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
Read more...
Africa is on edge of economic boom - Ezekwesili
By Kabanda Chulu in Kitwe
Sat 04 Sep. 2010, 20:10 CAT
WORLD Bank vice-president Obiageli Ezekwesili has observed that Africa is turning the corner towards the path of an economic rebound.
Officiating at the inaugural Africa-Singapore Business Forum held in Singapore City on Thursday, Ezekwesili stated that Africa’s resilience during the recessions and its successes indicate a continent on the edge of economic boom.
“If I had been invited to speak to you a few years ago, my remarks would have been greatly influenced by the adverse impact from the food, fuel and financial crises on Africa but I believe that the continent is perhaps at the about the same point now as where India was 20 years ago and where China was 30 years ago, just before their economic booms set in,” Ezekwesili stated.
“Africa is the future of the global economy and Singapore is, among all ASEAN countries, the largest investor in Africa in terms of cumulative FDI with US$3.5 billion invested across a broad range of industries and Singapore is a trading nation and a vital node in global trade flows as the physical gateway to Asia.”
She highlighted the success stories that had helped to open the eyes of the world to a different Africa from one of conflict and tyranny to one of reform and economic stability.
“Just ten years ago, The Economist dubbed Africa ‘The Hopeless Continent.’ But this year, The Economist in recognition of the huge dividends that Africa is reaping after some tough choices such as mobilising domestic resources, redirecting wasteful spending, investing in basic education and health, reforming public utilities and reducing protectionist policies, has named Africa the ‘economic lion’ ready to take its place beside the Chinese dragon and the Indian tiger,” Ezekwesili stated.
“Among the successes: Mali’s export sector led by the mango industry, ‘Nollywood’ Nigeria’s film industry and Rwanda’s focus on tourism and ICTs, which is helping boost its economy and the efforts of women in Kenya to bring cut flowers on the world market.
But many challenges do remain in Africa and infrastructure is as a critical bottleneck with less than 25 per cent of the population of sub-Saharan Africa having access to electricity compared with 40 per cent in other low income regions of the world.”
Opening the forum, Singapore’s Minister for State for Trade and Industry Lee Yi Shyan stated that as Africa moves forward, Singapore’s experience had a lot to offer the continent.
“Singapore’s experience is a case study of relevance and our public and private sectors have accumulated knowledge in areas of mutual interest and one such area is in building and managing urban infrastructure,” he stated.
And Mo Ibrahim Foundation chairman Mo Ibrahim challenged businesses coming into Africa to ensure that they played a positive role in the sustainable development of the region and to conduct business in an open and transparent manner and respect the environment.
This Business Forum, organised by International Enterprise Singapore and the Singapore Business Federation, comes at a time when there is increasing interest from Asian countries, beyond just China, in the myriad of opportunities opening up in Africa.
Labels: GREAT DEPRESSION II, NEOLIBERALISM, OBIAGELI EZEKWELISI, World Bank
Read more...
Finance Africa’s development, Ezekwesili advises G20 nations
Written by Kabanda Chulu
Thursday, May 14, 2009 3:50:39 PM
WORLD Bank vice-president for Africa Obiageli Ezekwesili has said the next summit of the group of 20 (G20) nations must focus on financing development to minimise the negative impact of the global economic crisis on Africa.
And Ezekwesili has warned that those who may be tempted to view Africa as a case of charity will regret because the continent has become a vital and strategic business destination with many companies boasting of some of the best profit margins.
Addressing the 2009 Annual Conference on Tuesday organised by the Washington-based Society for International Development under the theme ‘Finding Common Ground on Foreign Aid’, Ezekwesili stated that despite being severely affected by the crisis, rich countries must resist the temptation to slash foreign aid and resort to protectionist policies.
“Aid cannot be the panacea (solution) either, but must act as a catalyst to trade and development because the continent now has a leadership even more committed to reforms, governing more responsibly and making the right kinds of policy choices to use any resources in transparent, efficient and accountable ways,” Ezekwesili stated. “But the United States and other rich countries should continue to provide leadership in ensuring that pledges to double aid to Africa by 2010 are honoured and this is why the next G20 summit should focus on financing infrastructure development since developing countries will be able to take advantage of trade opportunities.”
The US pledged contribution of US $3.7 billion to last year’s record US $42 billion 15th replenishment of the International Development Association (IDA), the soft lending arm of the World Bank that provides grants and interest-free credits to poor countries, is pending authorisation and appropriation before the US Congress.
But Ezekwesili argued that initiatives to stimulate the economies of developed nations should not focus exclusively on national challenges, if a truly sustainable and global recovery from the crisis was to be achieved.
She cautioned against those who may be tempted to view Africa as a case of charity.
“The continent has become a vital and strategic business destination and firms investing there boast some of the best profit margins,” stated Ezekwesili.
Before the global economic crisis, Africa was generally perceived as turning the corner. Average annual growth rates were 5.7 per cent over a decade before a ‘crisis’ that was not even of Africa’s making triggered a collapse in commodity prices, a decline in private capital flows, a decrease in remittances and a fall in foreign aid.
As a direct result of the crisis, Africa’s GDP growth is now expected to be a mere 1.7 per cent in 2009, down from earlier forecasts of 6.4 per cent and way below the average population growth rate of 3.3 per cent.
Labels: DEVELOPMENT, G20, OBIAGELI EZEKWELISI
Read more...
Global financial crisis to hit Africa the hardest - World Bank
Written by Chiwoyu Sinyangwe
Thursday, April 23, 2009 8:45:05 PM
AFRICA will be the hardest hit by the effects of the current global financial crisis with 700 thousand newly born babies expected not to reach their first birthday, a World Bank senior official said Wednesday.
And World Bank vice-president for Africa Obiageli Ezekwesili has insisted that developing countries like Zambia should maintain open-market policies despite the current global financial crisis, saying recent robust growth on the market has been driven by liberalism.
During a briefing ahead of this yearÕs World Bank/IMF Spring Meetings, World Bank chief economist for Africa region Shanta Devarajan also warned the social impact of the global financial meltdown on the continent might be exacerbated as developed countries were likely to become more averse to give more aid.
And Ezekwesili warned that Africa should not move away from market driven policies which had been behind the recent strong economic results for the continent.
Ezekwesili also said foreign aid to Africa was this year going to decrease as most donor countries continued to battle to become insular.
ÒThere is a likelyhood of serious development disaster if the countries undo market reforms due to populist pressure to move in reverse gear,Ó Ezekwesili said. ÒCountries need to continue with the market reforms because it is those reforms that have been driving growth on the continent in recent years.Ó
She also said the collapse in the economic growth on the continent might lead to political and social instability especially among volatile countries on the continent.
Ezekwesili also warned that with the collapse of the Balance of Payment (BoP) support, most African countries might face challenges financing their budgets.
ÒWe will continue to work with the Fund (International Monetary Fund) to find ways of mitigating that effect,Ó she said. Ò. . .The assistance of the Bank to Africa through the International Development Association (IDA) is by the end of this year going to increase from the targeted US $6.8 billion to over US $7 billion.Ó
The Zambian team to this yearÕs Spring meeting has been led by the finance minister Dr Situmbeko Musokotwane.
Labels: GREAT DEPRESSION II, OBIAGELI EZEKWELISI, SHANTA DEVARAJAN, World Bank
Read more...
world bank advises govt to reduce business cost
Written by Kabanda Chulu
Wednesday, April 15, 2009 3:35:16 AM
WORLD Bank vice-president for Africa Obiageli Ezekwesili has advised the Zambian government not to risk its capital by increasing its shareholding in copper mines. And Ezekwesili has urged the government to quickly implement economic reforms that will reduce the cost of doing business in Zambia.
Mines minister Maxwell Mwale recently announced that the government planned to increase its stake in the mines from the current 15 per cent to around 35 per cent to augment its decision making in the sector.
But Ezekwesili said the government should not risk its scarce resources that could be channeled to other economic sectors during the current economic crisis.
She noted that during the past years, sub-Sahara African countries, including Zambia, had recorded sustained economic growth due to economic liberalisation.
“What is happening is a phase and this is the cyclical nature of the mining sector hence whatever is happening right now such as job losses and other issues are imperative and we should not pretend that things are alright and government is always restrained with provision of resources,” Ezekwesili said.
“But why should the Zambian government risk its capital that can be channelled to other economic sectors than increasing its shareholding structure in the copper mining sector? We do understand mining is the main-stay of the country’s economy but the private sector can risk their capital and consequently pay taxes to government, so in our view government should just create and implement enabling policies to allow private sector driven economy.
“Countries that have recorded economic growth embraced free market policies and once government understands that certain sectors are better left to the private sector, the economy will grow and this pattern should not be reversed especially that the private sector also creates employment.”
And Ezekwesili, who toured various economic sites and held several meetings with the government, the private sector, media and the civil society organisations during her visit to Zambia, said the country was at the centre of economic transformation.
“Things can happen and the time is now, but government should quickly implement its policies because this is the message we got from many stakeholders, who desire to see action now,” said Ezekwesili.
“Right now, doing business in Zambia is too costly for any investor due to various obstacles, for instance, the tourism and telecommunications sector require many licenses for one to establish an entity…these sectors are able to create jobs and offer auxiliary services, so government should quickly implement its policies since people are willing to participate in the economic transformation of the country.”
Labels: MAXWELL MWALE, OBIAGELI EZEKWELISI
Read more...
Rupiah calls on leaders to give up some privileges
Written by Patson Chilemba and Kabanda Chulu
Friday, April 10, 2009 5:00:58 AM
PRESIDENT Rupiah Banda yesterday said those in leadership positions should give up some of their privileges, saying a big portion in the national budget goes towards paying salaries of only a few individuals.
And World Bank vice-president for Africa Obiageli Ezekwesili said some people she interacted with in Zambia felt that governance is very far away and removed from society.
Speaking when he met officials from the World Bank at State House yesterday, President Banda said leaders needed to give up a little bit.
"Those of us that are in positions of fortune or leadership have to give up some of our privileges. That means all leaders, politicians, ministers, civil servants. If you look at our budget for instance, the big portion of it goes to salaries of only a few people," President Banda said as he looked where ministers were seated.
"If you look at the politics of conflict that we have with Zamtel now, the 3,000 people employed at Zamtel that the issues that we are talking about would result in benefits to the rest of the 11 million people of Zambia. So it takes courage to cut through that very difficult net because the same people, the civil society all of them who will rally to the popular view. But we as leaders are not there just for popularity."
In November last year, President Rupiah Banda approved salary increments for constitutional office holders and senior government officials.
President Banda said he was very happy to have assented to the bill increasing salaries and allowances for constitutional office holders.
"On the bill, you know I assented. I am the one that signed for it. I am very happy with it because it is merely fulfilling what we normally do every year. What happens is that when the unionised workers in the public service negotiate with the government a certain percentage of increment everybody else who is entitled then gets it. We didn't get it in January as you know, we had wanted to get the other one which I refused to assent to, so I am happy to do this one and if you look at the figures it is really a very small increment," President Banda had said.
President Banda also said the government would have to take certain decisions because a leader was judged by how strong they were able to take the correct decisions.
"Even when those decisions will make certain people uncomfortable, we have to take decisions. We have a very strong team who believe in what they are doing. We will work hard to implement some of these difficult decisions because the results are just around the corner," President Banda said. "I had a long, long discussion yesterday with the Bishop of the Catholic Church, who is the head of the Catholic Church organisation, Bishop [George] Lungu and it was funny that when we finished, he was like talking my feelings."
President Banda said the government was there to deliver and take serious decisions by ensuring that tourism was resuscitated and that government did not look for cheap money to achieve that.
"Instead, look to encourage more tourists to come so that we can accumulate more money. That is why our government for instance reduced the Visa fees, the same thing with fertiliser support for our people to be supported with fertiliser. You have said it and we agree with you, it's not just the amount of money you spend on fertiliser. You have to have a good effective service. You have to have good roads so that they could move the produce," President Banda said. "And those issues in order to implement can make us temporarily unpopular, but at the end of the day when people see the results, they will realise we were right at the time that we took those steps."
President Banda thanked Ezekwesili for making contact with the people.
He said he did not take the views of the people as a criticism but that they were well meant and leaders needed to take them in the spirit they had been given.
"It's now for us leaders on this side of the table to take note of what you have said. These are some of the things that opposition parties and other opposition groups in the country are saying but they don't know how to say them" President Banda said. "You've said them very clearly and I think that we need as Zambians all of us, the parties and the government who are ruling this country. All Zambians should take note of what you have underlined, that we are the solutions to problems of Zambia."
Earlier, Ezekwesili said this moment of problems could not be any difficult an opportunity for Zambia.
She said this was the greatest window to focus on the difficult decisions that should be taken to enhance development.
Ezekwesili said Zambia had what it took to be great.
She said some people she interacted with complained that there was a lot of bureaucracy in the country and that she talked to business people who said it would be good to have regular discussions that would result in policy implementation.
Ezekwesili said the civil society wanted President Banda to admit them in his space.
World Bank country manager Dr Kapil Kapoor said Zambia had always been linked to copper.
He said when copper was doing well, the country was also doing well and when price of the commodity were low so was the economic performance.
He said rural poverty had remained unchanged even when copper prices were high.
Dr Kapoor said the country was now entering into a period of uncertainty and that the rate of growth was expected to reduce from six to about three per cent.
Br Kapoor said the other problem was access to finance, adding that 66 per cent of the population was unbanked.
Later after the meeting with the World Bank officials, President Banda held another meeting with European Union Health and Consumer Protection Commissioner Androulla Vassiliou.
President Banda said the government was looking at ways and means of increasing the productivity of the people. He said Zambeef was a very unique company.
He said the company would start growing palm oil by taking land, which was inhabitable.
President Banda said the palm oil would be for local consumption as well as for export purposes.
President Banda also revealed that government was talking to the Brazilians to establish pharmaceutical companies that would manufacture drugs to curb animal diseases.
Vassiliou said a lot of importance should be attached to agriculture, saying the country could become food-secure because it was in a good position and had good rainfall.
And later addressing the media at the World Bank offices in Lusaka after a week-long tour of the country's economic sites and holding of a series of meetings with government and various stakeholders, Ezekwesili challenged the government to quickly implement policy reforms because the people of Zambia want action.
Ezekwesili said the people of Zambia expressed a sense of urgency to see policies being turned into action.
"In my week-long tour of this country, I met many people including civil society, government officials, the private sector and the President and his Cabinet, but what came out strongly is that Zambians want action and are expressing this sense of urgency to see that government ideas and policies are implemented and I told the President and his Cabinet about the feelings of the people," Ezekwesili said. "It is true there are good policies in place but access to fertilisers without access to adequate finances and extension services is nothing to revamp agriculture. Also 97 per cent of rural people do not have access to energy and how can you grow the economy when the majority have no access to energy and even those who access it. The service is not reliable and efficient, actually reforms are needed in many sectors including, financial, telecommunications, tourism, among other sectors."
She expressed concern that civil society organisations and other voices of stakeholders were not heard by those in position of authority.
"In my interaction with the civil society, they said their voices are not heard and I conveyed this message to the President and his Cabinet. Since democratic institutions cannot be taken for granted, if the economy has to grow better, there is need to have diverse of opinions," said Ezekwesili.
Labels: DECENTRALIZATION, OBIAGELI EZEKWELISI, RUPIAH BANDA, World Bank
Read more...
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
Read more...
People need to change their attitude towards dealing with difficulty – Rupiah
Written by Patson Chilemba and Ernest Chanda
Sunday, April 05, 2009 7:51:43 PM
PRESIDENT Rupiah Banda yesterday said people need to change their attitude towards dealing with difficulty for transformation to be achieved. And World Bank vice-president African region Obiageli Ezekwesili said
agricultural productivity needs more than fertiliser to thrive.
During the official opening of the national indaba themed 'Mitigating the Effects of the Global Economic Crisis on the Zambian Economy', President Banda said it was not correct that when the country was faced with a challenge, people should quickly look around for a scapegoat.
"Rather, every responsible citizen must look towards contributing to the solution for the good of the country. It is time for us to inculcate in our society and in particular, in our youth a new culture that respects hard work, which respects education, which shows respect for others and that respects law and order," President Banda said.
"A lawless society with no culture can only lead to self-destruction, misery and poverty. So as we think about how to address the issues surrounding the economy, let us not forget that we as people have to change to succeed."
President Banda said he had noted that there was a tendency to look at investment and call it investment only if people were dealing in millions of dollars.
He said there should be a realisation that those millions of dollars came from small investments that had grown to become million-dollar investments.
He said the purpose of the gathering was to share experiences and ideas to better the life of the people, to raise broad-based growth by fully exploiting the vast resources available in the country and empowering the people.
President Banda said it was the expectation of all well-meaning Zambians that the indaba would identify immediate policy interventions and explore opportunities that the crisis presented.
He said the crisis had adversely affected the country's growth prospects, with the most impact being felt in the mining sector.
President Banda said a number of investors had been squeezed and many of the people had lost their jobs in the mines.
He said other industries such as tourism, manufacturing and agriculture had equally been affected.
President Banda said the crisis quickly translated in the depreciation of the kwacha as a result of a decline in foreign exchange inflows.
He said farmers witnessed increased prices of fertiliser, agro-chemicals and farm machinery.
President Banda said Zambia needed to face up to the realities associated with the downturn and take measures to minimise the negative impact on the economy and chart the way forward.
And Ezekwesili said there had to be renewed focus on agriculture.
She said with the abundant land and water resources, there was little doubt that Zambia could emerge as a bread basket for the region and beyond.
"Why has this potential not been utilised?" she asked.
Ezekwesili said despite massive increases in the expenditure of the Fertiliser Support Programme (FSP), agriculture productivity had not increased.
She said in fact during the past five years, the rate of growth of agriculture was less than one per cent per year and was actually negative during some of those years.
"I am not saying that fertiliser is not important. It is! But agriculture needs more than fertiliser to strive," Ezekwesili said.
She said it needed irrigation, research and extension, rural roads, clear and transparent trade policies that allowed farmers to sell their produce in the most profitable markets.
Ezekwesili said the government should put in place policies that encouraged private investment in agriculture.
She said the new agriculture marketing Act, now under preparation, was an important step in that direction.
Ezekwesili said the World Bank's 2008 Development Report highlighted that Gross Domestic Product (GDP) originating in agriculture was four times more effective in raising incomes of the extremely poor than GDP growth originating outside of the agriculture sector.
She further urged Zambia to take advantage of its location by thinking regionally and invest in roads and rail network to minimise transit time.
Ezekwesili said countries over the world had found that improving telecommunications was another effective way in which to reduce distances and telecommunication reform considered low hanging fruit, ready for the picking.
She said Zambia had unfortunately not been able to address the challenges it faces in the telecommunications sector and telecommunication costs were high while access was low.
Ezekwesili said despite the huge potential to tap into clean, renewable energy sector, including hydroelectric power, access to energy was still very low at just three per cent of the rural population.
She said no new investment in generation had taken place in Zambia in 30 years.
"Why? Only a third of electricity users are metered, resulting in losses of about 27 per cent of total output of Zesco. More than half of Zesco's operating expenses go to wages and salaries and it does not perform efficiently. Tariffs are not sufficient to cover the cost of new generation. There are significant problems with billing and collection and arrears are large," Ezekwesili said.
"All these issues will need to be addressed if Zambians want access to electricity. A 2007 study conducted by the Bank revealed that state-owned utilities in developing countries incurred losses of about $180 billion a year in the early 1990s due to inefficiencies in water, railroads, electricity and roads - this loss was nearly as much as the annual investment taking place in those sectors. At a time when resources are scarce, can Zambia afford inefficiency?"
Ezekwesili said the surest route to sustainable development and growth was investment in human capital. Ezekwesili said Zambia remained a very high cost business destination that limited its ability to be competitive. She said improving the business environment must therefore be high on Zambia's policy agenda.
Ezekwesili said this included licensing procedures; cost and time to export goods; lack of access to finance especially for female entrepreneurs; and stringent labour laws that encouraged casualisation.
Minister of Finance Dr Situmbeko Musokotwane said the government had instituted some measures in the 2009 budget for mining, which included the removal of the windfall taxes on copper incomes while retaining the variable income tax.
Dr Musokotane said customs duty on heavy oil fuels, a major fuel in the mining industry had been reduced from 30 per cent to 15 per cent and that value added tax (VAT) deferment on copper concentrate imports had been introduced.
However, Dr Musokotwane said the measures were too late for some mines that had already closed such as Luanshya Copper Mines (LCM).
Dr Musokotwane said the government intends to conclude the discussions as quickly as possible so that miners could get back to work.
He also said the reduced inflows of copper export proceeds and the repatriation of portfolio investment led to a quick depreciation of the kwacha amounting to over 60 per cent between July and end December 2008.
Dr Musokotwane said the Bank of Zambia (BoZ) took steps to moderate the rate of depreciation through strong market interventions in the context of allowing an orderly depreciation of the currency rather than preventing one.
Dr Musokotwane said Zambia had been particularly vulnerable to the current crisis because of high dependence on copper.
Dr Musokotwane also highlighted the government’s plans in the country’s agriculture, tourism and manufacturing sectors as provided for in the national budget.
Labels: FSP, GOVERNANCE, INFLATION, OBIAGELI EZEKWELISI, RUPIAH BANDA, SITUMBEKO MUSOKOTWANE, World Bank
Read more...
World Bank advises govt to refocus economy
Written by Florence Bupe
Sunday, February 08, 2009 8:05:56 PM
WORLD Bank Group vice president Obiageli Ezekwesili has advised Zambia to refocus its economy to other viable sectors for the country to effectively counter the impact of the global financial crisis.
Responding to questions during a teleconference on Tuesday, Ezekwesili said it was imperative for the country to invest in infrastructure development and build an economy based on other viable sectors than copper production.
“We are trying to renew our partnership with Zambia in various support areas, and we are trying to see ways of helping the country restructure its economic sector,” Ezekwesili said.
“For instance, what’s the strategy for a Zambia without copper?”
Ezekwesili on Monday met with President Rupiah Banda during the 12th Ordinary Session of the African Union in Addis Ababa, and disclosed that the two had discussions on Zambia’s democratic and economic status and strategy.
She emphasised that a country’s political status played a critical role in determining its economic standing.
Ezekwesili urged the government to partner with the mines in finding solutions to the challenges facing the mining industry.
“We have observed that government is focusing on the challenges facing the mining sector and is determined to find solutions to these problems. It is important that there is some form of partnership between the mines and government in seeking solutions to these challenges,” she said.
Ezekwesili said as part of its efforts to help developing countries’ economies counter the effects of the global economic recession, the World Bank had decided to increase lending to third world countries.
“As a bank, we have not been affected by the credit crunch, so we are not reducing our lending, instead we’re increasing our aid allocation,” Ezekwesili said. “This year, we are allocating US $42 billion to countries in the IDA (International Development Association).”
Zambia falls under the IDA category.
And Ezekwesili advised developing nations to revamp the private sector but cautioned governments against abandoning their regulatory role.
“There is need for developing economies to have a more functional private sector, but governments should not completely abandon their regulatory duties. Governments also need to redeem the public sector to enhance competence especially where you have public procurement systems,” said Ezekwesili.
Labels: ECONOMY, GREAT DEPRESSION II, OBIAGELI EZEKWELISI, World Bank
Read more...
