In as far as economic management is concerned, it cannot be denied that the current Government has performed to the highest expectations.Within a period of seven months, Zambia’s inflation rate has reverted to single digit.
In fact for much of 2006, Zambia had maintained single digit inflation until inflation levels broke into the double digit brackets in February this year. Lending rates have been at one of their lowest ebb for a long time and the Kwacha has stabilised to the extent where confidence in the currency has been restored. In addition, the Government has put into gear far-reaching investment incentives that have increased the country’s profile as an investment destination. This commendable performance by the Government has been acknowledged by even the International Monetary Fund (IMF).
The IMF has projected a rosy picture for the Zambian economy under which growth would be above six per cent and would be maintained for the medium term considerations. For such an intricate and highly sensitive phenomenon as an economy, which is susceptible to the most miniscule interventions from even non-strictly economic factors, this indeed constitutes no mean feat for the Government.
Zambia can realistically sustain the current high wave on which she is riding economically for the seeable future. All the positive showing that the economy has registered so far, aside from the Government’s creation of a conducive atmosphere, has been through the participation and support of all players in the economy. This is crucial, especially now that Zambia’s growth should easily surpass the current levels.The input and effort of each and every player, regardless of their positioning in the economy, their activities and line of business is important to the overall positive performance of the economy. Take agriculture for instance. As the inflation statistics revealed yesterday, non food inflation has played a big role in the overall reduction of the inflation rate for September. Going by the standard economic rule of supply and demand, it is obvious that the healthy supply position for food right now has had a huge knockdown effect on food price levels.
At the same time, the opposite is actually true. Abundant and relatively cheaper food supply is an important contributing factor to the lowering of inflation. Each season when Zambia has had to import maize to cover the deficit has turned out to be a difficult one for the price level and inflation has been difficulty to pin down. A concerted goal for agriculture in the 2007/2008 season therefore, should be increased production. The doubling of efforts will also be expected in other sectors including manufacturing, particularly for export.
The financial sector should also gird up to ensure that capital for growth in the various sectors of the economy is readily accessible.
Times of Zambia
Do those figures also reflect what is on the ground? Are people still finding it hard to buy mealie meal, Kapenta, cooking oil, sugar, bread and vegetables? Or can then easily afford this? Are these figures reflecting empowerment of Zambians from poverty, able to own there own homes or are the powers that we please relaxing the spanners so that we can have the current report because we danced enough to the prescribed tune that Zimbabwe has been denied? Perhaps it is a good beginning and we will wait to see the full benefits that have to be full pockets for indigenous Zambians and not just “Bamwisa.”
I have always wondered why only poor folks complain about how “bad” the economy is. I am in no way trying to make fun of anyone, i am just seeking answers!!
On paper these indicators are so good and a good sign of a progressive economy. How can these indicators be practically transfered to a Zambian common man in Mwansabombwe,Shang’ombo,Mutondo,Gwembe and and all over Zambia. The Govt is trial for putting this economy to reflect in the livelihood of the Zambians. Fundanga was in the news urging banks to lower the lending rates and also increase accesability to lending services to SME and marketeers.
Good Job Magande but rememeber you are owe the Zambian people macro economic development.
Born rich, You can measure the effectiveness or growth of any nation’s economy by how much the nation looks after it’s poor. In the West most people are poor by choice because they chose to waste what they get from the state on drugs & smokes etc. In Africa, most of our poor are not poor by choice. They are poor for lack of opportunities and resources.so, for as long as the poor’s basic needs are not met, they will continue to complain. Sometimes, they’re empowerless to complain. Hence, the need for the rich with a heart of compassion to hear their cry & do something about it. It’s good to hear that the future of Zambia is bright. May our nation raise up nationals like Mr Maponya the owner of the new Soweto’s ‘The Maponya Mall’. People of vision will always fulfil their dreams no matter how long it takes. May Mr Maponya’s action that takes development to the poor inspire us Zambians to know that with vision & determination, we can acomplish anything; for all things are possible…
Hats off to Magande, Fundanga, Mutati & Co. Yes, the rich-poor gap is still gaping, however, Zambia’s middle class is growing and indeed becoming wealthier. I have no indicator to support this, but one only needs to go into shops in Zambia, and see that their buying power has increased. Their starndard of living is generally higher, people are buying cars and enjoying things they did not enjoy in the 90s. I feel a very positive vibe emanting from the motherland.
Yes,it is true to say Zambia’s future is bright but it will be naive for us to start thinking that the economy is currently doing well. Let not those who are financially sound with the economy working in their favour get up to mountains and blow their trumpets and announce to the whole nation that all is well.Mind you every society has classes. For example,in our country, there are people up there and people on the glass root who are mainly exploited, abused in terms of there work conditions and cannot offered three meals in a day. One fellow wanted to find why the poor always complain. I feel this is not fair question and it is useless to ask questions of which you know the answer. Who doesn’t want to live a better life? who doesn’t want his children to eat health nice food and go to better schools. Sometimes I wonder if we have economist with data on their finger tips. As far as Iam concerned the CSO has even failed to calculate the econmical growth rate of our country. continued…
…Continued from #6
The past two decades Zambia’a economical growth rate has been running on the negative side and the latest figure we have now stands at 5%. This is a speculative and political figure because the CSO has no ENOUGH TANGIBLE DATA for them to calculte the economical growth rate of this country. Everything is just speculations we dont even know how the economy is performing and who is benefit whether it is the Zedians or the infestors who have infested our economy. We need to close the gap between the rich and the poor by making the kwacha to appreciate agaist the dollar sigificantly. But this will remain a dream as long as the Zambian economy remains in the hands of foreign infestors who are always looking for a lions share. Infact, this time around, we would have been enjoying a huge apprecaition of the Kwachs going by the ever icreasing copper and cobalt prices. You need to be a mining engineer. metallurgist or geologist to understand how damn rich this country is
Bloggers I have a different concern. When I heard about Mo Ibrahim Index I was so happy and said see this african our real making. So yesterday I forced to watch a report over Raunda which is ranked better Zambia on this index. It was shocking to see that children still die of hunger. My question do we have such cases in Zambia where children are dying of hunger. This is a report how the MDGs have progressed after brought in force in 2000. I saw actions being implemented which Zambia did in the 1970s under humanism. Are these indicators real reflect the true economy power of a nation or are political motivated.
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#5 An increase in the people’s buying power is not a significant measure to pour kudus on government. It is just the lifestyle of Zambians.Even when they cannot afford things, they will strive to buy that which is fancy and beyond their capability to maintain.Ask yourself if any of these people have sufficient retirement savings, readily available cash for medical/health emergencies.The answer would be a resounding no.These figures are good only for the paper they have been printed on.How many people in Zambia can afford three meals a day or even maintain a balanced diet.What is the actual unemployment rate in the country?
#10 KCC. KCC you have a valid objection to my argument. However, I am calling things as I see them on the ground. And that is a good place to start, as I don’t have data and statistics that Gov’t has. Zambians will always have ‘zimya neighbor’ attitude, but the reality is now they have the MONEY
#7 mwinepabo. Are you an economist? I’ll admit: I’m not! But let me share my little knowledge. When a country declares that the growth rate has reached x%, it is not for the sake of bragging. Economic growth is defined as a nations capacity to produce goods and services or an increase in real GDP terms. It is easily measured, as data on exports and imports is collected by the revenue authority. We cannot argue that economic growth rate is increasing, people spend years in school studying economics, and I’d like to trust them. True, the benefits might not yet have trickled down to average Joe Phiri. But what I’m trying to say is LETS CELEBRATE THIS SMALL VICTORY AND FORGE AHEAD.
I’m not clear in my second paragragh.
“We cannot argue that economic growth rate is increasing, people spend years in school studying economics, and I’d like to trust them”.
What I mean is the 5% given to us is not speculative, people did their number crunching, that is their full-time job to calculate such figures. My job is to train as an engineer; I have no degree as yet, when I have a degree it is BScMechEng. As such who am I to argue with a specialist on national economics? If a learned person with a degree says 5%, I will accept. What does Gov’t gain from giving twisted figures? Those are Mugabe-esque tactics.
Look gentlemen, tripple digit or single, people will not eat these economic indicators. What people want is food on the table.I remember in 1998,Zambia had reached every benchmark set by the World Bank and IMF, according to the then Finance Minister,the late Ronald Penza.Inflation was very high at the time and unemployment was equally very high.Maybe compared to this time, unemployment has doubled.People do not want to be told that the economy has improved by political sympathisers.They need jobs, good health care, education and improved infrastructure.Zambians are tired of cheap politics.
I totally agree with number 13 Doni, he’s a great thinker. Don’t tell us about the single digit inflation, give us jobs,good health care good education and better infrastructure.Magande or fundanga i don’t agree with your economic indicators period
You cannot boost of one digit inflation after getting satified with food you ate at Manda Hill. We cannot afford health insuraces, Pensions, good roads, education. Is not recently when retirees were complaining of getting K33 000.00 per month packages. You dont even have CTs in hospitals. The CBU is closed because of food shortages. Mr. Magande and Fundanga be careful of your statements they will repercate. Be able to read the minds of Zambians.
There is no doubt we are on course regarding economic growth. The question of single inflation digits is academic and debatable. We also have to remindour selves the simple definition for inflation.”A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services”. While we may superficially satisfy the academic qualification for a single digit inplation, one wonders what role the over 75% unployment rate plays in determining the economic growth. If 75% of the adult Zambians are unemployed, it surfice to say have no income. then we are basing our archivements on less than 25% of adult population. In retrospect 75% of the population have no purchasing power, which means goods will be available for the 25% to buy whenever they feel like. If GRZ is satisfied with these numbers then we need to impeach all elected politicians and…
fire all policy makers like PS,directors etc. You can say you over 75% unemployent and boast of single digit inflation in the same breath.You must either be dangerously naive or purely stupid. Zimbabwe is ta its worst. but their unemployment index is at less than 50%. So what are boasting about? most of our people languish in povert and disease. We have to learn that the stenght of an economy is directly related to purchasing power of its citizenry. Let us not fool ourselves. Things look much better now because the copper prices. the sad part is that we do not determine these prices.In agricalture we had a spill over from Zim . Lets learn to face facts, only then can we develope policies that will sustain the growth we are experiencing. The other thing i have noticed is that there is no effeort in identifying alternatives to mining. kalifungwas visit zambia initiative is stack in reverse gear. If anything would happen to the copper prices we would have 80% inflation in a day.
#17
“kalifungwas visit zambia initiative is stack in reverse gear”.
I think you are not up to date with the success of the Visit Zambia Initiative. The latest stats from ZNTB show that tourist arrivals have grown by 13.3 percent in 2006 compared to 2005 when there was another increase in tourist arrivals. If you have access to the Post you will notice that Fred Mme’mbe’ Post did a whole editorial on the success of tourism in Zambia. It is perhaps the only area of the economy were we can say levy’s admin has scored some form of success. However, the issue here is to look at who is actually benefiting from the tourist arrivals.
#18 there are tsages in developing a campaign strategy.When you start a campaing you dont see much in the result index, as the campaign reaches maturity you will see an increase whether you are still highly invested in the project or not. There after either you will sustain the growth or you will experience a sharp decrease in numbers. What you saw on “06 could be spill overs of the efforts Kalifungwa put in. If you follow the trends , the visit Zambia campaing which was on international news is not there anymore. We have not heard of Vera or The tourism minister canivas countries like USA or EU to promote the drive the way Kalifungwa did it. I still maintain there is no sustainable efforts to maintain the momentum. The Post is not the right source for “objective” info.
#19 I think you are judging the visit zambia campaign based on media hype. Just because you have not recently read anything about the visit zambia campaign in the international press does not mean that tourists have’nt been coming to Zambia. The reason Zambia is experiencing a large influx of tourists is because of the down fall of Zimbabwe. Before the mugabe issues in Zim, most tourists used to go to Zim when coming to view the vic falls but since Zim has been getting bad press especially in the western media, most tourists have turned to Zambia as an alternative because the Vic falls is truly a tourist puller. The only thing I would agree with you is that perhaps the Post is not the right source for objective info. However, their info was taken from ZNTB. Unless you have evidence to show that ZNTB stats are cooked up, I think that you should update your self on the success of the tourism industry in Zambia. The Visit Zambia campaign is the only real success in levy’s admin!!
#11.I know you are entitled to you own opinion but when we are talking about national issues that affect everybody, let us not narrow our view only to the minority class. If we were to cerebrate the little “victory” you are talking about how many people in zambia can cerebrate that. People are not interested in hearing confusing economical terms and figures which they dont understand. But you and I should rejoice when we hear that the inflation figures have gone down and we see a corresponding reduction in prices of goods. Why should the goverment boast about single digit inflation when majority of the people are living on ‘pamela.’ When the goverment annouces a +ve economical growth rate we expect the effects to trickle down to the poorest of the poor. Without this effect all the staff about single digit inflation and +ve eco. growth rate becomes meaningless.Be careful with politicians my learned brother and trust them not because they can build bridges even where there are no river
The workings of government bureaucracy was once famously described as a huge beast which, when kicked in the tail, only registers the sensation in its head two years later.
This analogy can be similarly applied to what is happening to Zambia’s economy. Frankly, I don’t know how change can occur overnight. Complain as we might, the tide won’t turn as soon as we like. #21 You are right, people need jobs, food, water, housing etc. But wealth redistribution is not as easy as it sounds. Do you have any bright ideas to speed up the process?
As usual Zedians always naive, wake up people. it’s the same sweet talk they gave us when they colonised us 40 years ago. i wonder whether God made a white man superior to all of the human race or its just our stupidity!
Well I am just surprised to to find there are still some people with a mediocre kind of thinking like #23. This is cheap kind of thinking that can not be tolerated in this generation.
what ever the economic indicators are. Create good paying jobs for the masses and you will solve a lot of problems.
& the mutengo of fuel & wheat goes up
Actually i think you can boast of single digit inflation as it allows for investor confidence and allows for a steady economy. I am however not really sure how this is reflected on ground level. Obviously the banks in Zambia need to lower rates, also, the government should clearly outline its monetary and fiscal policies to benefit the needy. Hats off to our financiers, but we still need to make progress.
I am one of the few Zambians studying economics abroad.
Credit where its due, well done mother zed.But again its upon us the expariate lot, look back home and invest our monies there now.If you can afford buy shares LSK exchange, buy trators for our relatives in villages,build ur home, buy land, etc.We will helping not being arm chair critics.Lets walk the talk guys thats our home.bigups to the new deal govt.
Those waiting for jobs to be created by the gov’t will be waiting for a verrry long time. Remember when magande early this year said it was not govt’s job to create jobs for Zambians? Do you think a politician with such a mindset can achieve single digit inflation, I don’t think so. Also just last week, another politician, mulongoti, was intimidating journalists that if the right negative things about govt he will fire them from their jobs? How can we then trust anything that the public media produces as “news” such as the single digit inflation hype?
This blog is beginning to frustrate me.
Why must we complain so much? WHAT PROACTIVE STEPS ARE WE GOING TO TAKE, SEEING AS MANY OF YOU ARE DISMISSING ECONOMIC INDICATORS AS UTTER BULLSHIT?!?!
You in diaspora are hypocrites, you say Govt isn’t doing much to help the average Zmbn. What have YOU done for your brothers? Got your degree and settle abroad, enriching yourself?
Talk is cheap. WHAT HAVE YOU DONE FOR ZAMBIA TODAY????
# 30,I’ve paid my many taxes to this govt.Remember last year politicians esp the MMD were celebrating the appreciation of the kwacha in July thru Sept & a lot of hype bout it.Today were z the kwacha?
The govt does not create jobs “witness”.They formulate policy for job creation, get it.You can be an investor as well, stop waiting for a white man.If you open a business and employ ur realtives, you have created jobs.Th figures govt releases shows we are glory bound.Lets stop being cynical, single inflation figure, reduced rates for bank loans soon, housing will be better thro bonds.Thats what it translates to the ordinary zed.I’m buying a hammermill for my village as they produce maize like crazy.thats what I’m doing right now.
Congrats to Levy for receiving his doctorate from Harding university. We hope that Levy will not just feel comfortable being called Dr Mwanawasa (as ZNBC has started calling him)and get relaxed from fulfilling his vision to lift the living standard of the poor who’re special on God’s heart. Let him & his team work hard & make sure that every Zambian has at least bread and butter (i.e. nshima or food) on the table each day & not going to bed on an empty stomach. KK promised every Zambian child an egg for breakfast. We need every Zambian child to have three decent meals meals each day. Only then will the nation really rejoice when politicians & economists talk about economic figures. It’s good too that Harding wants to set establish a uni at Namiyanga where they are actively involved. God bless the three big mission churches in Southern provinces who’re setting up unis . We need other mission churches to do the same in other provinces to help GRZ. More private unis are needed.
#32. Miyoba I like your spirit. #31 wanzelu. You are right, there was too much hype about appreciation of kwacha.
However, I’d rather have a weak kwacha against foreign currencies with low inflation. Than a strong kwacha with no local buying power. Get it? The kwacha has returned to its original position… so what? i get less rand for my kwacha, but if food and other essentials are easier for my mother to buy now, who’s complaining? I just drink those same tuma-rands, like I’m going to do tonight.
This blogg is full of cadres who doesnt see anything wrong.Br Miyoba it is not easy to find land in zed in a nice areas.pipo buy these plots for less and sell them more than 1000 percent.Eg mass media K120-K150MILLION For a small plot which was bought less than K50,000.34 it is easy for you to be trigger happy about the economy indicators those are on papers. If 75 percent are not employed and 25 are in employment cant you see genuine concern for those brothers and sisters who have finished schools,trainings and cant find jobs.Yes you can boast over having your mom having disposable income. Your attitude shows you dont care about the millions living in total poverty.I feel pity for those who want to use their acquired gifts to sustain and help those who need most but cant due to pipo like you who are happy with lavish lifestyles on expense of others.I have got a well paid job but what brings me the wound home is the inqualities and uncaring attitude by pipo they elect.
To most people especially in the government the economy is measure by GDP. What we must not forget is that GDP does not capture household, Eagle Eagle, rural activity and the common informal sector. Can you convince me that the CSO data covers the whole country or they are just concentrated in the cities. If the do cover, then we are headed for a bright future but if not then we are just conforting ourselves without hope.
Yes the leaders economy has improved but the majority of the people are still in distress.
Nothing but Zambian told. You guys are interesting to read. A simple man like me will only appreciate all this talk about single digit inflation when I start to see water running again in those taps which have become homes for malisos, when electricity is uninterlaputed, (it goes off even when we are hosting big meetings (OAU/AU, SADC)), when all eligible school going children have a place in schools, when I can use the roads when I want to and not only when it doesn’t rain, when we dont have to depend on the rain for our food security, when we can determine the price of our copper, when the ratio of teacher to pupil is normal (not the current 1 to 55-70), when accomodation reaches the minimum acceptable standard, when there will be food on my table, should i go on and on?