Maravi

Rupiah urges solutions to global crunch

Rupiah urges solutions to global crunch
Written by Chibaula Silwamba in Livingstone
Wednesday, May 20, 2009 11:16:08 PM

PRESIDENT Rupiah Banda yesterday called for the need to address the challenges of the global economic crisis in order to survive. And commerce, trade and industry minister Felix Mutati said fees for international gateways will be reduced by August this year.

Opening the sixth Zambia International Business Advisory Council (ZIBAC) meeting under the theme: Global Economic Crisis - Zambia's response to growth and competitiveness at Zambezi Sun, President Banda said new partnerships, joint ventures and business strategies should be considered to increase the size and scale of investment in Zambia.

"In an increasingly competitive investment environment, with limited financial flows and cautious investors, Zambia really needs to position itself well to attract and retain foreign investment," he said. [Stupid is as stupid does, to quote Forest Gump, some would see the collapse of the global economy as 'a sign' that neoliberalism has failed - MrK]

"The effects of the crisis are real as manifested by the closure of some operations and job losses in the mining sector. Government is also experiencing a reduction in its domestic revenue collections. This is therefore not only a wake-up call for us to implement the resolutions made in many fora such as the previous ZIBACs, the indaba, the North-South Corridor and many others. But this is a call for us to diversify our economy away from dependence on copper. This is not time for business as usual."

He said ZIBAC continued to play an important role in the development and reform of the private sector in Zambia. He assured that his government would continue to pursue the agenda of private sector reform and development with renewed vigour.

President Banda said most resources in the global economy were under the control of the private sector, hence the need to continue to attract the domestic and foreign private sector to invest in Zambia.

"The theme of this conference reflects the challenges of our time. The global economic crisis is having a devastating impact on our world and on our economy. Today, we face a real possibility that the gains we achieved over the last few years can easily be reversed," President Banda observed.

"The selection of the theme is therefore a clear challenge that we need to respond to the crisis so that the country does not just mitigate the effects of the crisis but positions itself to move forward as the economic crisis begins to clear and normalcy returns to the global economy."

He said it was important at the moment to take measures that would strengthen the competitiveness, infrastructure, food security and the resolve of Zambia to prosper.

"We do not have a choice to do nothing," President Banda said.

He said Zambia's response should ensure that there is adequate safety net to protect the vulnerable in Zambia to moderate the suffering of people resulting from job losses.

"We should ensure that we maintain food security through promotion and prioritising measures to support the continued growth of the agriculture sector," President Banda said.

"Infrastructure projects should be equally kept in focus to allow the country place itself on a stronger footing once the recovery begins to take shape."

President Banda said Zambian industries must produce goods and services that could compete within Zambia and abroad.

He said the government had now put in place a framework for monitoring the implementation of all agreed policies, programmes and projects on a monthly basis.

"This will ensure that any bottlenecks in the implementation process will be identified and addressed on a timely basis," he said.

"From this meeting, I want us to move resolutely to implement what we would have agreed on to address the bottlenecks we are facing."

President Banda said the government had finalised the report on the business licensing reforms, based on the private sector's recommendations, and it would soon be presented to Cabinet for consideration.

And Mutati said: "We also intend, Your Excellency, before the end of August this year to bring down the fees on international gateways, so [that] we can make progress on some of the critical matters that are key to doing business."

And ZIBAC advisors chairman Lord Simon Cairns said Zambia was a great country, with so many resources to enable it soar above the problems.

Lord Cairns said the Zambian government and private sector were now working together.

"Previously, there were differences between the government, the donor community and the private sector. I think there is convergence now," Lord Cairns said.

Zambia Business Forum chief executive officer Reginald Mfula, in a vote of thanks on behalf of the private sector, said there was need for concerted efforts of all the players in the economic to minimise the impact of the global economic crisis.

"... The government should play a pivotal role in implementing the solutions that will be identified in the thematic areas as, and will be, discussed by the international advisors on best practices. Implementation of the economic challenges and resolutions will result in poverty reduction, job creation, more domestic and foreign investment, food security and other offshoots," said Mfula.

"There is no time like now for strategic implementation of the identified solutions to the problems facing the economy."

And speaking on behalf of the cooperating partners, Dutch Ambassador to Zambia Harry Molenaar said cooperating partners agreed that in an environment of scarce resources, Zambia had to double its efforts to attract investment and be competitive.

"Besides attracting foreign direct investments (DFIs), we should also think about promoting local investments in SMEs [Small and Medium Enterprises]," said Ambassador Molenaar.

Labels: GREAT DEPRESSION II, RUPIAH BANDA

posted by MrK @ 10:18 PM