Saturday, July 13, 2024

Govt urged to consult widely on economic issues

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The private sector has urged government to consider consulting other stakeholders when implementing decisions concerning the economy of the nation.

Private Sector Development Association (PSDA) chairperson, Yusuf Dodia, has said the private sector could play a vital role in the economic growth of any country if allowed to give its views.

Mr. Dodia told ZANIS in an interview in Lusaka today that there was need for government to work closely with the private sector when implementing measures aimed at strengthening the economy.

Mr. Dodia, who was commenting on the recent directive by the Bank of Zambia (BoZ) to ban non-residents from borrowing kwacha from commercial banks, said there was need to consider involving other partners in ensuring that the economy was protected at all times.

He explained that BoZ was also supposed to include other stakeholders and have an in-depth analysis of the current economic situation in the country before effecting the move.

He noted that with the current global recession, the central bank should be working out modalities that would protect the economy and attract more investment in the country.

Mr. Dodia further explained that banning of non-residents from borrowing the local currency will negatively affect foreign investment in the country because many foreign investors will find it difficult to do business in Zambia.

The PSDA chairperson noted that for any economy to be stable, there must be a combination of both the foreign and local investment.

Mr. Dodia added that this is why the BoZ should have consulted both the local and foreign investors to come up with proper measures that would not only protect but enhance economic development in the country.

Last month, the central bank introduced the monetary policy measure of banning non-residents from borrowing the kwacha in a bid to strengthen and protect the local currency from further depreciation.

The Kwacha has in the recent months depreciated against major foreign currencies by over 60 per cent.

ZANIS/MM/KSH/ENDS.

7 COMMENTS

  1. So which measures is Mr. Dodia talking about that have been put in place to strengthen the economy? Am I too dumb to see them in the article?

  2. Tony Blair said during his faith and Globalisation speech on 03/04/2008.

    “The forces shaping the world at this moment are so strong and all tend in one direction. They are opening the world up… Economically the world system is ever more dependent on confidence, robust when things seem good, extraordinarily brittle when confidence dips. The world is interdependent today, economically, politically, even to a degree ideologically.The divide, then, is between those who see this as positive – the opening up offering opportunity; and those who see it as threatening and wish to close it back down.”

    WHAT ARE THESE FORCES?

  3. Ba Dodier balefumyafyecushi. BOZ has done a good thin. Why should we leave loopholes for outsiders to come borrow K100bn, not use it for Z’s benefit only to pump it back if they see that kwacha yapena then kwa nkichi bapangomuzulu wa free. It makeso no senso. I doubt if the so-called zambian economists are doin any research which could benefit Z. How about a comparative assessment of the impact of venturing into jatropha against focussing on exploration of oil and gas in our provinces? Then you would be making some sense bwana Dodier so that politicians can see what either of those can bring to zed. That is just one among many things you would do than merely reacting, in fact it is not reacting it is crying that you have not been consulted. Work on something then present it we hear it.

  4. Foreigners do not borrow from zambian banks to invest in the local economy.typical example is that bastard who came with a briefcase company called FLoco who bought KGP.he came to zambia bought the company on hire purchase got loans on top of that and that was it.same applied to BINANI and their RAMCOZ.

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