By KASONDE KASONDE
THE United Nations Economic Commission for Africa (UNECA) has requested for new Special Drawing Rights (SDR) for Africa from the International Monetary Fund (IMF) out of which Zambia will benefit a US$1 billion.
United Nations (UN) under secretary general and Economic Commission for Africa (ECA) executive secretary Vera Songwe said the additional liquidity was meant to help Zambia address the prevailing high cost of living triggered by the high fuel prices.
Speaking when she met Bank of Zambia governor Denny Kalyalya at his office Dr Songwe said the high prices had led to the increase in the cost of living as prices of food and other commodities had gone up.
Dr Songwe said the SDR would help address the tensions in the continent and Zambia was lucky to be benefiting from the extra liquidity to help her address challenges not only the fuel and fertiliser prices but also the monetary tightening.
“We have done some works which has indicated that if extra liquidity is not given over six million people in Africa will starve. There are real issues and in some way Zambia is a good example of the Continental free trade because it is able to sell its excess maize to its neighbours,”Dr Songwe said.
She also said Africa should look at how it could create opportunities to grow the continent by investing in sectors where it had an advantage such as venturing into electrical cars given that Zambia and Democratic Republic of Congo (DRC) produce about 78 per cent of the world’s copper.
And Dr Kalyalya said the talks were cordial and a number of issues were discussed on what was going on domestically, especially that she was a strong ambassador and well placed to speak for the country.
He said given the financial issues that Zambia was facing there was need to have more voices speaking for the country and Dr Songwe was one of the voices and that it was important to hold talks with her.
Dr Kalyalya said Dr Songwe was keen to see the through the framework and more important to see to it that the country restructures its debt.
