Create conducive business environment, EAZ urges govt

Create conducive business environment, EAZ urges govt
Written by Fridah Zinyama
Tuesday, December 30, 2008 1:33:26 PM

THE Economics Association of Zambia (EAZ) has called on the government to create a stable business environment for the private sector next year to allow for increased economic performance in the country.

Giving his economic expectations for 2009, EAZ national secretary Isaac Ngoma said the government must provide support by creating a conducive business environment with low production costs and a more stable exchange rate which was critical for planning.

“These will help to make Zambia a viable investment destination owing to the fact that we need more foreign direct investment to substantially grow this economy,” he said.

“All this will need us to accelerate the various public sector reforms, ensure fiscal prudence in the management of financial resources, implementation of the IFMIS [Integrated Financial Management and Information system] to compliment sound fiscal management and consistency in policy direction.”

Ngoma also added that the fight against corruption must equally be strengthened to protect national resources and retain credibility.

“Despite all the perceived gloom, we need to continue investing in infrastructure development. This includes investment in the energy sector – power generation facilities, water and sanitation systems, expansion and maintenance of highways and revival of the railways,” he said.

Ngoma said some of the major infrastructure projects could be undertaken through Public Private Partnerships (PPPs) so that the government facilitates the process while private investors provide the capital requirements.

But Ngoma said it was important for the government to quickly address the challenge of rising unemployment compounded by recent retrenchments especially in the mining sector.

“The government should also ensure that timely supply of fertiliser and other inputs to farmers is done in order to ensure adequate food production in the country,” he said.

Ngoma added that the government needed to listen to stakeholders and become more inclusive in finding solutions in 2009 for Zambia to survive the current economic woes.