‘Zambia needs new economic order’
ZAMBIA needs a new economic order to respond and adapt to the new normal beyond short term economic stimulus packages recently prescribed, Golden Party Zambia (GPZ) president Jackson Silavwe has said.
Mr. Silavwe said many countries in Africa, Zambia inclusive, are experiencing economic shocks despite having recorded fewer clinical cases of Covid-19 and that Zambia had registered multiple job losses, depreciation of the Kwacha against major convertibles currencies thereby making businesses and the general cost of living a nightmare.
“Poverty levels have equally rocketed. Assessments by the World Bank and the Interna
tional Monetary Fund show that the global economy has slowed down in growth this year compared to last year. Global trade has slowed down as a result of the closure of borders and the lockdowns in major economies like the European Union (EU), China and the United States of America.
“According to the Economic Commission for Africa (ECA), the Coronavirus blow to economic growth expected to drop from 3.2 percent to 1.8 percent. The secretary for ECA Miss Vera Songwe, further stated that the continent’s interconnectedness to affected economies of the EU, China and USA was causing ripple effects,” Mr. Silavwe said.
The Zambian economy was projected to grow at 3.2 percent, it has now been revised be lower at around two percent as a direct consequence of the challenges facing the economy, chiefly due to the effects of the corona virus.
“We wish to call on the government to initiate a solid long term economic plan in the Covid era beyond the recently announced short interventions. Zambia needs a grand economic reset urgently to curb the adverse economic effects on our people.
“Further, we call upon the Economic Association of Zambia (EAZ) to hold an economic ‘indaba’ that would look into the economy of Zambia critically during the Covid-19 pandemic. An economic ‘Indaba’ held in good faith can provide solutions for a more resilient local economy for a prosperous Zambia,” he said.
He said this was because major economic backbones such as the tourism and mining sector(s) had partially closed down with hotels and lodges having recorded significant reduction in book rates from 50 percent to less than 20 percent for the same period last year resulting in more job losses.