Central Bank governor Caleb Fundanga says Zambia needs to continue recording positive economic growth to fight poverty.
And the Zambia Federation of Employees (ZFE) says most employers are concerned with the high interest rates charged by commercial banks.
Dr. Fundanga said economic growth is the basis the Southern African country can fight poverty. He said that there can never be poverty eradication without economic growth.
“Good economic growth is good for the nation because it will help fight poverty. We need growth to re-distribute wealth.
“We cannot eliminate poverty in the country if we are recording negative growth but with positive economic growth we stand a good chance to fight poverty, ” he said.
He stated that the country has continued to record an impressive economic growth rate over the years.
Dr. Fundanga has however called for the country to develop a good re-distribution policy for many people to benefit from the booming economy.
He said need to prioritize areas like agriculture where many people directly benefit from.
Dr. Fundanga said this at the meeting with business community in Lusaka last night.
The BOZ governor has however reiterated the bank’s commitment to reduce the country’s inflation rate to a much lower level.
He said lower interest rate will create conditions for the country to record economic growth.
“As Bank of Zambia we will continue to make strides in reducing the inflation levels. And we are always working towards that, ” he said.
And the Zambia Federation of Employees (ZFE) says local employers are concerned with the levels of interest rates charged by commercial banks.
(ZFE) President Alfred Masupah said at the same occassion that there was need for commercial banks to make the cost of borrowing affordable for employers to expand their business.
He said this will also play a significant role in expanding business entities and help create meaningful employment for the people.
“We in the Zambia Federation of Employees believe that Commercial banks have a significant role to play in capital injection in business entities and that business entities will be able to expand and create meaningful employment for the unemployed if the cost of borrowing is affordable, ” he said.
Mr. Masupah has since called for more of such meeting between the bank of Zambia and the business communities in Zambia in resolving problems in the financial sector.
“It is in this regard that a meeting such as this one is of great importance as it provides an opportunity for information exchange in regard to how the financial sector should perform in meeting the needs of the industry” he said.
ZANIS
Accepted, but economic growth alone does not guarantee poverty reduction unless there are measures for income redistribution. I am sure this is the emphasis of MMD govnt policy.
It is highly recommended that Fundanga and his team have managed to achieve low level of inflation leading to economic stability. However, this achievement takes a lot of sacrifice on the part of ordinary people but all could change within a day. To make the matters worse monetary authorities may not even have control over these negative variables which easily wipes off years of sacrifice and then start again, tight monetary policy again and again while ordinary people remain without jobs and hence remain in poverty. So Bank of Zambia should be tasked to keep tight monetary policy but allow an element of fiscal intervention for job creation. If they perform then that will be great.
The low levels of our inflation only benefits a small number of people in our country-the investor!They protected in every sphere that I call them the Government Trophy.
Let the Kwacha gain against the Dollar so that we can import things that can help alleviate the poverty levels.
Even the Zim Dollar that exprienced the worst form of inflation has gained ground.
Dr C Fundanga help me understand