Musokotwane cautions against complacency

COMMENT - " Dr Situmbeko said this was actually the best time to make investments that would yield good returns once the global economic recession subsided. " I think the hardest thing to change is ones mindset. This is not just a global economic recession. The worst bubbles are likely still yet to burst, which means that no matter how cheap things are now, they will be cheaper. However what is worse, is that the dollar may still collapse, in which case the donor aid ($600 million in 2004) to run this bloated state machinery, may not be worth what it is worth now. This has dire implications for the price of food (fertilizer, fuel costs) and the government's priority has to be to secure the food supply. Maybe this is beyond the Finance Minister, but it is incredibly important that the amount of land under cultivation is increased to food prices are reduced by massively increasing the volume of corn and other food grown. Food may become more valuable than gold, let alone copper. And I don't see any kind of urgency from the Minister, in massively increasing the production in agriculture. That has to be done, or people will die.


Musokotwane cautions against complacency
Written by Florence Bupe
Tuesday, April 07, 2009 4:03:54 PM

FINANCE minister Dr Situmbeko Musokotwane has cautioned against investment complacency in the midst of the global financial crisis. During the Barclays Bank Medium Term Note Investor Forum at Pamodzi Hotel on Monday, Dr Musokotwane said there were still viable investment opportunities despite the current economic challenges.

“While I appreciate the gravity of the current economic recession, the world cannot come to a state of rest; we must continue to forge ahead and invest for future growth. The prospects for the growth of this economy remain bright albeit with challenges,” he said.

Dr Situmbeko said there were still many investors seeking business opportunities even with the current challenges facing the global economy.

“There are still a large number of investors, both local and foreign, that continue to look for potential investment opportunities. It is in this context that I am pleased with Barclays Bank Zambia to come to the market and engage the investor community,” he said.

Dr Situmbeko said this was actually the best time to make investments that would yield good returns once the global economic recession subsided.

He said government would continue to partner with the private sector to create a more conducive investment climate.

Dr Situmbeko commended Barclays Bank Zambia for its role in development through the provision of financial services to the Zambian community.

“This is the second time that Barclays Bank Zambia is coming to the market with a bond issue. Therefore, the current bond issue is a positive step towards the development of the capital market,” Dr Situmbeko said. “I would like to urge more companies to come to the market through a bond or equity issue for us to realise the goals of the Financial Sector Development Plan and make debt raising a common feature in our financial market.”

He further urged the Lusaka Stock Exchange (LuSE) and the investor community to be proactive in coming up with innovative products that were responsive to Zambia’s investment needs.

Dr Situmbeko said this would ensure responsive financing solutions for the industry.

And Barclays Bank Zambia chairperson Jacob Sikazwe urged stakeholders in the banking sector to help create investment confidence in the business community.

Sikazwe said there was need to restore and maintain investor confidence in the banking sector.

“It takes courage and commitment for banks to bring new products at a time like this, when everyone is scared to invest,” he observed.

Sikazwe called on the public sector to support initiatives being implemented by the banking sector for enhanced national development.

“The public sector must be seen to be supporting such moves to stimulate and encourage others to come forward,” said Sikazwe.

Barclays Bank Zambia later held a closed door meeting with potential investors on the bond issue.