the issue of food is sorted out, other things just fall in place. That is my personal experience at family level economics.
It is apparent that LT contributors struggle when there is an issue of substance and genuine concern to the nationals of Zambia.
Had this story been about nonsense the contributions would have already hit 200.
Fellow Zambians, Dr Musokotwane has merely said what he would like to see happen. Which anyone could have said.
I dont doubt his intellect and experience, but our problems will not be solved by an individual.
Before you start congratulating, move on to the “how”. Lets be analytical!
#29 Thanks UK-Zed Observer. I am sorry but they will not be getting my £50 no way. For a family of four it works out to £200-no way.
We are talking about a S)T)U)P)I)D passport which more West Africans than Zambians have got in SA.
What a Mickey mouse government we have! Seriously I am going to get a British passport.
What is this new passport story? I haven’t heard…
9. Combatant
Nov 18th, 2008 at 12:44 pm Vote: 0 0 Dora Siliya looks beautiful in da picture. Mwaaaah!
====================)
They say beauty lies in the eyes on the beholder.Unfortunately i can only see a teddy bear in red…
Lasting solution is to empower Zambians to invest in large scale mining.These foreign investors are backed by their gvts and banks. We should also do the same to our people
#28 i had to bring him because he is the one misleading people ao Taxi issues. its Bad for a leader be ignorant about how Money as a good operates but its too dangerous for a leader to know a bit of it. a good example is in Zimbabwe, low tax, more money in your pocket and no goods on the shelves. if yuo go to Zim you will have more money in your pocket such that you need a KG just for a hair cut.
#28 i had to bring him because he is the one misleading people ao Tax issues. its Bad for a leader be ignorant about how Money as a good operates but its too dangerous for a leader to know a bit of it. a good example is in Zimbabwe, low tax, more money in your pocket and no goods on the shelves. if yuo go to Zim you will have more money in your pocket such that you need a KG just for a hair cut.
You are wrong #18 Dr Musokotwane is from Kalabo Barotseland. For those who doubt his abilities please call Dr Seshamani Dept of economics UNZA, Dr Fundanga or Dr Kalyalya of Bank of Zambia, Secretary to the cabinet Dr Kanganja and World Bank/for Swaziland Government. Please note Magande relied on pippo like Dr Musokotwane when he was at Finance before going to state house as special adivisor economics to the President.
#37 I understand, thanks for bringing him anyway. He wasn’t going to be Min of Finance anyway but the president. I remember LPM thinking the reason for kwacha depreciation was that we stopped making the coins – obviously not an expert in economics. Yet the country did OK, because it wasn’t his job to run the economy
#34Sony Ericsson Phiri We all have to change our passports by Feb 09. What nonsense! They can shove it where the sun doesn`t shine!
Ala… what a hassle
So we will have no passports for a year
Sony Ericsson Phiri It is not just the hassle it is the £50 they are asking for!
So Madam Kapwepwe, it is about the ‘come back’. All this time you’ve been beta with Zambian politics!!. not suprising… because the Kaundas and Kapweepwe always feel Zambians owe them GRZ!!.
This is show that we are far away from development.
#15 u are very childish.
#40
if its not the Job of the president to run the economy of the country, then whats his job? Most of us discussing issues of the economy are not economist but being professionals in other fields makes us at least understand the basics of it. Some understanding will prevent us from rhetoric that is completely misleading. every one aspiring to be president should be able to show us that he understands what these issues are about.
I envy China, which at least has empowered most of its prisoners to come and invest in zed and africa at large. Here to get anything from Citizen Empowerment Fund, you have to be a Kapwepwe, Musokotwane, Nkumbula, Kaunda, Lewanika and very soon i will not be suprised a Mwanawasa. then others are talking of economic improvement under these guys. Too bad it may occur not in the life time of most of us blogging here. Awe nikatwishi pa zed. wait when the mines are done with labour reduction, degree holders will start lining up for craft jobs. Mark my words.
Passports have to be changed so that they are compatible with global travel systems which read the passports at airports. If you have noticed, the passports are now swiped and then your details appear on the screen.
They are adopting the new standard so that they wont be easily forged, and therefore you will have less of them with “west africans in S.A”
If you dont intend to travel anytime soon, then dont change until you have to.
Lets not complain for the sake of it. Do you want to modernise or not?!
#49 I have the swipe one those have been mandatory since about 1998..?
Is it a different kind of swipe one? Any details on the internet? Thanks
I personally think there is too much emphasis on FDI and not local investors. It is high time the government took deliberate measures to promote local investment. This way, external events will have a lesser effect on our economy.
LT: “He (Musokotwane) said the 2009 national Budget would contain measures that would insulate Zambia against the possible effects of the current global financial trends while ensuring that economic benefits trickled down to the people.”
This is a pregnant statement bwana Minister.Can you please how this will be implemented for me an ordinarly person to understand my (people) benefits.
Zambeziland is part of the global market/economy and can not possibly escape the effects of Global economy. Can it?
Sony Erricson 50&51. It is a different one and what our government is doing is simply trying to ensure the standard of our passports is as good.
8 yrs ago i could not use my passport as proof if ID in a bank in the UK. Reason i was given ” your passports are easily forgeable, hence we cant rely on them”
If we standardise, then we will keep pace with the world. Even in the UK zambian passports are like gold for West africans. The new passports will be more fraud proof.
The government needs to be more nationalistic in its ecomomic development model, this neo-liberal capitalism has not and will not work for us,liberlising our borders and markets to the extent that Zed businesses are forced into bankruptcy and our people can only buy foreign products in the Zed is a travesty! Chinese workers , working in the our mines, and selling nishima and hair products in the market is a travesty! Do you think the Chinese would allow that to happen in China? The govt. needs to adopt import subsititution idustrialisation as a mode of economic development and reduce our foreign dependency!it wont be easy but it should be our long term goal!
@ 52
I agree with you!
49,Don’t support topics you’ve not well researched. Have you ever seen a swipe machine with Immigration at Ndola, Lusaka or Livingstone airport. A passport fee should not cost higher that the parliament endorsed lowest pay of a country. K500,000.00 is by zed standards way far above the K263,000.00 minimum gazetted pay. So lets the government start by sweeping their dirty and inertia before expecting people to pay for a service. Services such as passports issuance by the govt are why we pay tax and not for someone to get fat like Dora and look like a teddy bear no.
52. Zed Dude
LT thanks for changing the the topic!I totaly agree with you. We really should emphasis on local investment. Let us be self relient rather depand on forieghners all the time. Think back to the days when Zimbabwe was the envy of our region…Simply because they were self relient. They were producing almost everything them selves.
#54 sure, I have looked on the internet and they are talking of biometric passports. The problem here in the UK is I’m doubting that my application can’t be lost. Do they have biometric equipment at the ZHC in London? Otherwise how do I get my passport?
Hmmmm!
Dora looks HOOOOT!
# 6 It is so disgusting that when you we are analysing the new Finance Ministers statement on investment,you come up with the slogan of viva HH.What the hell is this? Even if the minister worked with HH at one time,so what.You are the people spoiling Hakaindes name,because you want to exalt and shower him with praise even when it is not necessary.Hakainde lost the election so please try to give him time and space to reorganise.After all we are all not sure if the man is still intrested in politics.Please try by all means to erase the idea in your head tha anyting Tonga is better than the rest.Try to be part of Zambia.
Cont… LT: “He (Musokotwane) said that his ministerial team would put in place measures, which would counter the offshoots of the current economic difficulties in the world, which had been augmented by nose-diving copper prices.”
Copper prices have disappointed us before in the 70s and 80s. You know very well that we are at the moment enjoying the name of being a copper producing country… with very little if not no benefits for the people of Zambeziland.
The Ministerial team is connected other Ministries. The Vital organ of Zambeziland Agriculture. How do you see it ticking?
49 I agree we should move with time but they should not force us to change by feb next year, it’s not like the current ones will be obsolete by then.
@ 57
You are so right, the increase in price was way above the rate of inflation! i do not know how they can justify it, it was grossly unfair, I had to pay 500 000pin and a 100 000 bribe to get it done in 4 weeks! where is that additional revenue that they have made from these passports?
LT allow our Students to exhaust their issues with passports, We dont want them to get stuck. Its unfair to talk to them about economics because they can only speculate. They dont understnd that its not the state to ask for local investments because all of us are locals including the ministers, the question should be, we the individuals or locals what our we doing about our personal investments instead of just talking. if we dont have capital can we prove to the lenders that we are worth the deal??
Umwina Kalale. My argument is for standardisation of passports so that they can be used internationally as well. As far as i know, the old passports will be invalid for travel if they dont have biometric information.
This information is in the public domain, not much research needed.
And to answer your question, yes Lusaka international airport read passports by swiping if travelling internationally.
I apprecaite the cost may be prohibitive and unjustified, but dont let your emotions get the better of your intellect.
#29
Is it possible to get a visa with an expired passport?
I thought that the visa can only be issued with a valid passport?
#58 mama Jinx. What happened to Zimbabwe. I would like to know. Why has Zimbabwe sunk so low. Have they stopped producing?
Could it be that it were the white farmers that produced. Could it be that the local people who have settled on the repossesed land are now just drinking kachasu or they are subsistence farmers who can only produce enough for their families. Just what went wrong with Zimbabwe. Can someone plz educated us so we can learn from it.
Sony erricson. The passport applications are processed in Zambia, but obviously they will enable the embassy here.
The down side is that they are posted by diplomatic pouch which goes once in maybe 3 months. It does not return until it is full, so it could laguish in ZAmbia for another 2 months, Total 4-6 months.
So if you have trips planned, bear this in mind.
#67 yes you are right, Dr Musokotwane has served at various levels in the Government including being ST, he surely should know what he is talking about.
cont… Promote threefold investimnet by 1) locals 2) foreigners patnering with the locals and 3) foreign investors.
Zambianisation for the sake of it did not really pay and abandoning our wealth to foreigners has not paid either. What next… now!
Musokotwane and Chileshe the challenge is yours for Motherland.
Mama Siliya please do something about your weight-getting too fat is not good for you!
#69 thanks for the info looks like I have to make a trip home before Feb 28th, as I cannot be sitting for months minus a passport
73
Glad to help my brother. Good luck, i am in the same shoes.
#71, now you sound like HH, this is precisely how he planned to get local partnerships, this is how South Africa has managed to woo investment, sometimes 1:1 investment rations between foreign owners and locals
#73
Try to tell that to your project manager.
Take time off to go and renew one’s passport when it can be done through the bl00dy embassy!
Lose some weight Dora Seliya please you look round.
Will Dr.Musokotwane explain to us the sectors he is targeting for that type of foreign investment.Currently most sectors that are under foreign investment are not beneficial to most Zambians.Just look at the Tourism sector and the minining sector.These sectors are all busy externalising all the monies and government is not willing to pass regislation to stop such acts.
I hope and trust The finance Minister will implement what he has promised.We hope the experience he has had with IMF will help or rather benefit Zambia
#76 but then 6 motnhs without a passport and I can’t go to the pass office to chase the thing – mmm could be years
#76 you mean my project manager or yours? 😉
Is Siliya looks appetising,Is she seeing someone?.I want to go for her!
Siliya looks appetising,Is she seeing someone?.I want to go for her!
#69 What guarantee is there that we wont find these new Passports in SA? What we are saying is it is not right to say all should change by Feb 09. The problem we have in Africa is because you can afford then it is alight. Yes it may only be £50 but that is money! If a passport is till valid then why not use it? Its not long when Britain changed its passport but they did not say all people have change their passports did they?
I was here when they changed their driving licences and it was all the same thing. They were introduced gradually. They did not say everyone had to change their driving licences by December!
Oh come on #83 she is fat! Then again it is your choice!
LT can you please create a different site for students so that they can talk about passports, the weight of dora silya, project supervisors and the cost of a visa
Why should some post a comment just to say am number i thought this blog was for Adults and not for nursery or pre School going kids.Please lets grow Up and stop being childish.Let post serious comments that make sense
84. Anonymous.I Think the issue as you rightly put it is cost. If Zambia was as democratic as its claims to be and if our MP’s lived in their constituencies, then people could lobby their MP’s to take the issue of cost to parliament so that the cost is subsidised.
In reality, our government is bankrupt and can only fund major innitiatives through doner aid. With the world in recession and money scarce, so could this aid.
I dont have the answers, i am merely pointing out reality. £50 is a lot of money for me as well.
“US President-elect Barack Obama and his former rival John McCain have vowed to work together in a “new era of reform” to restore trust in government.
Meeting for the first time since this month’s election, they pledged to take a bipartisan approach on critical issues such as the US financial crisis.
Mr McCain said he “obviously” planned to help Mr Obama’s administration.”
Why can’t we be like this. Why r african politicians so power hungry
and into themselves that they cant accept defeat. Shame
#88 Thanks Smal.
#86 if the issue of a passport is not important then you need to have your head checked. Typical African.
Let us embrace one Zambia one nation.Prosperity is our destiny,no doubt,the new cabnet will deliver.Zambians we like to praise others posthumously,that is bad.Let us give credit were it is due.
#83 you are off the mark.You are digracing from real issues.Mind your language.You mean only for today you can not write sense.Watch out.
About Passporst
Most of us are missing the point all together. Zambian passports are not that easily forgable as you people may think. What zambia lacks is a well managed data system with checks and almost water tight controls in place. Mostly foreigners come to zambia bribe officials and get passports and use them as they wish. Now with the much hyped biometrics, what gaurantee do we have that some ill payed and demotivated staff at passport office will not issue a passport to an undeserving foreigner? what wee need are controls so that only genuine zambians get zambians passports and not all who can bribe.
86 Engines. You are an air head. It might come as a surprise for you, but passports are not just for students and neither are visas.
The fact that this has to be explained to you is testament of your calibre.
The passport issue is an important one that affects the whole nation – deal with it.
You sound like someone who let schooling interfere with their education. If you can figure that out then i stand corrected.
While reduction of interest rates is in itself good consumer spending normally spurs econonim growth by creating demand and once demand is created companies/manufactures will have to meet the demand,prices of commodities only increase if supply outstrips demand i think that is basic economics.
When you reduce PAYE people will have more money in the pockets thereby creating demand which will turn inject more money into the Govt coffers through VAT and utimately increased profits for companies thereby increased company taxes,PAYE through increased employment levels.However bear in mind that inflation in zed is mainly cost push whilst in zim is the printing of money.Kindly read abt inflation
#90
iam actually a typical african, how do you know? you must be a typical briton. Check the Home affairs office(whatever you call it) for a Visa and a passport i think thats the right forum for you. the topic here is economocs, chaps will cheat you here and you wont enjoy christmas in detention renew your passport and visa in timeat home office and at the embassy not on LT
Umwina Kalale. If you go to apply for visa at british high com in lusaka, they will take a scan of your iris. The iris is unique to each individual just like a finger print – even identical twins have different ones.
If someone bribes and forges your passport, the iris scan on passport, and that on screen at airport will not match. Problem solved for now.
#96 You sado! I am getting a British passport! Happy to go to th embassy to get a visa to travel to my country of birth.
#95
“When you reduce PAYE people will have more money in the pockets thereby creating demand” Anonymous once this demand is created what hapens to price given a constant supply of goods before your shoprite even pays VAT to govnt in December?
basic economics
Reduced PAYE will only free money for more consumption and drinking and increase inflation, we want real money that can be channelled to capital priojects like manufacturing thats why we want interest rates to come down first.
99 Engines. The model that you have in mind, is it inflation targeting or is it interest rates and economic growth? If it is inflation targeting the lowering taxes may have the possibly undesirable effect of increasing inflation while stimulating growth.
The key is to get a good balance between growth and inflation. As you well know, there is a huge difference between economic growth and poverty reduction.
Ecomnomics has to be taken in context, it cannot be transplanted carte blanche from a text book. You need to consider your objectives and your environment.
Long live Stumbeko Msokotwane…..you’ve been an inspiration to me ever since you vistited my class in 2001,at your former school;Hillcrest National Tecnical High School.I later on also decided to pursue a career in economics but I later switched on to IT when I fall in love with computers.Soon I’ll be getting my Msc in Business Informatics and sometimes later a Phd so that the “Dr” can be added to my beautiful name.Long live Dr Stumbeko Msokotwane,long live Hillcrest and long live Mother Zambia!
Engines. I believe i may have misunderstood your comment, accept my apologies.
Smal
You can not answer every one and to everything. Either you yourself are wrong or something is terribly wrong with you and your thinking.
Reduce tax,but people in informal sector are not taxed.Please even in Europe people in the informal sector pay tax.
This day dream by “a new low understanding of tax regime will make people think otherwise.”
Sata mislead alot of people even the so called learned,concerning more money in the pocket.Theorectically and practically impossible.
Sata was merely fattening the cow on the market day,as he wanted plot one.Never be cheated.
104. As usual you miss the point. It is possible i may be wrong, i am human. That does not mean i cannot express myself.
Would you rather i was quiet with my head tilted to one side as a “peaceful zambian”?
You are not obliged to take part. You need a dose of positivity my brother.
#93
You hit the nail on the head!
The type of passport won’t matter!
As long as there is corruption at Lusaka Passport Office, foreigners will continue obtaining Zambian passports!
Wake up and sweep the house clean!
“My heart is bleeding because Zambians are suffering,”i quote,sata.
Sata can be the last people to talk about Zambia’s economic crisis.
Sata minced up,I know your history in MMD.No Wonder your former chief executive(Chiluba) could not pick you.
If Zambians gave you the mandate to rule,you could have change the constitution to suit you.Since the first attempt failed,the third term.Sata you had to bootlick for the third term until the bitter end.
Gen.Miyanda,Gen.Tembo refused…….You remained the most senior man in MMD and you thought,you are now near authority.
Whilst reducing interest rates to spur growth in the manufacturing sector, i still insist that without demand what the manufacturing will not be sold whilst the same manufacturing will have to pay the cost of capital.basic economics indicate that there must be demand first for you to produce.with constant supply of goods you dont expect an upward adjustment of prices.Please inflation in zed is cost push ie fuel,electricity,labour,transport costs,raw materials and i agree with you cost of capital.
in the developed reduction of interest rates are major componet to spur economic growth however in zed what we need is to reduce taxes on fuel,electricity and most raw materials.
#109 Anonymous
The fact that we are importing everything from tooth picks to car spares at expensive prices means that demand is already there. what we need now is local manufacturing. this manufacturing will inturn create jobs and increase supply to meet the already existing demand at the same time the tax base will increase for GRZ to increase on social service expenditure. i hope we are not about to start going in circles now.
Reducing may not have as much effect as people think since only a few Zambians have formal employment. many are in informal sector.
#111 I emant to say reducing PAYE.
We need to also find ways of boosting disposable income for those in the informal sector.
#110 has a point. I just wonder why people are not investing in manufacturing.
Could it be that the demand for goods in Zambia is not big enough to warrant & sustain manufacturing companies ie cost/benefit analysis is not in our favour. Or could it be the Govt has not provided good enough incentives to would-be manufacturers. What do current manufacturers say about the investment environment in Zambia. Are they happy? Are they growing and expanding?
Surely if demand is there, then it is a business opportunity, isn’t it?
#92,Im a bacheror.Any information of the Lady being available?.Im sure,its not a sin to go for her!
#113 The problem is capital finance.
we Zambians can not easily borrow capital finance from overseas because zambians have naturally not invested offshore. the only option is to borrow loacally but the interest rates are too high, the banks are sayng we are a high risk bunch of people when it comes to honoring debts so they are asking for unreasonable collateral. These foregners you see borrow from there embassys. So the Bank of zambia should come in to regulate the interest rates and find a better criteria for screening people.
@ 113
interesting points you raise. I think it is cause developing local manufacturing industry has not been the governments priority since MMD came into office and adopted the IMF SAP’s in their enterity. Do you not remeber ZCBC , mwaiseni stores , Kapiri Glass products, etc?? the shops used to be filled with Zambian produce from Speciality foods and other local Zed producers, but since the borders were liberalised we have the Shpoprites , Peps, Supremere Furnishers with all their tax breaks and cheaper produce due to their economies of scale, and bascially Zed goods could not compete! the govt needs to implement import substitution industrialisation, that is the only hope for our land!
Trickle down effects are not a matter of an overnight nightmere.
It takes time to lay a foundation. You dont start sleeping on the plot before you lay a foundation and build a house it.
Forcing a big trickle down effect now would mean chewing the very seed that a farmer knows how to sow. Those who understand how to grow an economy and how economic growth takes place will follow what am saying. If you find that you cannot follow what am saying dont worry, dont think something strange hit you, no. You are just unfamiliar with practical workable economics.
@117- who are you responding to?
@ 117
Yes trickle down economics takes time, it is about setting 20 year development plan. But remeber all these western economies that you so admire, had to go through all those stages, starting from import sunstituion and protecting their own economies untill they could compete on an equal footing! but what our government advocates is trying to compete now, when we balatntly cant, without the basic foundations of an industrialised economy! that has to be adressed full stop or the gap between rich and poor will continue to widen at an alarming rate, pushing us further into Poverty!
#119……..you’re right!You said exactly what needs to be done.Maybe RB should make you his economic adviser.
#48 you forgot, “…or a Chiluba.”
#93 Spot on mate. It is not as if it is identity theft! West Africans get Zambian passports as they wish. his is why I am not buying into changing them. It doesn`t matter how complicated they are, it is corruption within the passport office!
#120
thanks, he should make me his economic adviser,its just a pity that MMD has lost their way!
“Dr Musokotwane said attracting foreign capital, in the face of the shrinking foreign direct investment (FDI) in the world, was also key to the improvement of Zambia’s economy and his target was to attract at least US$3 billion in investment annually.”
Yes, Mr Minister but have much in % ownership FDI do the investers have to bring in in terms of partnering with local investors?
Ba Engines!While I agree with your good contribution I beg to differ with you on one point.Sata was not just talking about reducing taxes only but also reducing government expenditure by cutting the blotted cabinet!I think government should also broaden the tax base.ZRA needs to be restructured and systems improved.I think inovation in the tax regime is also essential not just copying some UK tax laws and making a few changes here and there.WHY DOES ZRA ASK US TO DEMAND FOR RECIPTS WHEN SHOPRITE FREELY GIVES?WHATS THE DIFFERENCE BETWEEN COMPLIANT BUSINESSES AND THE PEOPLE IN FREEDOMWAY AND KAMWALA?I THINK THE ZRA COMMISIONER IS SLEEPING!
The picture is very close i hope my aunt will not feel jealus.
Ba lusaka times the same picture sure?