JCTR calls for utilisation of gains from debt cancellation
JCTR calls for utilisation of gains from debt cancellationBy Chibaula Silwamba
Wednesday January 23, 2008 [03:00]
THE Jesuit Centre for Theological Reflection (JCTR) has said this year’s national budget needs to take advantage of the gains from debt cancellation to enhance poverty reduction through implementation of policies that increase household productivity.
In an interview yesterday, JCTR debt, aid and trade co-ordinator Muyatwa Sitali said to increase household productivity, it was essential to create and support a highly productive and dynamic industrial base rather than concentrate on promoting consumption related development such as retails and chain stores.
“These narrowly improve the employment base but increase importers thereby affecting the balance of payment which is the ingredient to a ballooning external and domestic debt,” Sitali observed. “Opportunities for improving the industrial base range from new investments as well as innovative ways of improving quality and adding value to Zambia’s products which are often raw materials. This paves the way for better and efficient technologies which can be encouraged locally and learnt from other countries.”
Sitali said although foreign direct investment could potentially contribute to this objective, it should not substitute the role of the state to ensure that there was a favourable environment for investment especially local producers and investors.
He urged the government to provide incentives in this year’s budget whereby Zambians that want to invest in production sectors could be exempted from paying duty on imported equipment.
“Increased household productivity has the potential to contribute significantly to aggregate national income and even lead to the over seven per cent growth desirable for attaining the Millennium Development Goals (MDGs) in Zambia,” Sitali said.
Labels: HIPC, JCTR, MUYATWA SITALI
posted by MrK @ 6:38 AM
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