BOOST PRODUCTION

ZAMBIA should work out ways of boosting production and operations in critical sectors of the economy while pursuing the International Monetary Fund rescue package.

The economic outlay needs to be adjusted to stimulate growth in critical sectors such as agriculture, manufacturing, energy and mining.

Yes, the Bank of Zambia (BoZ) has adjusted the Monetary Policy Rate (MPR) from 8.0 to 8.5 percent to contain inflation which ballooned to 21.6 percent in January, but this measure requires to be buttressed by increased production.

Prices will remain high in the short-term, but eventually slide down in the medium term. The lasting solution is to boost operations in the productive sectors.

In the manufacturing sector, there is need to address encumbrances which include high electricity tariffs, which invariably trigger high cost of production.

The Zambia Association of Manufacturers has time and again complained about the shocking electricity tariffs.

It is also prudent for the country to come up with a sustainable energy mix, blending hydro-power, solar energy and other clean energy sources.

More players could be invited in the electricity sub-sector which has been dominated by state-owned Zesco Limited.

The country also needs a resilience agriculture sector to guarantee food security, create job opportunities as well as boost exports.

This sector could also be harnessed in such a manner that the value-chain is strengthened in the manufacturing sector.

Looking at the MPR which was adjusted to 8.5 percent, it is actually being used as an instrument to bring down inflation by making contracting money supply.

On the flip-side, those saving money will earn more interest, though it is difficult for any firm to save, given the precarious position of the country’s economy.

The tricky part of the whole scenario is that the measure (MPR) may not be holistic because the economy is certainly not performing well.

One of the ways of coming out of this poor economic scenario is to bolster agriculture and remodel the sector.

There is an imperative need promoting other crops for agricultural diversification to take root and contribute to food security and reduction of poverty.

Government and the private sector should create market linkages with the country and extending beyond the borders, particularly into the Democratic Republic of Congo (DRC).

Most of the food consumed in Katanga province of DRC comes from Zambia, hence the need to boost export in a more coordinated fashion.

Cooperatives are a sure and reliable model of bringing farmers together so that they can coordinate their businesses as a group in an organised manner.

Small-scale farmers have for a long time been producing the bulk of food crops in the country, especially maize and they surely need maximum support.

For instance, small-scale farmers grow rice in Chembe, Mongu and Chama. In Mbala and Senga Hill areas, farmers have been growing beans, but many of them remain stuck with their produce.

Therefore, farmers should be incentivised through proper cooperatives, provided with agro extension services and reliable markets until they graduate into the higher bracket to stand on their own.

The Farmer Input Support Programme (FISP) should be reviewed to make it more sustainable and beneficial because some farmers have been on this initiative for more than 10 years.

FISP was designed in such a way that farmers should graduate into a higher bracket after a few years.

Agriculture is a sure remedy!