Resources to implement SNDP inadequate, says Musokotwane

Sunday, April 17, 2011

Resources to implement SNDP inadequate, says Musokotwane

Resources to implement SNDP inadequate, says Musokotwane
By By Mutale Kapekele
Sun 17 Apr. 2011, 03:59 CAT

ZAMBIA’s resources under the World Bank’s International Development Association window are not adequate to support the level of investment needed to implement the Sixth National Development Plan, finance minister Situmbeko Musokotwane said in Washington DC on Thursday.

According to a press statement made available by Zambian embassy in Washington DC first secretary for press Ben Kangwa, Dr Musokotwane said this when he met with the World Bank managing director Ngozi Okonjo Iweala at her office.

Dr Musokotwane said with Zambia attaining the lower middle income status country, it was the government’s view that the World Bank should grant it access to the International Bank for Reconstruction and Development (IBRD) Financing by reclassifying Zambia as anIDA/IBRD blend country.

This, he said, would assist Zambia access the level of resources required to support the SNDP.

Dr Musokotwane also urged World Bank to streamline the approval of projects processes.

He said Zambia had experienced extended delays in the country’s projects approvals, giving as an example the Irrigation Development and Support Project which took many years to be approved.

The World Bank board of directors approved a US $115 million credit for the Irrigation Development and Support Project (IDSP) on April 7, 2011 which will enable Zambia to overhaul its irrigation sub-sector.

In the SNDP, one of the goals is to increase and diversify agriculture production and productivity with a view to raising its contribution to the country’s Gross Domestic Product (GDP) by 2015.

The project, which will be developed in proposed selected sites, is expected to be implemented over seven years, up to June 2018.

Dr Musokotwane said the projects in the SNDP required huge amounts of resources and that the government expected the World Bank to play a key role.

On account of increased mining tax collections, he said the fiscal position was generally favourable.

[Not increased collection of mining taxes, increased collection of PAYE - workers wages. - MrK]

On Zambia’s economic performance, Dr Musokotwane told the World Bank that in 2011 the country expected positive performance, with growth estimated to 6.8 per cent and to average 6-7 per cent per annum over the next five years.

He said the recent two ratings of B+ that Zambia was assigned by Fitch and Standard and Poor in March 2011 would enable the country to tap into the international markets to raise financing for infrastructure development and to access the international market in order to issue a bond within the course of this year.

In response, Okonjo-Iweala said she was optimistic that Zambia would continue sustaining strong economic growth recorded in the past five years coupled with the high global rating on account of consistent prudent economic management among various factors.

She said the fact that Zambia was among the top ten economic performers in Africa gave hope to the Bank that a lot has been done.

Okonjo-Iweala advised that despite all the positives, Zambia still had to work on infrastructure development.

Labels: SITUMBEKO MUSOKOTWANE, SIXTH NATIONAL DEVELOPMENT PLAN, World Bank