There's need to diversify economy

http://www.postzambia.com/post-read_article.php?articleId=22964

There's need to diversify economy - Dr Hinrichsen
By Masuzyo Chakwe
Thursday February 22, 2007 [02:00]

GERMAN Ambassador to Zambia Dr Irene Hinrichsen has said there is need to diversify Zambia's economy in order to further increase economic growth. And Ambassador Hinrichsen has said government needs to reduce poverty and fight for the betterment of people's daily lives. In an interview yesterday, Ambassador Hinrichsen said the problem in Zambia was the growth rate. She said the country had a steady increase in GrossDomestic Product (GDP) that had reached six per cent but the real growth started at eight per cent. "If Zambia can just gain that two per cent then the growth will be felt by everybody and we can achieve this by economic diversification. There is need for new branches and avenues to be opened," she said.

Ambassador Hinrichsen said agriculture needed to be intensified by developing the industry. "In the area of tourism, there is need to be careful in what kind of tourism the country wants to develop. This also applies to the Legacy Project where wildlife would have been ruined and I can assure you that no German will come to Zambia if the environment is ruined. I am glad that they decided to do away with the golf course and concentrate on the other things," she said. She said Zambia had beautiful areas that had not been developed and there was a lot that could be done in other fields. Ambassador Hinrichsen said Zambia should not rely on mining alone as a source of its revenue.

She said the economy had to be balanced. "Fifty per cent of the national income can come from mining but the other 50 per cent should be divided among the other sectors and this will help reach the famous eight per cent. Otherwise, development is going in the right direction, inflation has reduced and we hope to see a better number this year," she said. And Ambassador Hinrichsen said it was time for government to reduce poverty and fight for people's daily lives to become better. She said the fact that Pay As You Earn (PAYE) had been reduced was good in that people would have more money.

Ambassador Hinrichsen said Zambia could get more money from new contract negotiations in the mining sector. She said Zambia could also get more money from co-operating partners in terms of direct budget support in areas that affected the people.