Maravi

‘Rupiah will face serious economic challenges’

‘Rupiah will face serious economic challenges’
Written by Masuzyo Chakwe
Monday, November 03, 2008 7:13:03 AM

UNIVERSITY of Zambia (UNZA) Development Studies lecturer Dr Francis Chigunta has said President Rupiah Banda will face serious challenges regarding Zambia’s economy in view of the global financial crisis.

In an interview yesterday, Dr Chigunta said the price of copper was falling, the inflation rate was going up and the kwacha had lost a lot of value in the recent past.

He said there were also serious challenges of poverty in the country.

Dr Chigunta said the majority of Zambians were still living in poverty and that this was the country’s biggest challenge.

“So, I expect President Banda to seriously address these problems. He needs to deepen the reform process but he should actually begin by reassuring everybody. We need certainty, predictability in terms of policy regime, right now a lot of investors, including Zambians, are worried about what will happen beyond October 30,” Dr Chigunta said.

“So, the first thing the President must do is to reassure everybody more especially investors. Moreover the current financial crisis in the USA made foreign investment highly contested and Zambia has to compete very seriously with other countries and the incoming President must deepen the reform process.”

He said Zambia needed strong institutions that were capable of implementing these reforms.

“We also have to see a transparent policy-making process and I always refer to institutions. That means the President should continue with the legacy of the late president Mwanawasa of according the rule of law and promoting constitutionalism, to be sure that this country has credible, transparent and legitimate institutions,” he said

Dr Chigunta said this was very important because with credible institutions, the country would now be able to formulate and implement good policies that may deepen the reform process and promote growth in the country.

“Zambia needs a minimum growth rate of eight per cent if it has to have a serious dent of poverty reduction. Yes, and whilst these things are done hopefully we will see an appreciation of the kwacha, a reduction in the inflation rate and ultimately reduction in poverty,” said Dr Chigunta.

Labels: ECONOMY, FRANCIS CHIGUNTA, RUPIAH BANDA

posted by MrK @ 7:14 AM