prevailing global economic crisis might reverse the hard
earned economic gains which the African continent has achieved in the recent past.
Dr. Fundanga said Africa has been adversely hit by the economic crisis, whose effects have quickly extended to the real economies, resulting into massive job cuts.
He said the global economic crisis has erased the economic growth rate of more than five per cent and a surge in investment flows in many sectors.
He said this today at a senior policy seminar on the effects of the global crisis that was organized by the African Economic Research Consortium (AERC) in Lusaka.
Dr. Fundanga said the global crisis has seriously affected the manufacturing industry, which has resulted into a decline for the demand of manufactured goods.
He said the decline in copper prices has resulted in the decline in export earnings and a change in investor sentiment towards investing in emerging markets.
Dr. Fundanga further said that the global economic crisis has affected the direct investments because donors have suspended their investment flows in Africa in a bid to save money and improve their liquidity for working capital in their countries.
He has however called for diversification of the economies to enhance competitiveness by increasing expenditure on infrastructure and social services in order for the continent to move forward and address the negative effects of the global economic crunch.
Dr. Fundanga said the continent should come up with a response framework on the financial system that will help reverse the effects of the crisis.
Speaking earlier, African Economic Research Consortium Executive Director, William Lyakurwa said the global economic crisis might put millions of Africans into poverty.
Professor Lyakurwa said sub-Saharan Africa will be the hardest hit by the current global economic crisis and will also be the last to get out of its grip.
He said the global economic crisis will have far-reaching consequences on the African continent, affecting the local investment, export earnings, tourism, remittances and aids.
ZANIS/GP/KSH/ENDS
We already know that. Just put the solutions to the table please.
I think Prof Lyakurwa is exaggerating.Is he saying the impact on Africa will be worse than that on Iceland/
Jamaco, aini! fimo fine lyonse? We all know that. Whats the way foward?
As others have said, this is a well known fact. Please tell us something we don’t know yet.
Tell us something we haven’t already figured out for ourselves, like how to avert further damage to perceived economic gains. And please don’t tell us the answer lies is taxing us more or making us consume what we produce at higher cost compared to those that buy from us (as is the case with electricity).
Same economic stories/crisis day in day out. No solutions in sight.
Solutions you people is what we,for how long are we going to be defining problems,conceptualising things?Be practical at least ,try to avail possible solutions if you cant find the solution.If this problem was scientific we could have atleast approximated a solution for it.Sometimes I wonder if we really need economists,because or they seem to know is theories which fail to convert to reality.
solutions is what we need
Bwana Governor, Please give us hope not despondency .If you are fully aware of the adverse effect of the economic crisis, how then did you support the 66% increase in electricity tariffs ????
Prepare for real hard times ahead.There is no solution.Well come to 1984.
The world economy was demolitin just like the Twin Towers were brought down by controlled demolition.Please understand this crises was engineered.This financial mess has got to be the greatest engineered bank robbery in history.
Really Fundanga, just a few days you were busy affirming the 66% ZESCO tariffs rise despite your full knowledge of this world economic crisis you are expounding. Are you not contradicting your self? Can we take you seriously? I doubt!!!!!!!!
whats up guys.i was very impressed with Musevenis speech today.he was not shuy to tell of the europeans.he really hammered them.that guy is nice to watch.no wonder the common wealth gave him chance to host them.he has courage not courage yaba mugabe
I dont believe this guy has a doctrate. What a joker. the same guy talking about a fall in demand, is the same chap calling for electricity tariffs to be increased. Capacity building, if he bothered to study while at Uni, means increasing demand for product both at home and abroad. Has he calculated the effect an increase would have. Clearly there isn’t an ounce of common sense left in him or his advisors. Grey matter is that material between his nasal passage and the stuff falling out his nose. I’ll help you Caleb; fire all your advisors, stop pegging Kwacha with the dollar to provide price stability and reduce interest rates to stimulate the economy. Hola back for some more tips!
The governer should surely be last to say that.We need more lpeople ike Museveni,i was impressed too.
Dr. Fundanga is now sounding like a problem record. Why must we look up to the West for solutions. First and foremost if you look at Egypt, did you know that 60% of its international calls from Egypt are made to the rest of Africa and especially COMESA region. Zambia has more than 90% international calls going to USA, UK, South Africa and China. COMESA has a population of more than 400m people. This is a better market to focus survival on. We must discuss copper price at regional level and formulate our own exchange house and forget the LME. This way growth will continue. Egypt and South Africa have capacity to produce quality cars, thus they do need the copper. We can then do other prodcution of copper home in the long term plans. Lets take a leaf from Dambisa Moyo, we dont “DEAD AID”.
We do not need that DEAD AID. We are the giant of the world. Problem of our leadership is that they panic. They reduced taxes on investors and nothing on the local employees
Interesting data. On “Dr. Fundanga said the global crisis has seriously affected the manufacturing industry, which has resulted into a decline for the demand of manufactured goods”, I believe this analysis is misplaced. Let us manufacture goods we can sell to our people and our neighbours or Africa in general. We do not need to worry but look around for activities we can do in order to serve our people and have a working economy.
We as a Nation have depended too much of advice from foreigners but this is our time and this is our moment to do things the Zambian way while we appreciate the advice from foreigners but make our own final decisions to implement what we deem fit.
Tracey Phiri who told you the main compound in cars is copper. Se ma galimoto ya ma wire.
Maestro good comment. Indeed we shouldn’t take everything they say at face value. However, looking at the west’s economy i think Zambia can emulate certain aspects that will help deliver to the people. Example on major economy, ie UK, USA, Germany or Japan privatise major state assets. On the flip side when they do, their citizens are protected by price stability supported by different players competing in the market. An example is electricity. There are several suppliers so one can’t wake up in the morning and increase prices by even 25%. A reinforcement of this is parliamentry comittees who would swing into action to protect locals.
Example on major economy, ie UK, USA, Germany or Japan do not privatise major state assets!!!!
Facts are facts and comments are free, Governor Fundanga has erred,he simply aught to give an apology to the Zambian masses… We might give him a diagnosis ….
Hello bloggers!.Maestro You have raise a very important issue.We as a country have really depended so much on prescriptions from the Bretton Woods institutions whic unfortunately serve Western interest.Look at Brazil,Its only BRIC surviving the meltdown coz it has a strong domestic market which keeps its economy moving and for a long time have defied the IMF/WB prescribed policies.What we need is to create a strong domestic and regional markets and not the exporting of copper to the west which has been disappointing.
Mr Fundanga. What were these gains and how are they being reversed.
An economic boom based on high copper prices will certainly decline when those prices fall. It’s like the effect of share prices. So these cannot be said to reverse. When mealie meal prices rise and fall, no one talks about gains and reversal of gains.
We expect the governor to state what Zed gain and how they made those gains during the boom years. There ought to be real fundamental gains. It’s like when you are a trader and you suddenly make big profits for a time, your real gain si what you invested that profit in, something that does not depend on the continued high profits to support it. It’s like using that money to send your kids to better school. Your gain is the quality of education they have received.
As for the Professor, we expect better from him. Professors are supposed to be brain boxes, not chatter boxes who say the obvious. There’s nothing new in what the Professor said, any enlightened mind already knows that. But the Professor should come out with well thought and analysed contributions. Being a professor is not just an academic qualification. It comes with responsibility in society, to be a think tank, a person who dedicates his time to researching and thinking through situation so that he can offer deeper insight into the causes and effects of the subject topic. The same goes with the position of bank governor. These two roles are the highest in academia and banking. The calibre required for the need to be exceptional, not mediocre or average.
#25 I endorse the comment.The professor was suppose to do more and not the static statements he made.
A Professor or bank governor should not be quick to open his mouth. They should only talk when it is necessary and have a sound contribution to add to the ongoing debate or subject. They should not wallow in the average and mediocre. Their offices, and what we pay them for, is to offer solutions, insight and guidance. We do not expect them to be on the complaining side. Its like being head of state. Your role is to lead and solve problems. These office go with respectability based on what they do for us. It should be that when a BOZ governor speaks, the whole nation listens. And when a professor speaks, society to stand still. That the “Big Men” are now talking. I think the governor has been too much in the press of late, offering nothing. Thats degrading.
What the Professor was saying is tantamount to shying away from the problem and the Professor as a policy maker should know that he has the responsility of restoring confidence in people,assuring them of recovery and not being pessimisstic and preaching prolonged crisis.
hmmm