Maravi

AfDB attributes economic growth decline to low copper production

AfDB attributes economic growth decline to low copper production
Written by Kabanda Chulu

THE African Development Bank (AfDB) has said Zambia’s economic growth declined to 5.8 per cent in 2007 from 6.2 per cent in 2006 due to low volumes of copper production.

And AfDB resident representative Vivienne Appopo has challenged the Zambian government to come up with policies for facilitating training and skills transfer from international companies to local ones for the country to build an effective labour force.

Releasing the 2008 Africa Economic Outlook themed ‘Technical Skills Development and Vocational Training’ on Friday, AfDB principal research economist Dr Peter Ondiege said Zambia’s economy is expected to recover just above six per cent in 2008 and 2009, owing to a strong increase in copper exports following huge investments.

“This expansion in volume is expected to offset declining world market prices, however, adverse weather and increasing power shortages at the beginning of 2008 will limit growth in agriculture and manufacturing,” Dr Ondiege said. “Other main downside risks for growth in 2008 and 2009 include a decrease in productivity due to the high prevalence of HIV and AIDS, shortage of energy especially electricity, and further appreciation of the kwacha due to depreciation of the US dollar.”

Dr Ondiege said there is slower progress than anticipated in key reform areas such as public sector management and public-private sector development, noting that sectors with the highest growth only employ about one or two per cent of the active population.

And commenting on the triple launch of the 2008 Africa Economic Outlook, the 2007 African Development Report and the 2005 International Comparison Programme for Africa, Apopo said African governments should devise policies that would take into account the needs of the youths in issues of vocational training and employment opportunities.

And finance minister Ng’andu Magande said the reports would help provide data to the government for designing alternative policies to address the various development challenges.

Labels: AfDB, COPPER

posted by MrK @ 12:15 AM