Rupiah pledges diversification of economy

Rupiah pledges diversification of economy
Written by Patson Kayunga in Lilongwe, Malawi and Florence Mwisa in Dar-es-Salaam, Tanzania
Thursday, February 12, 2009 2:26:36 AM

PRESIDENT Rupiah Banda has assured that the government is working hard to address the country's economic challenges brought about by the current global economic meltdown.

Addressing Zambians resident in Lilongwe, Malawi on Tuesday, President Banda, who was on a two-day official visit to that country, said the government had put in place a wide range of measures aimed at attracting investment in tourism and other sectors of the economy to create jobs and wealth for Zambians.

President Banda said the government was working towards transforming the northern circuit and Luapula into one of the country's leading tourist destinations.

President Banda noted with concern that copper prices had plummeted from US$8,900 per tonne to the current US$ 3,400, a situation he said was not favourable for the growth of the Zambian economy.

However, he said the government was doing everything possible to address the challenges by diversifying from the dependence on copper mining to agriculture, tourism and other sectors.

He said Zambia has a lot to learn from Malawi, which has succeeded in subsidising and distributing agriculture inputs to small-scale farmers, leading to that country's improved national food security in recent years.

President Banda also urged Zambians living in border areas with Zimbabwe not to be restrictive but to sell mealie-meal to their Zimbabwean brothers and sisters who were facing hard economic times.

He said Zambia was happy that a government of national unity would be established in Zimbabwe so that efforts could now be directed to rebuilding that country.

President Banda said it was important for him to visit all neighbouring countries to create a stable economic and political environment for continued peace and stability in the region.

And President Rupiah Banda and President Jakaya Kikwete of Tanzania agreed to explore the possibility of concessioning the Tanzania-Zambia Railways (TAZARA) as a way of improving its performance.

The two Presidents also agreed to cooperate in the rehabilitation of the Single Point Mooring (SPM) at the Tanzania-Zambia Mafuta (TAZAMA) pipelines in order to enhance the flow of oil to Zambia.

According to a communique issued in Dar-es-Salaam on Tuesday following President Banda's visit to Tanzania, the two leaders agreed on the immediate and long-term strategies to address the logistical chain from the port to TAZARA until the final destination.

President Banda and President Kikwete urged the relevant ministries to convene a meeting of experts to expedite the conclusion of an agreement on the One Stop Border Post concept.

The two Presidents also discussed issues relating to the supply of power to Rukwa region in Tanzania, as well as transport facilitation under the One Stop Border concept.

The two leaders who exchanged views on the performance of various key institutions and sectors such as TAZARA, TAZAMA and the Port of Dar-es- Salaam, also emphasised the importance of revitalising the Joint Permanent Commission of Cooperation (JPC) between Zambia and Tanzania to create a platform in which issues of mutual benefit could be dealt with speedily.

President Banda and President Kikwete further re-affirmed their commitment to ensuring that the 9th session of the JPC of cooperation was held.

On regional issues, the two leaders pledged to continue to work together to address matters of mutual concern in the Southern African Development Community (SADC) region and the continent as a whole.

They expressed hope that the problems facing the Democratic Republic of Congo (DRC) and Zimbabwe would be resolved so as to ensure peace, security, stability and development in the SADC region and the continent as a whole.

Earlier, President Banda toured TAZAMA Pipelines tank farm and the Ministry of Finance and Economic Development (MOFED) Port of Facilities.

President Banda assured management at TAZAMA after he toured the facilities that he would work closely with his Tanzanian counterpart to see how the problems affecting the company could be solved.

Earlier, TAZAMA Pipelines regional manager Abraham Saunyama said TAZAMA was failing to operate to its full capacity due to financial problems.

He appealed to the governments of Tanzania and Zambia to help recapitalise the company whose facilities have been in existence for over 30 years.

Saunyama said the equipment at TAZAMA currently posed both economical and environmental challenges hence the need for the two governments to agree to finance the rehabilitation of the equipment.

President Banda was accompanied to Tanzania and Malawi by energy minister Kenneth Konga, communication minister Dora Siliya, foreign affairs minister Kabinga Pande and other senior government officials.