By PRISCILLA SIMUKOKO-
“We are putting up an ambitious economic and social agenda to move Zambia forward. We will work to reduce poverty, create equitable opportunities and grow the economy to lift people out of poverty like never before.”
This bold declaration was made by President Hakainde Hichilema when he took office a year ago.
It was a memorable and refreshing occasion to many Zambians who witnessed the Mr Hichilema being sworn in as Zambia’s seventh President.
While many doubted the declaration of his commitment and ability to transform and stabilize the shrinking economy at that time, President Hichilema has proved his critics wrong.
The path to economic recovery has become visible in the last 12 months for everyone to see.
Winding the clock backwards, prior to August 2021 presidential and general elections, the economy was in deep recession.
It shrunk to negative 4.2 per cent and inflation was hovering around 20.9 per cent.
The local and foreign debt was undeniably unsustainable, which made it difficult for the government to engage creditors in meaningful negotiations for restructuring of the debt, worse still borrowing from lending institutions such as the International Monetary Fund and the World Bank to stabilize the economic dynamics.
The cry for economic stability was loud in regions like the Copperbelt where people’s livelihoods are centered on mining.
The economic recession was felt at household level as most families barely survived on hand to mouth incomes.
The inauguration of President Hichilema was like a day of redemption from the economic doldrums.
His pledge to move Zambia forward has not only been his campaign slogan, but empirically, he is implementing it as echoed by some captains of industry on the Copperbelt.
They have extolled President Hichilema for the tremendous commitment he has demonstrated to ensure that the economy stabilizes.
Ndola Chamber of Commerce and Industry president Paul Chisunka acknowledged that the last 12 months have been a testimony of reprioritization of economic sectors to ensure inclusiveness.
“We have seen more private sector participation, opening up of the economy and businesses are making entry into the mainstream economy. We have seen the introduction of the Small and Medium Enterprise Development and Science and Technology ministries,” he said.
Mr Chisunka said the two ministries are a testimony of the Government’s intent to have the private sector as the engine of economic growth.
He said their creation has brought about an enabling environment for businesses to absorb the technology available to strive.
Mr Chisunku also said the business community has seen relentless efforts in the fight against corruption.
He said this is evidenced by the reorganization of investigative wings, a conducive governance environment.
He also commended the Government for providing equitable opportunities.
Mr Chisunka said in addition, stabilization of the Kwacha is an important factor to growth of the private sector which has enabled reduction of the cost of imports and boosted the buying power.
The business community has also commended the President for the efforts being made to turn around the economy.
Just barely three months after assuming office, President Hichilema embarked on a debt restructuring process and managed to reach a staff level agreement with the International Monetary Fund (IMF), an effort that the previous administration failed to achieve.
Thankfully, the country now is waiting for the IMF board approval once the financing assurances from the official creditor committee are concluded.
Mr Chisunka said the IMF deal is important if one is looking at reducing the debt burden.
The funding from the deal would go into supporting infrastructure and in areas of sustainable investment that will be created in consultation with the Public Private Dialogue Forum (PPDF) initiatives.
He said captains of industry are happy that President Hichilema has created strong links with the business community through the PPDF.
Kitwe Chamber of Commerce president Emmanuel Mbambiko said Zambia was among countries with the worst performing economies in the world and doing business was difficult.
He said this, coupled with political tussles and a sense of insecurity in the country, impacted on the local businesses.
“The restoration of the rule of law has also contributed to the positive change in the economy, which is more predictable. Our members in the importing business are spending less Kwacha because the cost is less,” Mr Mbambiko said.
During the 12 months in office, President Hichilema’s administration seems to focus on attaining the real Gross Domestic Product (GDP) growth rate of 3.5 per cent by the end of this year and beyond, while other visible ta rgets to resuscitate the economy include reducing the inflation rate that was around 22.1 per cent as at December 31, 2021, to a single digit and limiting the international reserves to at least three months of import cover.
“The economy is more stable; the exchange rate and inflation in the last one year have stabilized. These are positive indicators of recovery. It’s not only about money, but it is the endorsement that we are getting that Zambia is doing well where economic stabilization is concerned. What is being done is in the right way,” said Ashu Sagar, a representative of the Zambia Association of Manufacturers.
Mr Sagar commended the Government for the bold and stringent economic measures that have been put in place, describing them as positive for the economic transformation agenda.
“The continued downward movement in the inflation rate, which as of June 30 stood at 9.7 per cent, stability in the exchange rate and the friendly business environment are all positive indicators to economic recovery,” he said.
Mr Sagar said he has seen leadership which has direction coupled with financial discipline, the ingredients that are important in the management of resources.
He acknowledged that the one year of President Hichilema in office has given the country hope for economic recovery.
Bernard Mwelwa, a cross border trader of Ndola could not hide his joy over the conducive environment that has been created for traders who are now able to import merchandise with less capital.
Mr Mwelwa expressed gratitude to President Hichilema for stabilizing the economy.
“I am able to import my merchandise unlike before. Business was difficult as most of us could not import goods looking at the meagre capital we had. But at least we are able to get more goods even if one has a K 20,000,” Mr Bwalya said.
Joe Mbilishi, a Ndola-based entrepreneur said he had nothing to talk about a year ago.
He attributed his misfortune to what he termed as wasteful expenditure by the previous administration.
“I was not able to make orders. The economy was not making sense and this affected my business,” he said.
Mr Mbilishi said now he is happy about the positive change after the new administration took office.-ZANIS.