By JUDITH NAMUTOWE –
THE Civil Society for Poverty Reduction (CSPR) says there is need for economic diversification to be accelerated with primary focus on industrialisation and job creation.
CSPR executive director Patrick Nshindano said it was important that economic diversification was accelerated in the country.
“Enhancing productivity and driving import substitution in the short to medium term and later, exports to upscale foreign currency earnings in the long term,” he said.
Mr Nshindano was speaking during a media cocktail held in Lusaka on Tuesday night.
He said inclusive monitoring and evaluation needed to be designed and implemented for ensuring adherence to defined goals and set targets for acceleration of economic diversification and the turn around strategy of the entire economy.
Mr Nshindano said Government revenue remained low due to continued reduced productivity, an inefficient tax system, narrow tax base, a high incidence of tax avoidance and evasion as well as, low donor support.
Government foreign debt increased to US$6.3 billion as at the end of August 2015 from $4.8 billion as at end of December 2014.
He said this has become costly for Government to repay in terms of Kwacha and a huge domestic debt whose preliminary data indicates an amount of K26.5 billion as at September 2015.
“This is a huge risk faced by the country as it has crowed the private sector borrowing and induced high interest rates on the local financial market.
“Further, nothing is publicly known about the magnitude of Chinese loans, which are evidently off the balance sheet of Government,” Mr Nshindano said.
Mr Nshindano called for the enactment of the National Planning and Budgeting Bill to increase accountability and citizen participation in the development of the country.
He said accountability would instil confidence and encourage more citizens to participate in the economic development of the country.
Last year, the Government launched the National Planning and Budget Policy which seeks to provide specific guidance to Government and Parliament in matters relating to the budget, planning, implementation and monitoring.
