Maravi

Chilipamushi bemoans rate of economic diversification

Chilipamushi bemoans rate of economic diversification
Written by Fridah Zinyama
Wednesday, November 05, 2008 5:39:06 PM

ZAMBIA’S economic diversification process is taking place at a very slow rate, Ministry of Commerce permanent secretary Davidson Chilipamushi has observed.
In an interview, Chilipamushi acknowledged the fact that although programmes to diversify the country’s economy were in place, they were taking long to be fully implemented.

“Now is the time to fully forge ahead with the economic diversification programme as it is not sustainable to base the country’s growth on commodities like copper which have been affected due to the economic crisis the world is currently experiencing,” he said.

Chilipamushi explained that policies on how to diversify the economy have been in place since 1990, but that the implementation process itself had been very slow.

He said government had come up with the Multi-Facility Economic Zones in order to address the need to diversify the country’s economy which is 90 per cent dependent on copper.

Chilipamushi noted that although plans and intentions existed to diversify the economy, Zambia would for a long time to come continue depending on copper.

Copper prices a week ago tumbled to as low as US$3, 825 a tonne on the London Metal Exchange – more than 50 per cent below the record high of $8,940 a tonne recorded in July for the metal which is widely used in power and construction.

There have been concerns that Zambia’s economy, which is highly dependent on copper, might suffer a recession if prices of the commodity – its highest foreign exchange earner – continue to decline on the metals market.

Labels: DAVIDSON CHILIPAMUSHI, ECONOMY

posted by MrK @ 5:40 PM