Maravi

Mabenga calls for well managed energy sector

Mabenga calls for well managed energy sector
By Edwin Mbulo
Monday December 03, 2007 [09:46]

MMD national chairman Michael Mabenga has called for a well-managed energy sector to protect the economic gains already achieved in the country. And Bank of Zambia (BOZ) vice board chairman Dr Jonathan Chileshe said monetary policy was a key determinant of low inflation, which in turn was a precondition for achieving economic growth and development. Speaking during the opening of the 7th BOZ seminar for members of parliament in Livingstone yesterday, Mabenga said with the high oil prices and the looming electricity shortage, the energy sector needed to be well managed.

“If not well managed this sector will erode what we have gained,” Mabenga said. Mabenga added that it was important for members of parliament to be able to explain to their electorate what BOZ does.

And Dr Chileshe said low inflation and economic growth were key conditions to effectively reducing poverty.

“It should also be noted that low and stable inflation sets the stage for encouraging high levels of local and foreign investment in an economy,” Dr Chileshe said.

Dr Chileshe added that higher and unstable international oil prices due to demand for the commodity and supply uncertainties would pose challenges to the attainment of these objectives.

“In addition infrastructural development particularly in fields of transport energy and social services are urgently required to open up domestic markets,” Dr Chileshe said.

He noted that high levels of local and foreign investment were associated with increased productivity, new technology and management skills and employment opportunities for citizens.

Dr Chileshe told the members of parliament that in 2006 the Zambian economy registered an eighth consecutive year of positive growth of 6.2 percent in real Gross Domestic Product (GDP).

He said continued implementation of prudent monetary and fiscal policies, fairly favourable developments in exchange rates coupled with pro-agriculture policies led to improvement in the country’s food security.

He also said the external sector had continued to score remarkable improvements as reflected in the resilience of the Kwacha against major foreign currencies.

Labels: ENERGY, MMD, NEOLIBERALISM

posted by MrK @ 5:58 AM