Maravi

world bank advises govt to reduce business cost

world bank advises govt to reduce business cost
Written by Kabanda Chulu
Wednesday, April 15, 2009 3:35:16 AM

WORLD Bank vice-president for Africa Obiageli Ezekwesili has advised the Zambian government not to risk its capital by increasing its shareholding in copper mines. And Ezekwesili has urged the government to quickly implement economic reforms that will reduce the cost of doing business in Zambia.

Mines minister Maxwell Mwale recently announced that the government planned to increase its stake in the mines from the current 15 per cent to around 35 per cent to augment its decision making in the sector.

But Ezekwesili said the government should not risk its scarce resources that could be channeled to other economic sectors during the current economic crisis.

She noted that during the past years, sub-Sahara African countries, including Zambia, had recorded sustained economic growth due to economic liberalisation.

“What is happening is a phase and this is the cyclical nature of the mining sector hence whatever is happening right now such as job losses and other issues are imperative and we should not pretend that things are alright and government is always restrained with provision of resources,” Ezekwesili said.

“But why should the Zambian government risk its capital that can be channelled to other economic sectors than increasing its shareholding structure in the copper mining sector? We do understand mining is the main-stay of the country’s economy but the private sector can risk their capital and consequently pay taxes to government, so in our view government should just create and implement enabling policies to allow private sector driven economy.

“Countries that have recorded economic growth embraced free market policies and once government understands that certain sectors are better left to the private sector, the economy will grow and this pattern should not be reversed especially that the private sector also creates employment.”

And Ezekwesili, who toured various economic sites and held several meetings with the government, the private sector, media and the civil society organisations during her visit to Zambia, said the country was at the centre of economic transformation.

“Things can happen and the time is now, but government should quickly implement its policies because this is the message we got from many stakeholders, who desire to see action now,” said Ezekwesili.

“Right now, doing business in Zambia is too costly for any investor due to various obstacles, for instance, the tourism and telecommunications sector require many licenses for one to establish an entity…these sectors are able to create jobs and offer auxiliary services, so government should quickly implement its policies since people are willing to participate in the economic transformation of the country.”

Labels: MAXWELL MWALE, OBIAGELI EZEKWELISI

posted by MrK @ 2:36 AM