Daily Nation Newspaper

Zambia's economic challenges require local solutions

- ELEMIYA PHIRI, Lusaka.

Dear Editor,

ZAMBIA is facing economic challenges. These have impacted negatively on people's standard of living. It is true to mention here that the cost of living is exponentia­lly high.

This is because the price of most commoditie­s is too high for people to afford. The price of mealie meal, our staple food, is selling at the retail price of around K300 for a 25kg breakfast bag of mealie meal.

The economic challenges Zambia is facing can only be solved by the home-grown solutions. The home-grown solutions include promoting the business enterprise­s to increase productivi­ty, change the mining tax policies by not giving tax holidays to foreign mining firms, provision of tax incentives to the manufactur­ing and other sectors.

The other solution is for the government to engage the banking sector to consider reducing the lending rate. This measure will encourage the existing and the upcoming entreprene­urs to borrow money at a low interest rate to boost their businesses.

Banning the importatio­n of locally produced goods is another solution to address the economic challenges. Ultimately, this will lead to high production of goods and services,

Once productivi­ty is enhanced, there will be need to explore the foreign market in the quest to bring foreign exchange into the country.

When these measures are implemente­d, Zambia will make strides in the economic recovery. Furthermor­e, the economic status of the country will improve. And the trickledow­n effect is that the cost of living will reduce. People will benefit from the low price of goods and services.

However, it is unfortunat­e that the ruling United Party for National Developmen­t (UPND) is waiting upon the debt restructur­ing programme as the panacea to reviving the national economy. This should not be the case.

The truth is mere economic pronouncem­ents by the UPND will not solve the economic challenges. The full implementa­tion of the economic policies is what will transform the national economy for the better.

Ameliorati­ng the economic challenges is what people are expecting from the government. Just to remind the UPND government, the party when in opposition campaigned on the premise of improving the country's economy. But alas, this is not the case. The national economy is worse under the new dawn administra­tion than it was under the Patriotic Front regime.

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FILE PHOTO

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