Bank of Zambia (BoZ) Governor, Caleb Fundanga, says Zambia should increase its focus on economic diversification in order to achieve the set targets in the Vision 2030.

Dr. Fundanga said government and stakeholders should now concentrate at improving the viability of agriculture and other sectors apart from mining in the development of the national economy.

He said there is need to improve productivity in agriculture so as to increase agriculture products for exports to the international markets.

He said Zambia has the potential to produce cereals and other grains such as rice, wheat and maize for export.

Dr. Fundanga was answering questions from Journalists during a press briefing held at the Pamodzi hotel Lusaka yesterday.

He said irrigation farming is one reliable option for increasing productivity in the agriculture sector adding that it should encouraged in all parts of the country.

He said the Central Bank is working hard to to help improve the microeconomic stability through reduced inflation and interest rates in the financial sector.

Dr. Funadanga advised Zambians to invest in various sectors of the economy in order to effectively contribute to efforts of reducing poverty and securing national economic growth.

Dr. Funadanga cautioned Zambians to desist from entrusting the investment in the economic to foreign investors.

“Let’s do away with this syndrome that funds from abroad will develop Zambia. Then where are our human resources, expertise and knowledge. I call upon Zambians have the spirit to do things for themselves to develop this country. Agriculture is more profitable and it has the potential to replace mining,” Dr. Fundanga said.

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57 COMMENTS

  1. Fundanga, i like that statement.

    “Let’s do away with this syndrome that funds from abroad will develop Zambia. Then where are our human resources, expertise and knowledge. I call upon Zambians have the spirit to do things for themselves to develop this country. Agriculture is more profitable and it has the potential to replace mining,”

    Its really good to think in those lines.

    “Teach a man to fish or give him a fish”, something Zambians should think about.

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  2. Fundanga,good governor,great mind!Zambian’s especially those in positions of influence seem to be very good speakers,but it’s time we put our hands to the plough so that we can see results.I mean in talking about economic diversification GRZ in 2001/2002 was talking about winter maize etc,spent billions but that project/idea soon died away when we started having good rains.We need to plan ahead with these changes in weather pattens we need as a nation to grow these cash crops all year round so that we could be having enough for home & export.We have a lot of land which with political will we can always even in droughts have more than enough food stocks.The magic word is PLANNING!!!!!!!

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  3. During my sec school days in the 80’s, we were taught that copper was going to finish one day and that the country needed to diversify the economy. 20 years later, we are still pondering on the same question! what deliberate policies has the govt put in place to diversify. Agric policy is good but requires further robust implementation to propel the country into a bread basket for the continent. However, in the area of science and technolgy, we seems not to have any serious policy and strategies to promote manufacturing by Zambians! We can make money from agro activities but only to use the money generated to buy plastics!! That is shameful and pityful!

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  4. Nice statement from Fundi..but let’s be serious if we want to develop our country. Government has announced that it will be issuing mining lisences to foreign infestors from June. CEEC and Fundi are watching while Govmt still pertuate the same ‘musungu’ or china-man is the best. Govmt must grant mining licenses to Zambians who can find partners -local or foreign. Please CEEC wake-up and address broader issues other than concentrating on drawing guidelines on how to distribute CEEC funds. We’re tired of these ‘good statements’ from Gomt. We need results!!

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  5. Mwanangwa,

    ” During my sec school days in the 80’s, we were taught that copper was going to finish one day and that the country needed to diversify the economy. ”

    And that Zambia needed to find it’s ‘competitive advantage’. 🙂 Now you know what I think about economic theories.

    To anyone but a (neoliberal) economist, it doesn’t make any sense to destroy your own producers, by opening it up to heavily subsidized imported goods.

    Let’s forget all about the mines, which any right thinking individual would say are the economic lifeblood of the country, and let’s start searching for our ‘competitive advantage’. Result: the Kwatcha depreciated from 113/$ in 1991, to 4800/$ in 2006.

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  6. He puts a lot of emphasis on integrating supply chains and creating synergy between Zambian producers, to keep as much production inside the country as possible – instead of exporting raw materials (which is the same as exporting both jobs and wealth).

    Which is the weakest point about the support for Foreign Direct Investment (FDI) – that there won’t be sharing of profits or paying of taxes by foreign companies, but that ‘it will bring jobs’. FDI used that way is the worst approach for creating jobs.

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  7. The BOZ chief’s statement, though too wide, is right in every sense.I always lament the lack of a nationally coordinated SMART (S – specific M – measurable A – attainable R – realist T – time bound) plan for achieving developmental goals in Zed.It’s high time we made and have in motion a smart plan centred on locals to diversify our economy.

    A thought…with so much copper why don’t we have a Zambian firm manufacturing bullets?The market seems limitless.I tend to think we gat the manpower and the means…bullet making is no rocket science…just a thought.

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  8. Dr. Fundanga do you mind standing as one of the presidential candidates in 2011? You have very bright ideas but you seem not to be helped by the people at the top. I saw the other statement in another tabloid where you mentioned that if our country had invested in electricity long time ago Zambian would have been exporting electricity to other nations instead of importing and having power rationing. The bible says where people have no vision perish. We need more Fundangas who have a visionary mind in order to develop this nation. It has the potential of becoming the bread basket of southern Africa.

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  9. “Don’t give me fish but instead teach me how to catch them”
    Interesting thoughts!!!!!!!!

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  10. Fundanga is a smart bloke. this guys needs to run for statehouse in 2011. he seems to have a record to achievements and his defo a ‘different leaf from a diffrent tree’.

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  11. #12, No, what do they do? I hope they’re into bullet making. We need them operating on a huge commercial scale.

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  12. On another blog i mentioned that this crass has an agenda to stand in 2011 that notion was dismissed as mere speculation, now, again this ambitious fellow has come out and held a press conference on the pretext that he is speaking in his capacity as BOZ governor…Bullsh!t…. he is not doing his job but clearly campaigning to have his name out their in ambience he is already resigned to the fact that levy is out the door, he is now jumping on levy’s legacy project the ‘2030 vision’ in the hope that levy will give his backing its ridiculous he should just continue punching numbers on his calculator and count how much money zambia is making as a result of magande’s good economic policies,

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  13. /cont…. these tuma diversification policies he has got are good however he should lend them to an aspirant who has more gravitas politically, a son of the MMD politburo notifye ukulabosa behind that big table at BOZ.

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  14. give farmers training and other agric skills and development funds. The EU gives its farmers subsidies to curb hunger and inflation

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  15. Being smart is no passport to plot 1. why do we still use thousand of kwachas when the three zeros on the kwacha can be dropped! what about the financial sector i bank my money into an account where the interest is lower than the bank charges!!!!!i thought the bank should have had a muiltiplier effect on my initial investment. I appeal to fundanga to deal with such issues.

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  16. to continue as already been stated this semon has been there all my life time…..implementation baba is the problem. We know Mongu and the other plain areas such as bangweulu can be huge producers of Rice , we have plaenty of land , rivers etc what have we done! nothing, we have more animals in our parks ! far much more than Kenya but can we compare with forex Kenya is getting from the same! what about cattle! bostwana should not even cough we have more water and grass , but can we compare!!!we need to implement yayayayaya

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  17. Let him do his job as BOZ chief. It does not mean that whoever propounds good ideas in certain areas of the economy then he must be encouraged to vy for plot one. Zambians when did we start thinking like that? I feel he is doing well at that level and that is fine for nation and we appreciate that. We need such personalities like him in strategic areas like BOZ.

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  18. #15 what’s wrong with Fundi standing 4 presdo, isn’t he Zambian like you and everyone else?
    If he has presdo ambitions better we start analysing him now and hear what he has to sell about himself.

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  19. The one word that I find sickening when it comes to describing Zambia is the word “potential”, I hate that word because I have been hearing it all my existence. We know what we have in terms of resources, we know what to do and have the human resources to do it, we know our monetary and fiscal policies are not in tandem, we talk and talk about how it is supposed to be, and yet we continue talking about ‘potential bread basket of Africa’, ‘potential energy giant in the region’, potential, potential, potential…sickening, sickening, sickening! When will it ever end?

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  20. This is the best statement I have heard from a Zambian Bank Govonor in so long.MAYBE EVEN THE FIRST. Ladies and gentle men, lets all try to wake up our 90% of the people and encourage them to work hard. They hardly work!! To our upcoming entreprenuers, there is not time to waste your money and resources on lavish spending, buying rounds etc.This diversification!! Ask yourselves, How can I grow my business and employ someone. A nation is built by hardworking people!!

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  21. As for me i have heard this before but still it is just one of those statements which are said without being implemented.Actually it is not only in educating the farmers and expanding the agriculture sector but it is about creating an enabling enviroment for Zambian entreprenuers. the government should put measures that will favour the local people.for example subsidise some local biz,buy services from indeginious peoples companies etc. this will make local people participate in the local economy and result into a formidable Zambian economy.

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  22. #23 What have you done yourself? I would be interested in hearing your input practically to the Zambian economy. You may be one of those people who are good at criticizing and yet doing nothing practically.

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  23. am into charcoal burning and thanks to Zesco I have diversified and able to send 5 of my children into school for the first in my business. Thank you Mr. Fundanga for the thoguht of diversification and Zesco for the Load Shedding, please continue giving us business.

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  24. Analyst,

    You are right. There has to be a connect between potential and achievement. What is needed is someone with the right vision for the country. The problem has been is that the development models have been wrong. The last 8 years have been spent achieving macroeconomic goals like single digit inflation, and other goals demanded by the IMF banker/economists – that is the problem.

    There has been no vision or plan that puts ordinary Zambians at the center of the economy. The obsession with ‘foreign investors’ is a symptom of that. Combine that with the neoliberal ‘free market’ ideology which does not protect local entrepreneurs and does not invest in infrastructure, and you have a

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  25. recipe for non-development.

    Zambia has millions of subsistence farmers and marketeers – put them at the center of all thinking about the economy. Help them step up the scale of their business, and they will accumulate wealth and employ millions more. Do everything to help them do business – hard and soft infrastructure (roads and bridgets, as well as business support systems, education) low taxes, financing.

    Let’s have more vocational education, and let’s make it possible for people who have completed that, to get into college. Let’s have easier and more secure access to land for farmers. And let the government build infrastrucuture, with the help of the National Service, the army, c

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  26. chiefs, and the unemployed.

    Only 3% of agricultural land is under irrigation – 97% of land depends on rainfall, limiting harvests to once per year. That has a massive growth potential. Lots of seasonal rivers should have dams in them. Flooding should be a thing of the past. Think of the recent floods that cost so much in lifes and damage. That is a precious resource that is being wasted. These places that flood should have dams upstream, so the water can be stored and used for agriculture throughout the year.

    Agricultural surpluses should be used to fuel manufacturing. Let’s turn surplus maize into bourbon, sugar, cookies, anything that can be manufactured.

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  27. no.22 xyz: i have no problem with this charlatan in aspiring to become president i just hope he doesnt contest on the MMD ticket because he is an outsider with no political influence within NEC which is dangerous for the stability of our party because we want to adopt a candidate who will not only win us the 2011 elections, but ensure that MMD remains the horse to beat for many years to come and from my perspective Caleb is not that person. This election is not just about having presidential material and waking up with the brightest policies for economic development its deeper than that we need to know which direction our party is going to take after H.E LPM leaves office.

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  28. Moderate,

    Three questions:

    1) How is Caleb Fundanga an imposter?
    2) How is he an outsider?
    3) How is he a charlatan?

    ” we want to adopt a candidate who will not only win us the 2011 elections, but ensure that MMD remains the horse to beat for many years to come and from my perspective Caleb is not that person. ”

    How is winning elections more important than developing the country?

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  29. #29. Good. Some of you guys are saying Fundanga is smart. Doesn’t his statement sound like the KK’s “Go back to the Land”? What makes Fundanga’s statement more credible than KK’s? I had personally asked Fundanga about the economy and poverty in Zambia. His answer was to attack those who live abroad as not knowing what is going on in Zed. He talked about how people are doing fine in Zed. I let sing, then I asked him the last time he visited Kalingalinga, Kanyama, Misisi, Matero and the like. His answer was, you guessed. Never. I pointed out to him that visits 2 statehouse 2 see fello lambas, or to pamodzi hotel for lunch or drive straight home to Ibex, wont give true picture about Zed

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  30. How do you improve Agriculture production when there is no fertilizer,Maize farming is politised,No Electricity from Zesco for irrigation and vast and viable farmlands in Northern Zambia are owned by absentee landlords? Lets get real…We use the taxes from copper and other mineral resources to improve the agriculture sector. Not building shopping malls in Lusaka and Kitwe…

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  31. #35 has forgotten the poor road infrastructure leading to Agriculture production areas and poor marketing by FRA…When the above challenges are sorted out then you can talk about diversfying. Now you are dreaming. WAKE UP!

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  32. #30 Way to think!!

    #34 Does Fundanga know the economic imapct of Zambians abroad in that economy.MY assumption is that there are 1,000,000 Zambians abroad, and each one sends home $300 per year or $25 per month!! That figure might even be more. You are talking $ 300,000,000 a year flowing into the economy!! Thanks attacking Zambians abroad.

    I am not saying that that kind of money can totally develop the economy, but is a considerable amount to assist an economy like Zambia.

    Its like that stupid employer who does not acknowledge all your hard work but is happy with that bottom line.

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  33. Ask yourselves how much you sell the mines to some cheap investors!! They offer you a couple million dollars and you think that is alot!! You gat to be kidding me.

    #4. I like your idea of Allowing Zambians to partner with investors eapecially in the mining sector. We have enough qualified Zambias to help run some of these industries. I wonder our labor department has caps on labor employment certificates.

    And where is our small business organizations on matters like this? Can you get loan from DBZ I wonder. You have to sugar coat some hands, before you even start your operations you are broke!!

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  34. #32 I see your point. To me it looks you are only interested in your party the MMD at the expense of the nation. Sad that we have such people like you.
    #33 Good questions!

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  35. No.39: i on the other hand don’t see ur point however i can tell that u are narrow minded. I am not only interested in my party, i am interested in any zambian who has what it takes to step up to the presidential mantle and there is no one in the opposition party who i capable, more so i cant see any political party albeit organisation that put the juggernaut leadership of MMD to rest. Looking at the questions posted by NO.33 i concede that two of them are good and the other is misguided however i will address them; Q1: I never said he is an imposter because u dont become Governor of BOZ for nothing so that insinuation that he is an imposter has no place for the topic at hand. Q2: He is an

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  36. /cont….. outsider because even if he makes it to the MMD convention’s first round of votes he will not be able to garner enough support to seal the deal for the party nomination besides he was only thrust into the public’s eye after the 2006 elections, yes ppl knew he was the governor but nobody looked at him as presidential material until this debate of H.E.’s successor was brought forward and i am sure he printed millions of kwachas just so that abena malupenga and mmembe could put his name in the papers Q3: This guy talks publicly and brashly as though he has NEC feeding from his pockets when he very well knows that he is a mouse in a pit of snakes.

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  37. The problem I have with the MMD and neoliberalism is always the elitism, which is preventing them from truly developing the country. Unless they start seeing ordinary people as the cornerstone of the economy, both as entrepreneurs and consumers, that is not going to change. They will keep trying to please corporate business and the IMF, of which attracting foreign investment is a symptom.

    At the heart of it I fear, is that they do not want to change the power structure – a population that is too poor to challenge the major party, and a political/lawyer class that lives off the state, while appeasing western corporations.

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  38. But!! Mr “Bank of Zambia (BoZ) Governor, Caleb Fundanga”, you have thrown your computer behind you. Use it man! The pile of paperwork should be on the computer and not on your desk. Your desk should be almost clean. Are you the old fashioned type of manager who gives an impression of working hard by delaying documents that must have been endorsed 3 months ago?

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  39. Fundaga should be talking about monetary policies that have made many Zambians not having access to lending banks. Let him also help reduce interest rates that people can afford to even think of borrowing for investment in agriculture. He is talking about diversifing like it comes free without investment. He should know that saying it so does not make it so. Land in Zambia is not easily accessible, so is the capital. Irrigation equip is not free. May be he is talking about using Shaddufs. Let there be reasonable and accessible rates thru reasonable policies, people will manage to diversify and eventually even those that are not in agric may get attracted.

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  40. I thought this was a blog on the economy and in reaction to Fudanga’s comments. Now we have, HH, MMD, presidential material and all the nosence! Help us!! Save us from this great disaster of ***** thiking.

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  41. BASHIMOLOLWA TA BOLOLWA!! ‘KNOW IT ALL’ DONT LISTEN TO INSTRUCTION. LET ALONE ADVICE.

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  42. 46. Kalos2020,

    This talk of ‘diversifying’ seems too much like the old ‘don’t look at the mines’ line that many politicians ran. It makes me think that Fundanga was a little too close to the mining companies, if you know what I mean.

    And it is obvious what will generally stimulate the economy – easy access to land, low interest rates on loans, and low taxes. And government investment in infrastructure.

    And how hard is it to follow up on government projects, such as road construction?

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  43. i’m also spooked no.45 yashani if HH became president he would change our language everything i am sure he would make it law that every word used whether english or otherwise started with “Ha” for instance the internet would be known as “Hainternet” mining also as “Hamining” and as a result i have resolved that in Ha2011 “HAKAYIVOTELA HEKA HICHILEMA”

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  44. No.50. You are also not fail to think of other people like that.Just contribute to what is obtaining on this blog about the economy as suggested by BOZ chief. When you are dry with ideas, the best would be to retire than exposing your blatant hate to certain people. It is not fair and i take strong exception to your uncalled for comment.

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  45. 51-52: it seems u are a myopic git looking for someone to start an argument with, FYI i have contributed positively on this forum dont try kick knowledge with me, u passed a positive observation at no.49 on no.45 and i concurred with you. By doing so it does not give u the right to put a collar around my neck and reprimand me on my views about HH u are not a fcukin’ prefect on this blog and don’t think u are better than everyone else here

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  46. Pls continue contributing to Fundanga’s economic diversification debate and you will inspire more than trying to insult others. No gain whatsoever in trying to use strong language against others.thanks.

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  47. Thanks Moderate! Coming now to the real issue of economic diversification,it is easier said than done to the expectations of the people. I have heard this time and time and again but no real position is taken on the ground to have it operationalised.It seems most of our leaders at whatever level enjoy seeing themselves before cameras and watching themselevs on TV.The idea is brilliant but can we move in that direction quickly as it will help in addressing the economic ills that we face as a nation. We have all the resources at our disposal and yet still wallowing in poverty.

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  48. boz governor talk is cheap influence politicos to put measures in place ie throw resources tothe vision .we had 3 decades of listnening and reading about diversificaton shoved down our throats by the kk admin.they were riding around in big black limos with grandiose meetings and project whch took the continent in reverse. lets learn from history we have a another chance to make something of ourseves in this commodity boom it wont last for ever lets throw resources so we never have to go with a begging bowl again.men and country loose their dignity by not implementing instead of talking lets be seen and not heard

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