Wednesday, September 15, 2010

Zambia’s economy too reliant on copper – Ambassador Molennar

Zambia’s economy too reliant on copper – Ambassador Molennar
By Moses Kuwema
Tue 14 Sep. 2010, 20:50 CAT

ZAMBIA'S economy is too reliant on the mining industry, Netherlands ambassador to Zambia Harry Molenaar has observed. In an interview, ambassador Molenaar said there is need to diversify Zambia’s economy to other sectors such as agriculture.

“There is need to figure out how to diversify the economy so that more people can profit from the environment and also spread out the economy and for that I think you need the right policies in place. This means putting in place integrated policies; and when you think about agriculture for instance, it is not only about fertiliser subsidies.

It is also about energy extension services so that farmers know how to improve the crops, to improve the cattle. It is about energy and that has to come together. If you don’t do that at once, you will be struggling… roads have to be in place too,” he said .

Ambassador Molenaar said Zambia had a lot of potential and there was need to make better use of it adding that if policies were put together, then the country would see the diversification of the economy which would in turn result in added value.

Ambassador Molenaar said he expected next year’s budget to be focused on diversifying the economy by seeing to it that funding was available especially to the rural areas.

“When you have a policy, you have to attach the budgetary means to it. Be consistent, in that when you say you want to focus on agriculture, see to it that all the policies you would like to have in place are also covered with funding,” he said.

[Time to start taxing the mines - MrK]


And ambassador Molenaar has urged the government not to intervene too much in the diversification of the economy, but instead leave it to the private sector so that they can export the produce.

[Ehhmmmm... no. Sorry, ambassador Molenaar. - MrK]


“If you look at the region, South Africa which is the powerhouse, they are less and less producing food so that is an opportunity for surrounding countries like Zimbabwe, Zambia, Mozambique, Botswana, Namibia to produce enough food and export it.

[A dumb idea. Most of South Africa's land is not in use, they have high unemployment, and need to start setting up EU size family farms of around 100 hectares. That is the only way to redistribute the land, and secure the food supply. South Africa is going to have to depend on imported food from SADC? That's absurd. - MrK]


The markets are there, the DRC Democratic Republic of Congo…a lot of people say DRC is an untapped potential. And when you look at southern Africa, inter-regional trade is still fairly modest and that should grow,” said Ambassador Molenaar.

[I prefer preferential regional trade over global trade, but local production and consumption maximize both job creation and wealth accumulation. - MrK]


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