Maravi

Zambia has failed to diversify its economy, says Prof Ndulo

COMMENT - " copper was not a reliable economic driver " - it is for the mining companies who this government allows to keep all the profits, without paying taxes.

Zambia has failed to diversify its economy, says Prof Ndulo
Written by Florence Bupe
Thursday, July 23, 2009 4:19:02 PM

UNIVERSITY of Zambia (UNZA) head of the department of economics Professor Manenga Ndulo has observed that Zambia has failed to diversify its economy as the agriculture sector remains stagnated.

Making a presentation on the global economic crisis and its impact on the Zambian economy at Hotel InterContinental in Lusaka, Prof Ndulo said the country had failed to move away from its dependence on copper as an economic driver.

“Zambia has failed to adjust from copper dependence, this country has a stagnated and unstable agricultural sector, which should be the next income earner from the mining sector,” Prof Ndulo said. “Policy makers have failed to make the (agricultural) sector tick.”

Prof Ndulo said Zambia was a poor country and would remain so for as long as its potential was unexploited. He observed that the country had continued to be uncompetitive internationally because of the high production and service costs.

“Zambia has a high cost and inefficient service sector. It is basically a poor country which has potential, but potential is not wealth. You have to turn that potential into wealth to survive,” he said.

Prof Ndulo said copper was not a reliable economic driver considering its price fluctuations on the international market. He advised the country to look to other sectors for increased revenue through exports.

Prof Ndulo also suggested that the mining industry should be made to contribute more meaningfully to the national budget. And Prof Ndulo has advised government to put in place policies that would facilitate increased economic growth in the next few years.

He said for Zambia to register any meaningful growth, it needed to have a growth rate of not less than seven per cent per annum.

Labels: MANENGO NDULO

posted by MrK @ 3:19 PM