Diversifying the economy: Reducing risks from mining
June 20, 2012 |
MINING MATTERS By CHAMBERS OF MINES ZAMBIA
THE present over-dependence on copper is true to the proverbial saying of ‘putting all eggs in one basket’. It has been apparent, from many stakeholders in the economy, that the mines hold the key to the country’s overall economic growth through increased GDP, tax revenues, spill-over effects to other sectors of the economy and employment.
This line of thought has inevitably led to stakeholders exerting a lot of pressure on the mines to contribute much more than they are doing, often regardless of the world economic environmental factors and the risks against which the sector is operating.
Specifically, there is often little consideration of the costs of production of individual mines because typically, revenues are taken as the yard stick in the performance of the mines.
There is, therefore, a strong case for policy measures to be implemented that facilitate the growth of other sectors in order to reduce this burden on the mines. For instance, the mines are not large job creators due to the capital intensity of their operations, yet agriculture and manufacturing could employ larger numbers of people. Statistics show that the country’s potential in agriculture is not fully exploited. Out of a total of 7.5 million hectares of land, 4.2 million (58 percent) hectares are classified as medium to high potential for agricultural production while 12 percent is suitable for arable production, with only an estimated 14 percent currently cultivated.
These two sectors, agriculture and manufacturing, also have the greatest potential for creating value-addition compared to mining. The tourism sector also holds greater potential to create jobs at various skill levels than mining. Each of these other sectors individually and collectively would substantially add to economic growth; increase the tax base and earn foreign exchange.
Getting other sectors moving, so to say, cushions the economy from externally-induced shocks and internal imbalances from time to time. For instance, the effects on the Zambian economy of reduced demand for copper and the consequential low world prices could be off-set by exports of processed agricultural goods or electricity; ensuring stability of the exchange rate of the Kwacha and keeping inflation low.
There is also a long-term perspective to this. The mines are a wasting asset and sooner or later, the ore will finish. It is also acknowledged in economics that the mines have a technical life and an economic life. The technical life refers to the size of the ore reserves and the extractive period given a specific technology. This can go on for the period of the ore availability. But there is also the economic life; which can be any time soon. This refers to viability of mining operations. This is influenced by many economic factors, including demand, supply and prices; financial markets; developments in technology; changes in fiscal and monetary policies, among others. Each of these has the potential to make mining not viable and mines can close, like some did during the world financial crisis of 2008. Most mineral-dependent countries without a diversified economic base were caught truly napping, budgets were thrown to the wind, jobs were lost, inflation rose, shortages of goods and services were experienced and some governments almost crumbled due to discontents.
There is, therefore, more to the need for the diversification of the economy away from mining to other sectors but should not mean abandoning mining. Info@mines.co.zm
Labels: CHAMBER OF MINES, ECONOMIC DIVERSIFICATION, MINING
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Ms Obiageli Ezekwesili urges Zambia to focus on further diversification of the economy
TIME PUBLISHED - Thursday, April 19, 2012, 9:02 pm
World Bank Vice President for the Africa Region, Ms Obiageli Ezekwesili has urged Zambia to focus on further diversification of her economy to create new jobs and to spur faster economic growth.
“Diversification generates jobs in agriculture, tourism, transport and other sectors such as road infrastructure,” she said when she met with Minister of Finance and National Planning Mr. Alexander Chikwanda.
She expressed confidence in Zambia’s economic potentials and stressed that “it has been a delight to work with Zambia over the years”
Ms. Ezekwesili said the World Bank would continue to support Zambia’s economic growth in areas such as tourism, infrastructure development, energy and education.
The Vice President called on the government to take full advantage of the warm relations the World Bank group has offered to advance the cause of development for Zambia.
Meanwhile, Finance and National Planning Minister, Alexander B. Chikwanda said that the Zambian people had very high expectations from the Zambian government to deliver real improvement in their lives since the Patriotic Front came to power.
“Considering the fact that the coming of the new Government coincides with the development of the Bank’s Country Assistance Strategy (CAS) for Zambia, the government is keen to work with the Bank in this process,” he said.
Some of the key areas that the Country Assistance Strategy will take on board include skills development, infrastructure development, particularly for rural areas, agricultural development particularly irrigation, livestock development and the development of market infrastructure.
Others are the decentralization in order to ensure that Government programmes are implemented more efficiently and equitably and the development of the private sector especially the medium small and micro enterprises so that they can play their full role as the engine for growth and job creation.
The Minister, was however, concerned to note that the level of development support that the Bank has provided to Zambia in recent years was below the level desired by the Government.
He appealed to the Bank to consider increasing the support provided to Zambia and the country’s desire to access Bank resource through the blend of the International Development Association (IDA) and the International Bank for Reconstruction and Development (IBRD) resources.
Labels: ECONOMIC DIVERSIFICATION, IMF, NEOLIBERALISM, OBIAGELI EZEKWELISI, World Bank
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Zambia needs to move from dependecy on copper - World Bank
By Gift Chanda
Mon 26 Mar. 2012, 12:00 CAT
THE World Bank says Zambia urgently needs to diversify its economy and end dependence on copper for it to attain the Vision 2030.
Visiting World Bank managing director Sri Mulyani Indrawati observed that the Zambian economy is over-dependent on a few commodities and few activities, a situation she said made the economy very vulnerable.
She said the economy would need to be "rebuilt and diversified" for the country to achieve the goals and objectives under the country's Vision 2030.
Indrawati said this when she launched the One-Stop Shop and Business E-registry in Lusaka on Thursday.
The E-registry simplifies and shortens the registration process by enabling firms to proceed with all licensing steps at a single location.
"Having this one-stop service is a very strategic first stop for Zambia because it will easy and provide all the necessary information for the business community and the private sector initiative to get all the necessary information and most important finish all the registration under one place in an easy process," Indrawati said.
She said the initiative would make Zambia improve in terms of the way it does business in the region.
Indrawati said reform processes had put Zambia in the top position compared to other sub-Saharan African countries when it comes to the ease of doing business.
"Zambia is now ranked seventh in Sub-Saharan Africa when it comes to the overall ease of doing business. But that is not adequate," Indrawati said.
"Simplifying procedure and ensuring that you ease doing business here is actually the first step for the private sector to prosper as well as create jobs in this country."
She said the government would need to review all policies that have been hampering economic diversification and employment creation.
Indrawati also called for capacity creation in institutions relevant to the country's economic growth.
She said the World Bank stood ready to assist Zambia in its economic diversification quest.
"We are pleased to be Zambia's partner in working towards a sustainable model of growth which relies not only on the exploration of natural resources, but also on the development of the country's private sector," said Indrawati.
In sub-Saharan Africa, entrepreneurs often find it expensive and slow to both open and maintain a business, hampering their ability to expand their enterprise and create jobs.
Zambia's Private Sector Development Reform Programme (PSDRP) has been accelerating regulatory reforms in a number of key sectors with an aim of reducing the cost of doing business in the country.
It has already expanded the one-stop shop in Livingstone and plans to open similar offices in other parts of the country.
Commerce minister Robert Sichinga said the government would create one-stop shops in all provinces.
"The one-stop shop and e-registration are two concrete steps we are taking to empower business in Zambia," said Sichinga.
"We are committed to an all-encompassing programme of business reform which will have a lasting impact on the private sector."
Labels: COPPER, ECONOMIC DIVERSIFICATION, ROBERT SICHINGA, SRI MULYANI INDRAWATI, World Bank
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UN coordinator urges accelerated economic diversification
By Florence Bupe
Tue 05 Oct. 2010, 04:00 CAT
UNITED Nations resident coordinator Kanni Wignaraja has advised government to accelerate efforts towards economic diversification as a means of achieving the 2015 Millennium Development Goals (MDGS).
In her statement on the progress of Zambia’s achievement of the MDGs, Wignaraja said there is a need to accelerate and focus on development challenges facing the country, such as the diversification of the economy.
“Overall, Zambia’s progress towards the MDGs is commendable. However, increased action is urgently needed to scale up the attainment of the MDGs by 2015,” Wignaraja said.
“Greater efforts will be needed to further enhance environmental sustainability, reduce further maternal mortality and address gender inequalities.”
Wignaraja also called on government and other stakeholders to seriously identify ways of averting the negative effects of climate change.
She observed that the country’s key economic sectors such as agriculture and tourism were largely affected by the climate and that reluctance to tackle climate change would have disastrous effects on the growth of the economy.
“In Zambia, any change in the climate can spell disaster. With over 70 per cent of Zambians depending on agriculture, even a slight change in temperature can affect crops like maize with catastrophic consequences for livelihoods,” said Wignaraja.
“Climate change has also begun to affect Zambia’s national tourism industry.”
And foreign affairs minister Dr Kalombo Mwansa observed that cooperating partners were an integral part in the achievement of MDGs through enhanced economic growth.
“The positive economic growth that Zambia continues to enjoy has been made possible with the support of our cooperating partners…,” said Dr Mwansa.
Labels: ECONOMIC DIVERSIFICATION, KALOMBO MWANSA, KANNI WIGNARAJA, MDGs
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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]
Labels: AMBASSADOR, COPPER, ECONOMIC DIVERSIFICATION, HARRY MOLENAAR
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COMESA ministers endorse proactive approach in handling external shocks
By Mutale Kapekele
Thu 02 Sep. 2010, 14:40 CAT
COMESA ministers of foreign affairs have observed that the region should develop some financial and economic muscle if it is to be shielded from external economic shocks.
Moving a vote of thanks on behalf of her counterparts, during the official closing of the 10th meeting on Monday at Royal Swazi Spa Hotel, in Ezulwini, Swaziland, Malawi foreign affairs minister Professor Etta Elizabeth Banda said the region had economic potential which was yet to be realised.
“I believe our region has a lot of economic potential but these can only be realised if we comprehensively address the conflicts in our region,” Prof Banda said.
“As you are aware, we cannot certainly sit back and wait to feel the impact of external economic crisis because it will not only be too late to be able to do much, but it will also be much more costly.”
Prof Banda said Africa was endowed with abundant natural resources which were not only good for agriculture but also supported the harnessing of technologies like geothermal and solar technology.
She added that Comesa should take advantage of the region’s vast market, a wealth of human resource and affordable labour to generate projects that would benefit the region, saying these were the tools that could help make the region an economic powerhouse.
Prof Banda urged Comesa member states to unite if the goals of regional integration were to be achieved on time.
“We, however, also need to see ourselves as one region and not as 19 member countries because there is strength in unity,” said Prof Banda.
“On our part as ministers that consider the modalities of peace and security for the region, we would like to reassure you that we shall play our part and do everything possible to create an enabling environment for the development and integration of our region.”
Labels: COMESA, ECONOMIC DIVERSIFICATION, ETTA ELIZABETH BANDA
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CUTS International recommends more investment in mineral refineries
By Fridah Zinyama
Thu 02 Sep. 2010, 14:40 CAT
CONSUMER Unity and Trust Society (CUTS) International has said Zambia needs more investment in refineries to improve copper and cobalt into finished products if real benefits of trading these extractive products is to be realized.
In a press statement, CUTS - International acting centre coordinator Patrick Chengo stated that trade in some countries like China had led to poverty reduction, which was why there was increasing concern that trade is yet to benefit poor countries like Zambia.
“Zambia heavily relies on the extractive industries, copper and cobalt, for its trade, but the impact on poverty reduction has been minimal,” he stated.
“The underlying factors have mainly been that the country has not fully diversified from its traditional exports which are mostly in form of raw and not finished products.”
Chengo stated that this was why investment in agriculture was also important if Zambia was to manage her diversification agenda.
“The Maputo Declaration of 10 per budget allocation to the agriculture sector is a starting point for Zambia’s strengthening of the diversification process,” he noted.
Chengo, however, stated that despite the fact that the country had recorded some steady growth steered by improved performance of the extractive industries, this growth had not translated into poverty reduction.
Poverty levels in Zambia still stand at over 65 per cent.
“This now brings closer the issues raised by United Nations Conference on Trade and Development (UNCTAD) where African countries, Zambia inclusive, have been challenged to consider engaging and replicating developing countries’ experiences that have translated into growth of their economies,” he stated.
Chengo noted that it was important that trade with countries like China, India and Brazil resulted in economic diversification rather than simply the sale of African commodities and raw materials, as indicated in the UNCTAD 2010 Africa trade report.
The report stated that growing trade, finance and investment with other developing countries was an opportunity for Africa to diversify production, acquire technology and develop regional markets.
Labels: CUTS, ECONOMIC DIVERSIFICATION, PATRICK CHENGO
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COMMENT - If only Zambia had access to the funds to diversify the economy. The types of hundreds of millions a year that would come from the Windfall Tax... Now that would be revolutionary thinking, 'if you can call it thinking' (to quote Dr. Situmbeko Musokotwane).
Musokotwane links economic volatility to excessive dependence on copper
By Abigail Chaponda in Ndola
Wed 17 Feb. 2010, 04:00 CAT
FINANCE minister Dr Situmbeko Musokotwane has said Zambia’s dependence on copper as the only large medium source of economic growth and foreign exchange earnings has led to tremendous economic volatility over the last decade.
During a Copperbelt business seminar on trade and investment opportunities at Mukuba Hotel in Ndola yesterday, Dr Musokotwane said the excessive dependence on copper left the economy vulnerable to external shocks such as international commodity prices, exchange rates and global trade volumes.
He said increased investments in sectors like agriculture, tourism and manufacturing could help build economic resilience in the face of external shocks.
Dr Musokotwane said there was need to increase returns to Zambia’s resource exploitation through value addition. He said Zambia’s copper reserves must be treated as a gift to be shared across generations.
“We ensure that we derive maximum returns from each tonne of copper that is mined. This can only be achieved through investment into processing that adds value in the sector. As government we will continue to focus on providing a welcoming environment to both domestic and foreign investment,” he said.
Dr Musokotwane said the government had been keen on promoting value addition and import substitution.
“The ongoing development of the Chambishi M-Facility Economic Zone as a centre for excellence for metal technologies is an embodiment of these principles. To date more than eight firms have been licensed to operate in the zone, with the anchor being the US $300 million Chambishi Copper Smelter. When completed, firms operating within the zone are expected to bring in close to US $900 million in annual turnover.”
He said the other area of concern was the poor quality of the rail infrastructure.
Dr Musokotwane revealed that a Chinese team would be visiting Tanzania Zambia Railways (TAZARA) to assess the railway line.
He said investment into the Copperbelt was an integral part of the government’s diversification and value addition strategies
Dr Musokotwane challenged Zambians to take up challenging investment opportunities in order to help revamp the economy.
“The Democratic Republic of Congo and Angola are two vast markets that rely heavily on neighbouring countries for imports. As a nation, however, we have not taken advantage of these prospective markets. Most of DRC’s food imports come from South Africa, and Angola relies heavily on Brazil for poultry imports. Yet these are two commodities that have abundant potential in Zambia particularly here on the Copperbelt,” he said. “I speak with confidence when I assure you that chickens consumed in Angola do not have to speak Portuguese and the Angolan market would just be as welcoming to chickens from Zambia.”
He said the growing investment in the agriculture sector had attracted a US $50 million investment by Chayton Capital into dormant agricultural farms on the Copperbelt and Central provinces.
And Dr Musokotwane urged Zambians not to listen to people who claimed that investors would steal local people’s jobs.
“Investors are good, they are not going to steal your jobs, and they are going to create jobs. Investment is one of the pillars of Zambia’s economy,” Dr Musokotwane said.
And Copperbelt minister Mwansa Mbulakulima said Zambia’s economy was not competing with the southern region because Zambians lacked confidence to take up big challenges.
Mbulakulima also said Zambia would not develop because of politicking.
“The problem we have is politicking. Whenever someone says that investors are coming, a lot of people will rise to start politicising. We need to change from this, Zambia is our country and when good things come, we all benefit,” said Mbulakulima.
Labels: COPPER, ECONOMIC DIVERSIFICATION, SITUMBEKO MUSOKOTWANE, WINDFALL TAX
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COMMENT - Why fund agriculture and manufactring or infrastructure when you can fund tourism? Tourism will never create a sound economy on it's own.
Musokotwane urges diversification of Zambia’s economy
By Edwin Mbulo in Livingstone
Mon 09 Nov. 2009, 04:00 CAT
FINANCE minister Situmbeko Musokotwane has noted the need to diversify Zambia’s economy especially in the tourism sector. Dr Musokotwane said there is need to grow the tourism sector in Livingstone and diversify Zambia’s economy away from mining.
He is in Livingstone for a reconnaissance visit of the greater Livingstone Tourism Area Action Plan (TAAP) Investment sites.
“You may recall that we have been talking on the need to diversify our economy even when we are growing the mining sector. We have spent a lot of money growing the Northern Circuit but we have not forgotten the need to expand tourism in Livingstone,” he said.
Dr Musokotwane added that there was also need to find more land for the development of the hospitality industry in the tourist capital.
“This is the vision we have. Our approach to develop the sector is also the need for land and energy. We need land for building the infrastructure such as hotels, conference centres and entertainment resorts hence the involvement of the ministries of lands and energy,” said Dr Musokotwane.
And tourism minister Catherine Namugala said there cannot be development in the tourism sector without good infrastructure such as roads and energy for hotels.
“We are moving in together as there is need for infrastructure if we are to develop the industry, we need land and power for any hotel to be built. Our vision is to diversify the economy and in the tourism sector we have seen developments in Kasaba Bay and the Northern Circuit,” she said.
Namugala said her vision was to see more tourist visits to Livingstone by developing more tourism spots.
“Right now the average time a tourist spends in Zambia is four days, we need to work on the other tourism spots so that we increase their stay,” said Namugala.
And lands deputy minister Allan Mbewe said his ministry would support the growth of the tourism sector through the provision of land.
Labels: ECONOMIC DIVERSIFICATION, SITUMBEKO MUSOKOTWANE, TOURISM
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CBU lecturer urges diversification of C/belt economy
By Mwila Chansa in Kitwe
Wed 04 Nov. 2009, 04:00 CAT
COPPERBELT University (CBU) School of Business Dean Dr Shadreck Chama has said there is need to look at new and innovative ways of diversifying the Copperbelt economy before it is too late. And CBU School of Business Lecturer Professor John Lungu has observed that no meaningful diversification will occur if there is no emphasis on entrepreneurship.
During an inception workshop dubbed 'Learning from local economic development practice to strengthen entrepreneurship in Zambia's Copperbelt' held at Shebourne Guest House in Kitwe yesterday, Dr Chama said the recent experiences arising from the global recession were a wake-up call that Zambia and the Copperbelt in particular could not forever depend on copper.
The inception workshop was between CBU and the Centre for International Development and Training (CIDT) of the United Kingdom's Wolverhampton University.
Dr Chama said there was need to look for alternatives and imagine how the Copperbelt would be without copper.
He said there was urgent need to diversify and take entrepreneurship seriously.
And Prof Lungu said the business community was the only one capable of carrying out diversification through entrepreneurship.
He observed that although the Copperbelt had produced wealth that had sustained the country's economy since 1928, the sector had been steadily declining since the 1970's and that it was incapable of creating as much employment as it was in the past.
Prof Lungu said most mines were coming to the end of their productive lifespan and that were likely to close by 2017.
"So we have to ask ourselves, what will be Copperbelt without mining?" he said. "This is where we have to re-think and evaluate the role of CBU in restructuring the local economy. We need to make strong linkages between ourselves and industry."
He observed that over the years, universities, CBU included, had been working in isolation from what was happening in the communities surrounding their locations and that there was need for this trend to change if people were to appreciate universities.
Meanwhile, CBU Vice Chancellor Professor Mutale Musonda said CBU was eager to make a contribution on how job losses could be reduced using some strategies employed by other countries in turning around their economies.
Prof Musonda observed that job losses arising from the global economic downturn had sharpened existing needs for local economic development agenda focused on generating employment and thus on using local institutional capacity to upgrade entrepreneurial skills and enhance the employment prospects of students and other economically active people.
Labels: CBU, COPPERBELT PROVINCE, ECONOMIC DIVERSIFICATION
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Erosion of crop diversity worrying
By Sifelani Tsiko
MALAWI and most other African countries need to come up with strategies and policies to promote agro-biodiversity conservation to minimise the impact of climate change and other natural disasters on the livelihoods of resource-poor farmers, a top Malawian plant breeder says.
In a wide-ranging interview in Lilongwe recently, Dr Moses Maliro, a plant breeder at the University of Malawi Bunda College of Agriculture, told this writer that the rapid loss of diverse cultivated crops and their wild relatives will affect the poor and threaten the future of agricultural development in Malawi and most other African countries.
"The impact of climate change and population is quite damaging to the livelihoods of the poor farmers.
"We need to strategise and come up with policies that promote agro-biodiversity conservation to enhance food security and help our poor farmers to cope with this looming climate change disaster," he said.
"Monoculture and the aggressive promotion of improved varieties have forced farmers to neglect their own landraces. Smallholder farmers’ efforts to promote crop diversity must be supported by governments, international partners and local business community."
Dr Maliro said the preservation and use of crop diversity is important to the more marginal diverse agricultural environments where modern plant breeding has had much less success.
He said farmers in these areas tend to be poorly served by public research and extension system.
"Farmers are neglecting their own traditional crop varieties and their wild relatives in favour of monoculture (maize) and other market-driven crops such as cotton and others.
"But when there is a drought and other natural disasters, farmers survive on traditional tubers, wild species and other locally adapted crops," Dr Maliro said.
"Food aid normally comes late and is not enough, so the poor depend on these local traditional crops for survival. Why not promote them when they are so critical for our own food security?
"We should not impose improved varieties on farmers. Food security is not only about high yields, but is about sustainable production as well in case of unreliable weather conditions and climate change."
Malawi has lost a number of local crop varieties due to neglect, erosion of local indigenous knowledge systems, promotion of improved varieties, lack of incentives for locally adapted crops and other factors.
"People in Malawi used to grow a lot of sorghum and other small grains, but today you don’t see the crops. You rarely see pearl millet and finger millet, you rarely see farmers growing the crops," Dr Maliro said.
He said agricultural research institutions, governments and NGOs need to promote the growing of sorghum, millets, bambara nuts, locally adapted varieties of cowpeas (nseula or khobwe), beans (mphodza –mung bean) and other wild crop relatives.
"The mphodza bean is there in the villages, but no research is being done nor any work to support farmers to grow it on a bigger scale.
"Only the elderly people have the knowledge of these crops that Malawi is fast losing.
"The young generation and our curricula in colleges and universities must be overhauled to promote indigenous food crops which are critical with this looming climate change crisis.
"If we don’t anything to change our attitudes and support the farmers to grow these crops, the next generation will starve to death due to the damaging impact of climate change," said Dr Maliro.
"We need to conserve local crop varieties. These are very nutritious and we can use them, for example, cowpeas, to bake bread and fortify bread-making process.
"Roots and tubers are there in villages, but we are doing nothing to conserve them. Africa cannot afford to lose this diversity and the indigenous knowledge ingrained in these food crops."
Malawi and other African countries, he said, should adopt practical steps to promote small grains, roots and tubers to enhance food security, conserve crop diversity and enhance the capacity of smallholder farmers to cope with climate change-related risks.
Agricultural research institutions, he said, need support to scale up training in indigenous crops, crop seed back-up and plant breeding to help Malawi to be food secure in case of drought and other natural disasters.
Given that the majority of poor people in Africa live in villages or rely on agriculture, and that agriculture paves the way for economic growth in the poorer nations, agricultural and rural development remain a major driver for the achievement of Millennium Development Goals which seek to end hunger and extreme poverty.
Environmentally friendly agriculture such as the promotion of the growing of locally adapted indigenous food crops and rural development are key to this effort to attain MDGs by 2015.
The promotion of crop diversity tackles the malnourishment component in food security and helps the poor to escape poverty as they are able to learn, work and care for themselves and their family members.
If crop diversity issues are not addressed fully, hunger and over-reliance on food aid sets in motion an array of problems that perpetuates malnutrition, reduces the ability of adults to work and to give birth to healthy children, and erodes children’s ability to learn and lead productive, healthy, and happy lives.
Lack of promotion of crop diversity can undermine human development and the potential of most African countries to attain the MDGs.
Africa, which is home to more than 50 000 known plant species, 1 000 mammal species and 1 500 bird species, is increasingly experiencing major losses of its large and diverse heritage of flora and fauna.
According to the 2007 United Nations Food and Agriculture Organisation report, there are roughly a quarter million plant varieties available for agriculture but less than 3 percent of these are in use today.
The UN agency is concerned that with disuse comes neglect and possibly neglect of the continent’s plant food resources.
FAO further points to another worrying trend — that modern agriculture is concentrated on a small number of varieties designed for intensive farming.
This, according to the report, has dramatically reduced the diversity of crop plant varieties available for agriculture, leading to accelerated genetic erosion on the continent.
Supporting smallholder farmers to conserve crop diversity wherever possible and greater political commitment is vital to enhance food security in Africa.
This can, at least, help bring the continent a step closer to attaining MDGs by 2015.
Labels: ECONOMIC DIVERSIFICATION, MAIZE, MALAWI, ZIMBABWE
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KK urges African countries to diversify economies
Monday, July 20, 2009, 19:39
First Republican President, Kenneth Kaunda, says Africa should take advantage of its abundant natural resources in order to diversify its economies and attract more foreign direct investment.
Africa should have achieved a lot in the fight against poverty after so many years of independence.We cannot remain competitive in this world if we do not have an educated populace and a well trained manpower to run factories, mines, hospitals and schools. We can only compete by developing our human resource to provide necessary skills in order to enhance our productivity.
Dr. Kaunda said this in Johannesburg at the weekend when he received the lifetime achievement award from the African Heritage Society in recognition for his contribution to the liberation struggles in Southern Africa.
He told a 500 plus invited guests at the Sandton International Convention Centre that Africa should have achieved a lot in the fight against poverty after so many years of independence.
Dr. Kaunda said African countries have remained underdeveloped due to a number of factors some of which are due to the manner in which it is conducting its trade with the rest of the world.
He said Africa’s trade with other countries is lopsided as it is to a large extent only exporting raw materials.
Dr. Kaunda said Africa needs to develop its manufacturing sector to enable it attain sustainable comparative advantage and compete highly with the rest of the world.
He also cited agriculture as one of the neglected areas in Africa which could help in making many countries be self sufficient.
He said a well run agriculture sector could help establish many agricultural based industries and ensure food security for its people.
Dr. Kaunda, further, said the tourism sector was another sector which contributes enormously to the Gross Domestic Products, GDP, of many African countries.
He, however, said this sector has largely been neglected and the situation had been exacerbated by the current financial crisis which has affected international travelers.
Dr.Kaunda said the education and vocational training were critical to the continent’s development adding that the continent can only be competitive by having a qualified human resource.
“We cannot remain competitive in this world if we do not have an educated populace and a well trained manpower to run factories, mines, hospitals and schools. We can only compete by developing our human resource to provide necessary skills in order to enhance our productivity,” he said.
ZANIS
Labels: ECONOMIC DIVERSIFICATION, KENNETH KAUNDA
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Zambia’s economic outlook dependent on diversity – World Bank
By NANCY MWAPE
ZAMBIA’s economic outlook is dependent on how new sectors of growth are identified says the World Bank.
World Bank country manager for Zambia, Kapil Kapoor said the country’s major problem is that, the economy is so vulnerable to international commodity price fluctuations due to the continued dependence on mining. This exposes the country to volatility.
Dr Kapoor said in an interview in Lusaka that economies that are so much dependent on one sector find it difficult to manage volatility.
“When prices increase for copper on the international market, your exchange rates strengthen and when prices fall, your exchange rate depreciates,” he said.
Dr Kapoor said businesses find it very difficult to operate in unstable environment where the exchange rate is volatile.
“There is need to find ways of reducing this volatility. Dependence on mining will continue to subject the country to volatility, Am not saying mining is not important, but I think it should be one element in the overall growth strategy of Zambia,” he said
Dr Kapoor hoped that over time, the mining sector will decline as a major part of the economy to allow other sectors to grow in importance.
He said the economic outlook for Zambia is not dependant on money released from donors citing the recent US$ 256.4 million provided by the International Monetary Fund (IMF).
He said the funds released by the IMF will help the Bank of Zambia to better manage its exchange rates and augment reserves.
“The world is in for a protracted economic crisis and it requires concerted action on the part of Government to make sure that the economy can be put on sustained fitting.
This goes beyond any kind of assistance that any donor can provide. US$200 million or US$ 500 million is a very small amount of resources that a country like Zambia needs in order to bridge the infrastructure gap,” he said.
Dr Kapoor said for energy sector alone, Zambia needs about US$ 5 billion of investment of which rural electrification will require about US$ 1 billion.
He said to grow the economy, there is need look at how agriculture, tourism and manufacturing can grow to diversify the economy.
“Zambia needs to exploit hydro potential, reduce the cost of doing business and get the manufacturing sector growing without assistance from the donor community like the World Bank, IMF or the other co-operating partners,” he said.
Labels: ECONOMIC DIVERSIFICATION, KAPIL KAPOOR, World Bank
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COMMENT - Tourism? How about agriculture and manufacturing?
Promote other sectors of the economy, urges Morgan
Written by Moses Kuwema in Kasama
Saturday, April 18, 2009 4:34:27 PM
UNITED Nations Development Programme (UNDP) country director Viola Morgan has said there is need for Zambia to scale up its efforts in promoting other sectors of the economy such as tourism in order to develop.
Speaking when she paid a courtesy call on Northern Province minister Charles Shawa on Thursday, Morgan said Zambia was blessed with a lot of natural resources which need to be exploited.
“As a country, I think there is need to move to other areas like tourism. I was in Mpulungu the other day where I saw the Lake Tanganyika and I think it remains to be a potential for development,” she said.
Morgan said there was need to improve infrastructure such as roads for tourists to easily find their way to tourist destinations.
Morgan also said the UNDP was concerned about the livelihood of Zambians, noting the need for the organisation to strengthen its ties with the government to foster social and economic development and an exchange of ideas.
And Shawa said there was need to look at sustainable management of resources.
Shawa said Northern Province had many waterfalls which needed to be exploited.
“We need to see how animals should be preserved. Most people here depend on farming not in a commercial line and we are looking at how they can diversify in keeping animals. And people from the new ministry of fisheries are here to see how it can be improved,” said Shawa.
Labels: ECONOMIC DIVERSIFICATION, UNDP, VIOLA MORGAN
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Ezekwesili urges developing countries to transform economies
Written by Florence Bupe
Tuesday, April 07, 2009 3:54:44 PM
WORLD Bank vice-president for Africa Obiageli Ezekwesili has challenged developing countries to use the global economic downturn as an opportunity to rapidly transform their economies.
Ezekwesili said African countries had the capacity to convert their economies through diversification of growth sources, reforming policies and strengthening governance.
“I hear leaders tell me that their countries would develop faster if they had more resources. I believe that resources without the right policies will not work,” she said.
Ezekwesili observed that in order to effectively transform their economies, developing countries required political will, accountability and conducive policies.
She said countries needed to reform and create an enabling environment for both local and foreign investors.
“After this crisis ebbs, foreign investors will return but they will be cautious and invest first in those countries that have kept to the reforms they had initiated. Investors will also be interested in countries that have demonstrated a willingness to strengthen governance and embrace the rule of law,” she said.
She said diversifying sources of growth was a more certain way to sustainable development.
Ezekwesili called for serious investment in infrastructure development as a means of enhancing development in key sectors such as agriculture that would lead to viable economic diversification.
Labels: ECONOMIC DIVERSIFICATION, OBIAGELI EZEKWELISI
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Adhere to governance agenda, cooperating partners urge govt
Written by Kabanda Chulu
Tuesday, March 31, 2009 4:44:44 PM
COOPERATING partners yesterday challenged the Zambian government to demonstrate continued political commitment towards the governance agenda and reduce economic dependency on the copper mining sector. And finance minister Dr Situmbeko Musokotwane has said the effectiveness of aid in Zambia must be examined to ensure that it is targeted during the next national development plan.
During a High Level Policy Dialogue in Lusaka, Cooperating Partners Group chairperson and World Bank country manager Dr Kapil Kapoor said there had been a gradual strengthening of oversight institutions and increased transparency in public financial management.
He said despite improved macro economic growth, there had been slow progress in addressing key policy constraints such as reducing the cost of doing business and improving productivity and competitiveness of non-mining sectors.
"While we acknowledge progress being made in several areas, the majority of Zambians continue to live in poverty and only three per cent of rural population has access to energy and some businesses need as many as 50 licences to operate," Dr Kapoor said. "Accelerating growth, reducing poverty and improving service delivery will require implementing reforms across several sectors, especially agriculture, energy, telecommunications and the public service and we are encouraged by the policy intentions expressed in the Presidential address to parliament that was reinforced by commitments made in the 2009 budget but it will be important for government at the highest level to demonstrate continued political commitment towards the unfinished governance agenda."
He observed that diversifying out of copper has been a much stated objective of Zambian leadership for several years.
"The goal of diversifying the economy away from copper has not been achieved and over 70 per cent of foreign exchange earnings still come from copper hence being vulnerable to cyclical price fluctuations," Dr Kapoor said. "The dependency on mining and the limited progress made in developing sectors like tourism and agriculture has also meant that large sections of the Zambian population have not been able to benefit from the commodity boom, resulting in a growing service delivery gap between urban and rural Zambia."
And Dr Musokotwane said the role of aid has been critical in Zambia's national development efforts hence the need to ensure that it is channelled towards development goals.
"As we begin creating the sixth national development plan, the effectiveness of aid must be examined to ensure that it is optimally targeted since a large number of projects continue to be funded outside the budget and this continues to pose difficulties in measuring both the impact if such aid as well as its effectiveness and alignment to national development goals," said Dr Musokotwane.
Labels: ECONOMIC DIVERSIFICATION, KAPIL KAPOOR, SITUMBEKO MUSOKOTWANE
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