Wednesday, May 29, 2024

Current policy measures not enough to rebuild economy, it will take not less than three years to see fruits-Chibamba

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Economist Chibamba Kanyama has observed that the UPND administration’s current policy measures are not insufficient to fully bring about desired economic stability.

Mr Kanyama stated that it will take not less than 36 months to really bring a sense of stability to the Zambian economy.

“Given where we are coming from, and the huge uncertainty around the restructuring of external debts, the current policy measures will be insufficient to fully bring about desired economic stability. We will experience some low lying fruits such as stability in inflation and marginal economic recovery but not much,” Mr Kanyama stated.

Hr said it takes time to rebuild an economy that had drifted to margins of insolvency.

“What you will observe during this period are huge fluctuations in key macroeconomic variables (save for inflation that appears to have a good grip). The focus this year is to attend to the real economy (as assured by the President during the recent press conference).”

Mr. Kanyama observed that the private sector now has sufficient signals to commit resources into expanded production and new investments.

“Once private sector (whose investment lead time is longer than generally expected) responds, we will begin to see stability. My reading of the situation is that we will only experience envisaged (real) growth levels (stable outputs in copper, agriculture, energy and other sectors) in 2024,” he said.

“This should be preceded by all creditors agreeing to the G20 Common Framework on debt restructuring. Despite IMF coming on board, the number one problem threatening stability is yet to be resolved. This is the debt and I am sure things are happening to ensure we conclude on this matter sooner than later.”
He added, “For now, we can only put our hands together as a country to resolve these legacy issues. We are also hoping for speedy solutions to geopolitical factors; sorting out of the USA economic challenges that have affected interest rates (leading to low portfolio foreign inflows to our domestic markets as investors seek for safer havens).”

11 COMMENTS

  1. Under upnd and hh it will never happen. When the driver of a car is blind and incompetent you never get to your destination.

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    • The one who is blind is the leader that drove us into this ditch in the first place. You set a house on fire and then stand from far, laughing at and mocking the person who is trying to put out the fire. Ebuloshi ubo…

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    • Uwakwisano – Ignore this UK based Troll/Impostor…some of these chaps can only imagine to visit Zambia because they have immigration issues and all it can do is pretend to where its not. Last year it was posting as PF in UK but ran out of material it was only when DEC arrested KZ did it pop up again.

    • Uwakinaso you are a deluded upnd cadre. For arguments sake, let us say that pf created a fire, and then someone from upnd comes to claim and promkse that if voted in he can put the fire out and even make the environment better than it is. People then believe his lies and then the f00l fails to fulfil his promise. Who do you put blame on? As for tarino simply fark off!

  2. It is not the problem of UPND, but PF which pretended to be patriotic but survagily under mining President Sata in order to install your friend.
    It was you who destroyed PF after you got faired

  3. Chibamba has a valid point but you can not talk of economic recovery when the President is afraid of visiting the country’s biggest creditors in Bejing he would rather kiss old muzungu Joe’s brown ring and mop the floors for IMF and World Bank in Washington. Getting close to China now is a big plus given that its getting energy from the Russians at it on terms and reselling it.

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  4. I concur. Zambia;s economic trajectory is on the right rails. Thats why we should try every thing possible to protect HH and his team from ignorant populists PF and fossilized communists from derailing the vital but painful recovery program. Debt restructuring is indeed the tin-opener but some creditors are still driving hard bargains.These other teams will be relying on”All-weather friendships” to negotitiate debt

  5. Kuti waseka…and gullible Zambians were promised miracles in less than 14 days….no wonder Prophets take advantage of such gullible people and sell them the so called “anointed water”…. unfortunately, they never learn, and another Politician will come up with lies and they will still believe him…Sata Promised more money in your pockets in less than 90 days…. HH lied throughout his campaign, and they believed him

    • The one who is gullible is one who cannot differentiate between politicking and what is practical .Don’t take what is said off-the-cuff at political rallies.Interrogate a political party;s manifesto and its subsequent policies before you turn yourself into fooolish voter

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