President Mwanawasa has said government will continue implementing prudent macro-economic policies aimed at sustaining economic gains while ensuring that the gains benefit the people.
And President Mwanawasa has reiterated governments resolve to ensuring the successful enactment of a people driven constitution.
The President said this today during his annual address to the nation on Zambia National Broadcasting Corporation (ZNBC) Television on New Years Eve.
Dr Mwanawasa stressed that the focus for 2008 is to achieve a higher economic growth rate of at least seven percent.
He noted that the country’s economic growth rate in the last three years has averaged 5.6 percent, while the inflation rate has been declining, reaching 8.9 percent in 2007.
This performance, he said, has translated into stable prices of goods and services for the people.
“Fair minded and objective people will agree that so far, our economic, political and social programmes are on the right track. This is evidenced by the positive economic developments,” he said.
Dr. Mwanawasa also noted that the exchange rate of the Kwacha against major currencies remained stable and that the lower interest rates offered by banks, have given an opportunity to the people to borrow money and to invest in productive ventures.
The President, however, said the energy sector, which is the engine that drives the economy, has continued to face a number of challenges.
He said government has worked hard to overcome most of the challenges.
In 2007, the nation experienced intermittent disruptions in the supply of petroleum products.
He said, therefore, government has now opted to introduce long term supply measures, unlike in the past when crude oil was procured in intermittent consignments.
He said the long term measure will help insulate the country from the unpredictable international prices which have now hit an all time high of US$100 per barrel.
On petroleum exploration, the President said he was pleased to note that in the past year, government engaged stakeholders in order to finalise proposed amendments to the petroleum exploration Act of 1985.
“As soon as the amendments to the Act are effected, we should be able to see exploration activities in Nort-Western province and in other provinces with potential oil and gas reserves. The selected blocks in North-western province have already been demarcated in readiness for exploration,” he said.
In this regard, Dr. Mwanawasa urged all Zambian private sector to actively participate in the procurement and exploration for petroleum.
He also said in order for Zambians to participate in the global economy, government will increase their access to private sector investment through the programmes of Citizens Economic Empowerment Commission.
He pointed out that this is one way of ensuring that all Zambians including women and youth are given an opportunity to exploit their entrepreneurial capabilities to the fullest.
On mining, the President said the mining sector continues to make tremendous strides and attract huge investments, resulting in increased mineral production.
“It now remains for us to ensure that we derive commensurate benefits from these developments,” he said.
He said government has, therefore, engaged the mining companies in the re-negotiations of the mining development agreements, which should be concluded soon.
Dr. Mwanawasa also stressed that the country has continued to ensure sustainable food security.
He said this is a sign that farmers have responded to the progressive government policies and to the call for hard work.
President Mwanawasa however, said the issue of climate change and the environment is a matter of great concern to the nation.
He said most developing countries including Zambia, are already experiencing effects of climate change such as floods and drought with severe consequences on agriculture, a climate sensitive sector.
The President also said Education and Health are equally important for the social economic development of the country and will continue to receive the priority attention of the government.
Dr. Mwanawasa also bemoaned the high levels of HIV/AIDS and the increased incidences of child abuse and defilement cases in the country.
He said government will in 2008 step up efforts aimed at reducing HIV/AIDS infections, expnading Ant-retroviral treatment and mitigating mother to child transmission.
The President said he was however happy to note that the judiciary has continued to impose stiff and appropriate punishment on offenders as a deterrent measure to the high incidences of child abuse and defilements.
As regard corruption, President Mwanawasa said government in the past year, through the task force on corruption, followed up a number of cases of plunder and recovered several properties and monies.
He said the proceeds from the sales of these properties will be used for the various programmes in needy social sectors.
He also commended the media for the role it is playing in exposing such vices and in helping to consolidate the country’s democracy.
Dr. Mwanawasa said in this vein, Zambia’s governance record has earned the country recognition by the international community as a favourable investment destination.
Turning to the constitution making process, the President said the National Constitutional Conference (NCC) has been constituted to drive the process.
He urged all stakeholders to show unity of purpose and commitment to the whole process.
Dr. Mwanawasa said Zambians should exhibit the maturity and magnanimity that the citizenry have always demonstrated and prove that they can be unity in diversity.
“Let us bury our differences, deliberate issues objectively, and bequeath ourselves a constitution which posterity shall cherish. Zambians let us unite to enact a new constitution in peace and tranquility,” he said.
President Mwanawasa urged Zambians to preserve the peace that the country has enjoyed for many years.
