Zambia’s K200bn economic stabilisation programme unveiled

By NATION REPORTER ZAMBIA’S monetary policy will be re-aligned to Government’s fiscal consolidation measures without compromising inflation and growth objectives, says Finance Minister Felix Mutati.

Mr Mutati said to unlock economic activity, Government will work towards dismantling arrears owed to suppliers of goods and services, as well as contractors.

Government will at the same time ensure that Zambia remained within sustainable debt levels.

Mr Mutati said this in Lusaka yesterday when he announced the country’s successful preparation of the K199.6 billion Economic StabiliSation and Growth Programme (ESGP): Zambia Plus, 2017-2019.

He said the programme however benefitted a lot from visionary guidance of President Edgar Lungu, Cabinet and the concerted participation of various stakeholders through a countrywide consultative process.

Mr Mutati also said that Government would pursue necessary structural reforms while implementing an effective social safety net to lessen the impact of stabilisation measures on the most vulnerable.

“These principles will be key to laying a foundation for the successful implementation of the Seventh National Development Plan (7NDP), 2017 – 2021,” said Mr Mutati

“The eagerness of various stakeholders to have a home grown programme was commendable,

“I wish to acknowledge contributions from the labour movements, civil society organisations, the chambers of commerce, think-tank organisations and others who participated actively in the consultative meetings,” he said

Mr Mutati explained that due to their input, he was proud to say that the programme was truly home-grown, based on local diagnostics of the challenges facing the economy and to address them.

“I applaud and appreciate the people’s commitment to find home grown solutions,” he said

He said Consistent with the 7NDP, the ESGP put particular emphasis on agriculture, tourism, energy, mining, as the basis for diversification.

Access to markets, ICT and infrastructure development were emphasized as key growth enablers.

And in Zambia’s quest to restore fiscal fitness for sustained inclusive growth and development, President Lungu has affirmed that the time to act is now, and has added that, “we will therefore, need to be bold and decisive.”

Reflecting on developments in the last decade in the foreword of the ECGP, President Lungu observed that there has been turbulence in our development agenda, as a consequence of which, “this made it difficult to implement long-term policies for sustained economic stability and higher growth.”

Mr. Lungu said the mandate that the Zambian people had given his administration provide ample time to achieve set goals and objectives in stabilizing and growing the economy.

“The government is committed to the achievement of a fiscal balance as it is a critical step in getting the economy back towards a growth trajectory that is more sustainable and inclusive,

“The team work exhibited by all well-meaning Zambians in coming up with this homegrown programme is a true testimony of our commitment to restore fiscal fitness and stimulate sustainable economic growth and development, said President Lungu

Meanwhile Mr. Mutati is expected to present the 2018 National Budget to Parliament this Friday, September 29