Maravi

Egawa hails PF's macroeconomic policy

Egawa hails PF's macroeconomic policy
By Gift Chanda
Mon 08 Oct. 2012, 14:00 CAT

JAPANESE Amba-ssador to Zambia Akio Egawa says the PF has been successful in macroeconomic management of the country during its one year in office. In an interview, Ambassador Egawa commended the government for maintaining the country's economic momentum.

"Overall, the economic management has been successful in the one year," he said citing the country's economic growth which is projected at above seven per cent and inflation in single digit at year end.

The PF, which ended the MMD's 20-year rule in an election that saw a peaceful transition of power last year, clocked one year in office over a week ago.

"The projection for economic growth for this year is more than seven per cent and also inflation rate has been kept in single digit so all in all, the PF government has been successful in macroeconomic management," Ambassador Egawa said.

Zambia's economy has grown by an average six per cent over the past three years and confidence that it will continue on this trajectory was evident in the interest shown in its debut 10-year Eurobond on the International market.
Further, GDP in Africa's largest copper producer is projected to grow at over seven per cent this year.

Nevertheless, Ambassador Egawa noted that the country's economic growth was still not matching reduction in levels of poverty, especially among rural households.
He said poverty remains one of the biggest challenges the country was currently facing.

Poverty levels in 2006 stood at about 65 per cent of the total population but have slightly improved, dropping to 63 per cent in 2010, according to Central Statistics Office data.

"Despite the successful economic growth in the nation, there is still a big segment of the population living in poverty," Ambassador Egawa said.
"But again the government has shown that it is doing its best to address a bulk of this challenge. And Japan appreciates the government's development efforts towards reducing poverty in Zambia."

He further said his country would continue providing favourable assistance towards the government's efforts to addressing poverty.

Ambassador Egawa noted that investment in education was one of the important measures the government could use to address the problem of poverty.
He said innovation and technology is very important to Zambia's development "but more importantly and generally, education is".

"Again here Japan wants to assist the government's efforts in the education sector. This year Japan has provided roughly more than US $3 million to the education sector pull fund. This is a new thing for Japan to do," he said, adding that "Japanese assistance in Zambia in the past has been through project assistance for roads, bridges, and schools."

Ambassador Egawa further said there has been a growing interest by Japanese investors to come and invest in Zambia lately following the strengthening of bilateral ties between Zambia and Japan.

"Our corporation with Zambia lately has been expanding," he said.
"In terms of official development assistance (ODA), Japan last year provided about US$70 million to Zambia. This was a record high figure for Japan in the past 20 years. And we are continuing the assistance to Zambia, for instance a major project is to be signed later this year for the construction of the Kazungula Bridge which will connect Zambia and Botswana."

He said the construction of the Kazungula Bridge would significantly contribute to improving Zambia's trade balance sheet as more goods would be transported through the bridge.

posted by MrK @ 3:15 PM