THE fact that the World Economic Forum (WEF) rates Zambia’s economy among the 10-most competitive in sub-Saharan Africa is proof enough of the country’s right policies which have over the years been attracting investments.
The current rating comes barely four years after Zambia was considered the 6th best country in Africa to do business. This was in 2010, and it appears the country has not looked back since then as it has been doing everything to remain the destination of choice by investors.
Zambia’s good policies have continued to attract significant foreign direct investments (FDI) which have been increasing year after year.
This is confirmed by WEF founder and executive chairperson Klaus Schwab who has attributed improvement in Zambia’s economy partly to the country’s prudent monetary policies.
One positive effect of such developments has been the fall in the incidence of extreme poverty from a high of some 60 per cent in the early 1990s to less than 50 to date.
Of course it can rightly be argued that extreme poverty was in the 1990s much higher in rural areas standing at an estimated 60 per cent compared to about 20 per cent in the urban areas.
However, if figures from the Central Statistical Office are anything to go by, the poverty gap ratio has since declined from slightly over 60 per cent then to less than 30 per cent to date.
Because these developments have largely been attributed to the economy’s competitiveness, there has been a call on Zambia’s economic planners to now focus on improving the atmosphere of competitiveness further.
Zambia’s economy has all along revolved around copper mining, and this in the early years of the country’s independence effectively earned the country the dubious distinction as a mono economy and, therefore,less competitive.
It is only in the past few years that there have calls, loud and clear calls, for the country to diversify its economy and make it more competitive.
Economic policies in this respect have had to be targeted at enhancing road and rail transport, telecommunications, promoting agriculture, as well as local entrepreneurship and giving business persons more and easy access to open markets, particularly for agricultural produce.
There have also been calls by Zambia’s development partners, including the International Monetary Fund and the World Bank, to expand the domestic revenue base through effective taxation of particularly the mines and the informal sector, especially in view of the likely foreign aid fatigue.
Economic liberalisation has also seen Zambia ease regional and global trade barriers through common agreements such as the Free Trade Area of the Common Market for Eastern and Southern Africa, as well as an increase in investments in human development.
All these measures have been key to making the country competitive and, consequently, spurred economic growth which is clear anywhere one goes in the country.
Of course the story cannot be complete without mentioning some of Zambia’s cooperating partners who have equally played a significant role in the country’s economic achievements.
For instance, way back in 2013, the International Labour Organisation (ILO) office for Zambia, on behalf of five UN agencies, signed a euro 5,730,000 (approximately K45 million at the current exchange rate) agreement with the government of Finland to finance the implementation of a joint programme aimed at enhancing competitiveness and sustainable business among micro, small and medium enterprises (MSMEs) in Zambia’s building and construction industry.
The agreement the ILO office for Zambia signed on behalf of the International Labour Organisation, Food and Agriculture Organisation,
United Nations Environment Programme, International Trade Centre, and United Nations Conference on Trade and Development was known as the Zambia Green Jobs Programme.
Efforts of these development partners, like those of others, have gone a long way to help Zambia become one of the 10-most competitive economically in sub-Saharan Africa.