Zambia’s Finance and National Planning Minister, Situmbeko Musokotwane, has stated that the country’s economy is moving in the right direction, despite the challenges faced by its citizens. Speaking at a symposium during his State of the Economy address for the first quarter of 2023, the minister highlighted several factors that have contributed to the positive outlook.
According to Musokotwane, the growth rate for the country’s real gross domestic product (GDP) was recorded at 4.7% in 2022, exceeding the earlier projection of 3.1%. This growth was driven by the good performance of the transport, education, and information and communications technology (ICT) sectors. The transport sector grew by 7.8%, while the education and ICT sectors grew by 7.2% and 6.3%, respectively.
However, the minister acknowledged that more work is needed to make a meaningful impact on job creation, poverty reduction, and improving the lives of people. He added that the government is working towards higher economic growth by implementing measures to accelerate production in various sectors, such as agriculture, mining, and manufacturing.
In the agriculture sector, the government is focusing on improving irrigation systems, access to financing, and the use of technology to increase yields and improve the quality of produce. In the mining sector, the government is working on creating an enabling environment for investment and exploration, as well as addressing environmental and social concerns. In the manufacturing sector, the government is supporting local production and value addition, as well as creating a conducive business environment for investors.
To facilitate investments in all sectors, Musokotwane promised that the government will double its efforts in combating red tape, warning public sector officials against frustrating investments. He also informed that the government is engaging with creditors to resolve the country’s debt overhang, which is critical to unlocking additional financing from the International Monetary Fund and attracting new foreign investment.
While the Zambian economy continues to face economic hardships, the minister’s reassurance that the government is taking steps to address them could provide some comfort to citizens. The government’s efforts to promote economic growth and development are reflected in the 2023 national budget, which focuses on increasing revenue mobilization, reducing expenditures, and improving the efficiency and effectiveness of public services.
According to the budget, the government plans to increase revenue mobilization by 1% of GDP through measures such as improving tax compliance, expanding the tax base, and reducing tax exemptions. The budget also includes measures to reduce expenditures, such as rationalizing subsidies, improving public procurement, and reducing the wage bill.
In addition, the government plans to improve the efficiency and effectiveness of public services through measures such as strengthening public financial management systems, improving the quality of education and health services, and enhancing public sector accountability and transparency.
In conclusion, Zambia’s Finance and National Planning Minister remains optimistic that the country’s economy is on the right path, and with continued engagement and trust from the Zambian people, a more resilient, vibrant, and inclusive economy for all can be built. The positive growth rates in the transport, education, and ICT sectors, as well as the government’s efforts to promote economic growth and development, provide hope for a brighter future for Zambia.
