By KENNEDY MUPESENI –
THE Government should organise a consultation Indaba to discuss energy and currency issues facing the country, a local think tank has suggested.
The Policy Monitoring and Research Centre (PMRC) head of monitoring and evaluation Salim Kaunda said this would yield holistic responsive medium to long-term interventions.
Mr Kaunda also suggested that Government must halt all none priority development projects such as township roads to reduce imports to stabilise the economy.
“There is also need to waver tariffs on essential imports for consumables so as to cushion the cost of living currently being influenced by the power shortages and depreciation of the Kwacha,” he said.
Mr Kaunda also wanted Government to introduce policy interventions through a Statutory Instrument (SI) that will boost the demand for the Kwacha.
He also said that the Bank of Zambia should further tighten monitoring of balance of payments to reduce illicit flows of funds in and out of the country to protect the local currency.
In the long term, Mr Kaunda stated that there was need for diversification of the economy from copper to exploit high potential
sectors such as agriculture, tourism, manufacturing and energy and boost local manufacturing industry by revising taxes.
He said addressing the energy challenges for increased manufacturing with value addition for export purposes was critical to the growth of economic sectors.
“The government should look to lower capital investments as part of economic diversification for the country. Many developing countries are placing high hopes on new natural resource-based investments: growth corridors in Guinea and Mozambique, an oil refinery in Uganda, natural gas in Tanzania,” Mr Kaunda said..
Natural gas was one of the optional energy alternatives that have been identified as a viable investment option that could yield long term benefits for the country.