Zambian Government Set to Boost Public Services and Social Protection
In order to build on the administration’s early progress, the 2023 budget includes a swathe of fresh funding for public services, such as health and education, as well as social protection schemes for the most vulnerable members of Zambian society.
Last month, Vice President, Mutale Nalumango, pledged to establish maternity wards at health facilities across the country. In particular, he praised the establishment of a ward at Luangwa, a district where previously mothers would have to travel 25 kilometres to the nearest maternity ward. The pledge comes as part of the New Dawn government’s desire to rectify the disparities found between well-funded urban constituencies and historically marginalised rural areas.
Nalumango did, however, emphasise that public-private partnerships would be crucial to the improvement of Zambia’s health provision. Speaking in Luangwa, he praised the Walkington family and the Luangwa Child Agency for their donations to the new maternity ward he was visiting. By combining the public and the private sectors the New Dawn government cements the importance of private entities in the provision of healthcare ensuring effective and efficient care throughout the region.
In continuance of this goal, the recent budget has allocated K1.1 billion to finance the construction and completion of 36 district hospitals, 16 mini hospitals, and 83 health posts, in order to reduce the long distances travelled to access health professionals. In addition to allocating K4.6 billion for the procurement of drugs and medical supplies, the government has also committed to the recruitment of a further 2,000 healthcare workers, having already recruited 11,000 health workers.
This is not the only major recruitment drive pledged in the 2023 budget. A commitment has also been made to the recruitment of 4,500 further teachers, on top of the 30,000 already hired. Whilst infrastructurally the government has proposed the construction of 120 new high schools and 56 early childhood learning centres with the financial investment of the World Bank. Further, they seek to complete the 115 secondary schools that were abandoned midstream since 2010.
The combination of state education and health services represents an important partnership in Zambia’s investment in the future. In conjunction with the NGO Healthy Learners, the government has re-stated its pledge to roll out the School Health Nutrition Policy (SHNP). As part of its commitment to “educating our future”, the nutrition programme is based on research that strongly correlates early nutritional outcomes with healthy brain development, adult health outcomes and higher economic output.
With Zambia’s young population – over half the population are under the age of 18 – such investment in health and education is an investment in the nation’s future growth. Upskilling the population is a crucial goal the government is fostering through public-private partnerships such as those with Huawei to train 5,000 students and with the EU and UN to invest $6.5 million USD.
The budget allocates K133.5 million to support the Keeping Girls in School Programme. The programme is thus far credited with keeping 5,000 girls in school and comes as part of the president’s desire to modernise the role of women in society. According to the charity Action Aid, nine million girls of primary school age will never start school or set foot in a classroom across the globe. This compares to just three million boys. According to the Gender Division Permanent Secretary, Mainga Kabika; “Hichilema is focused on eradicating child marriages by the year 2030… Children who were being married off early can now go back to school.”
In order to protect the most vulnerable in Zambian society, and to achieve the goal of becoming a middle-income country, the budget includes significant social protection measures. Social Cash Transfer and Food Security Pack Programmes are to increase both the number of recipients and the transfer value. The Social Cash Transfer Programme is set to be increased by 19.8%. The Food Security Pack’s allocation has been increased by K.1.2 billion. This food security programme is designed to support the vulnerable but viable farmers that represent a crucial pillar of the Zambian economy.
50% of Zambia’s land is arable but at present only 20% is farmed. As Zambia’s young population grows up, properly, but responsibly, realising the potential of this land will be vital not just to food security but also to economic growth. As part of the African Continental Free Trade Area (AfCFTA) Zambian acts as the breadbasket of southern Africa. As such, Zambia’s neighbours across its land borders represent an estimated market of 320 million people.
Image via Twitter @HHichilema
Mining and Technical Exhibitions Expo Begins in Zambia
Foreign Brief, September 26, 2022
Zambia’s Mining and Technical Exhibition (MTE) begins today.
The MTE event takes place throughout Sub-Saharan Africa with the goal of introducing innovative technologies and developments in the mining sector to Zambia’s top mining companies like Konkola Copper Mines. Zambia is home to some of the world’s largest copper deposits and has smaller but exploitable cobalt, manganese and nickel deposits. Copper accounts for 60% of Zambia’s total exports. For years, investment has been hindered by inconsistent policies and unfavorable political conditions.
Image via First Quantum Minerals
First Quantum Minerals, a Canadian mining company, recently announced a $1.2-billion-dollar investment in Zambia’s Kansanshi copper mine, the largest such mine in Africa, indicating a trend towards more investment in Africa’s “Copper Belt” between Zambia and The Democratic Republic of Congo. With copper demand expected to grow as the renewable energy revolution continues and traditional producers, such as Chile and Peru facing greater political and regulatory uncertainty Zambia may come to the forefront as a viable source of copper.
Today’s exhibition where suppliers will showcase key products and innovative technologies that will be important for ramping up Zambia’s productive capacity by reducing costs to support major increases in output to support growing demand for copper cables and wires needed for electric vehicles, solar panels and other products for a global green economy transition.
Zambia’s Kwacha is the World’s Best Performing Currency Against the Dollar
Quartz Africa, September 4, 2022
Most African countries have been unable to tame rising inflation but Zambia has managed to reduce the inflation rate from 24.4% in Aug. 2021 to 9.7% in June.
Hi Quartz Africa readers,
When I was growing up, American action movies often featured one type of super-villain: A bulky, heavily-accented gruff Russian. At that age, I was not politically aware enough to understand why the hero had to be American and the villain Russian, and I never questioned it much.
As an adult now, I see how global geopolitics comes to play even in pop-culture. In every story, there has to be a hero, a savior of humanity, and the villain has to be someone who threatens these global ideals of democracy, peace and order. It’s even worse if the villain is trying to usurp the hero by almost landing the first man on the moon or having access to even more nuclear weapons.
This past week, the last leader of the Soviet Union Mikhail Gorbachev, died. As an African, the USSR’s legacy on the continent and the fall of the Soviet Union is complicated, as it brought both advantages and disadvantages. The steps Gorbachev took in dismantling the Soviet Union laid seeds for independence in certain parts of southern Africa, including eventually leading to the end of apartheid in South Africa.
John Wessels/AFP Via Getty Images
Since the fall of the Soviet Union, new narratives have emerged in Hollywood and elsewhere. One superpower is pitted against the other, with Africans expected to pick good from evil. But expecting a clear cut division between good and evil is a fallacy and a failure to understand history and the intricacies at play in every village, town, country and region. One person’s hero is another’s villain—Gorbachev too was more revered abroad than at home.
Your hero might be behind the assassination of DRC’s Patrice Lumumba, one of Africa’s greatest post-colonial heroes. Your hero might have destabilized Mali, laying the seeds for insurgency in the Sahel. Your heroes might have illegally over-fished with giant ships leading to the rise of piracy in the horn of Africa.
African governments’ apparent hesitancy to pick sides on certain geopolitical issues is all the proof needed that things are not always so black and white. Sometimes, it’s complicated. This pseudo-neutrality should be seen as a sign of wisdom from those who know that yesterday’s foes might be tomorrow’s friends. —Ciku Kimeria, Africa editor.
Featured Image: Lukasz Radziejewski Via Unsplash
IMF Approves USD 1.3 Billion Extended Credit Facility for Zambia
Zambia Invest, September 1, 2022
The Executive Board of the International Monetary Fund (IMF) just approved a 38-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to SDR 978.2 million (around US$1.3 billion, or 100% of quota).
The program is based on the authorities’ homegrown economic reform plan that aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.
The IMF explains that Zambia is dealing with the legacy of years of economic mismanagement, with an especially inefficient public investment drive.
Growth has been too low to reduce rates of poverty, inequality, and malnutrition which are amongst the highest in the world.
Zambia is in debt distress and needs a deep and comprehensive debt treatment to place public debt on a sustainable path.
The ECF-supported program will help reestablish sustainability through fiscal adjustment and debt restructuring, create fiscal space for social spending to cushion the burden of adjustment, and strengthen economic governance, including by improving public financial management.
The program will also catalyze much-needed financial support from development partners.
IMF Governors Meeting in 2019, Image via Flickr
The Executive Board’s decision will enable an immediate disbursement equivalent to SDR 139.88 million (about USD 185 million).
Following the Executive Board discussion on Zambia, Ms. Kristalina Georgieva, IMF’s Managing Director, issued the following statement: “Zambia continues to face profound challenges reflected in high poverty levels and low growth. The ECF-supported program aims to restore macroeconomic stability and foster higher, more resilient, and more inclusive growth.”
“Restoring fiscal sustainability will require a sustained fiscal adjustment. The authorities’ adjustment plans appropriately focus on eliminating regressive fuel subsidies, enhancing the efficiency of the agricultural subsidy program, and reducing inefficient public investment. Domestic revenue mobilization also needs to support the medium-term adjustment. The adjustment creates fiscal space for increased social spending to cushion the burden on the most vulnerable, help reduce poverty, and invest in Zambia’s people. The ongoing expansion of the authorities’ Social Cash Transfer program and their plans to increase public spending on health and education are particularly welcome. Together with the fiscal adjustment, Zambia needs a deep and comprehensive debt treatment under the G20 Common Framework to restore debt sustainability.”
“A substantial strengthening of fiscal controls is needed to support the fiscal adjustment, as well as address governance and corruption vulnerabilities. Public investment management and procurement practices need to be strengthened to ensure transparency and the efficient use of scarce resources. It will also be important to bolster the framework for monitoring fiscal risks, particularly those related to large state-owned enterprises.”
“The Bank of Zambia should continue its efforts to reduce inflation and preserve financial stability. International reserves should be replenished as conditions allow and the exchange rate should continue to reflect market conditions. Addressing high NPL levels and ensuring adequate capital buffers will also be important.”
For this part, Zambia’s President Hakainde Hichilema wrote on his Twitter account: “We are delighted that the IMF shares our vision for a prosperous Zambia, with strong socio-economic growth at the heart of our development plans. Thanks to the people of Zambia for believing in us. There is still much more to be done.”
Zambia’s Inflation Down to 9.8% in August 2022
Zambia Invest, September 1, 2023
Zambia’s Annual inflation for August 2022 decreased to 9.8% from 9.9% recorded in July 2022. This means that on average, prices of goods and services increased by 9.8% between August 2021 and August 2022.
Annual Food and Non-Food Inflation
Annual food inflation for August 2022 was recorded at 11.3% from 12.0% in July 2022.
This development was mainly attributed to price movements in food items such as meats (brisket, mixed cut, t-bone, beef sausages, mince meat, ox-liver, chicken live); fruits (oranges, lemons, bananas, apples, watermelons, pineapples, avocadoes), rice local and eggs.
The annual non-food inflation for August 2022 was recorded at 7.8% from 7.2% in July 2022. This outturn was mainly on account of price movements in non-food items due to the base effect in Transport.
Annual Inflation Rate by CPI Main Groups
The Annual Inflation Rate in August 2022 increased for:
Transport: the CPI for the Transport main group increased by 13.6% between August 2021 and August 2022. This was higher than the 7.3% in the same month of 2021 and 4.3% recorded in July 2022.
Communication: the CPI for the Communication main group increased by 2.1% between August 2021 and August 2022. This was lower than 3.8% in the same month of 2021 but above 1.9% recorded in July 2022.
The Annual Rate of Inflation for August 2022 decreased for:
Food and Non-alcoholic Beverages: the index for the Food and Non-alcoholic beverages main group increased by 11.3% between August 2021 and August 2022. This was lower than 31.6% in the same month of 2021 as well as the 12.0% recorded in July 2022.
Alcoholic Beverages and Tobacco: the index for the Alcoholic Beverages and Tobacco main group increased by 7.0% between August 2021 and August 2022. This was lower than the 13.3% in the same month of 2021 and 8.1% recorded in July 2022.
Clothing and Footwear: the CPI for Clothing and Footwear increased by 9.1% between August 2021 and August. This was lower than 16.1% in the same month of 2021 and 11.5% recorded in July 2022.
Housing, Water, Electricity, Gas, & Other Fuels: the CPI for the Housing, Water, Electricity, Gas & Other Fuels group increased by 5.4% between August 2021 and August 2022. This was lower than the 22.7% recorded in the same month of 2021 as well as 6.2% recorded in July 2022.
Furnishing, Household Equipment and Household Maintenance: the CPI for the Furnishing, Household Equipment and Household Maintenance main group increased by 6.0% between August 2021 and August 2022. This was lower than 21.2% recorded in the same month of 2021 and below 7.1% recorded in July 2022.
Health: the index for the Health main group increased by 4.8% between August 2021 and August. This was lower than 12.3% in the same month of 2021 as well as 5.1% recorded in July 2022.
Recreation and Culture: the CPI for the Recreation and Culture main group increased by 12.3% between August 2021 and August 2022. This was lower than the 15.9% in the same month of 2021 and 13.7% recorded in July 2022.
Restaurant & Hotel: the index for the Restaurant & Hotel main group increased by 6.8% between August 2021 and August 2022. This was lower than the 14.1% in the same month of 2021 as well as the 8.0% recorded in July 2022.
Miscellaneous Goods and Services: the CPI for the Miscellaneous Goods and Services main group increased by 8.8% between August 2021 and August 2022. This was lower than 15.4% in the same month of 2021 and below the 9.9% recorded in July 2022.
The Annual Rate of Inflation for July 2022 remained the same for:
Education: the CPI for the Education main group increased by 2.3% between August 2021 and August. This was lower than 5.6% in the same month of 2021 and the same as that recorded in July 2022.
Contribution of CPI Main Groups to Overall Inflation Rate of 9.8%
Of the overall 9.8% annual inflation, Food and Non-alcoholic beverages group contributed 6.4% points, while Non-food items accounted for 3.4% points.
Of the 3.4% points, Transport contributed the highest at 0.9% points, followed by Clothing and footwear& Housing, water, electricity, gas and other fuels at 0.7% points each; Furnishing Household Clothing and footwear equipment and routine household maintenance groups contributed 0.4% points. The rest of the Non-Food group accounted for the remaining 0.7% points.
August 2022 Overall Monthly Inflation
Overall monthly inflation for August 2022 was recorded at 0.3% compared with 0.4% the previous month. This outturn was mainly attributed to price decreases in some non-food items. Monthly food inflation for August 2022 was 0.4%, an increase of 0.1% points from 0.3% in July 2022. This development was mainly attributed to the general decrease in prices of items such as Vegetables (Rape, .Sweet potato leaves, lumanda, Cabbage, Tomatoes), Dried bream. Monthly non-food inflation for August 2022 was recorded at 0.1% from 0.7% in July 2022. This outturn was mainly attributed to a slow down in price increases of non-food items such as Fuels & lubricants (Diesel, Petrol, Engine oil) and; Passenger transport by road (Minibus fare, Coach fare).
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Tanzania and Zambia Agree to Upgrade Tazara Railway
Connection between the two countries will be rebuilt to standard gauge to further economic development.
Photo Credit: Richard Stupart/Wikipedia Commons
TANZANIA and Zambia have agreed to upgrade the Tazara railway that connects the two countries as part of measures to improve bilateral ties.
The 1160km cross-border railway linking Kapiri-Mposhi in Zambia with the port of Dar es Salaam in Tanzania will now be upgraded to standard gauge through a partnership with the private sector and development partners.
Tanzania’s president, Ms Samia Suluhu Hassan, says the 1067mm gauge, single-track Tazara line does not deliver what is expected of it and an upgrade is needed to open up new business opportunities along the route.
“In today’s world, railway is standard gauge,” says Hassan. “So through a Public-Private Partnership (PPP) we have agreed to come up with a project to improve the Tazara railway to that level.”
Tanzania is also constructing a 1219km standard-gauge line from Dar es Salaam to the city of Mwanza on the southern shores of Lake Victoria.
Known as the Tanzania Standard Gauge Railway, the system is being designed to link Tanzania with Rwanda and Uganda, and continuing to Burundi and the Democratic Republic of Congo. The work is included in the East African Railway Master Plan aimed at rejuvenating the region’s railways and increasing efficiency and speed while lowering transport of freight costs and furthering economic development. The railway will use electric power and transport of goods to Uganda from Mwanza will be by lake ferries.
As of April 2022, the 300km Phase 1 from Dar es Salaam to Morogoro had been completed while work on the 426km Phase 2 Morogoro – Makutopora, 294km Phase 3 Lot 1 Makutupora – Tabora, and 341km Phase 5 Isaka - Mwanza sections was in progress. Phase 5 is being built by China Civil Engineering Construction (CCEC) and China Railway Construction Company (CRCC).
In July 2022 Tanzania Railway Corporation (TRC) signed a $US 900.1m contract with Yapi Merkezi for the construction of the 130km Phase 3 Lot 2 Tabora – Isaka section, along with its 35km of branches, the same company having previously won a $US 1.9bn contract for Phase 3 Lot 1.
TRC has also signed a contract with Korean national operator Korail to provide training In rail construction and operations following the line’s opening.
The first locomotives being used for testing of the electrified Phase 1 of the Tanzania SGR are former class 1014 locomotives purchased from Austrian Federal Railways (ÖBB).
Image: Marissa Beletti via Unsplash
Zambia, India Ink Deal For Medical Facility
ZNBC, July 20, 2022
Zanis-Zambia has clinched a deal with the Indian government for the establishment of a state of art medical facility.
The medical facility to be set up in Zambia is aimed at providing quality health care to the people who often seek specialised medical treatment abroad.
Vice President MUTALE NALUMANGO and Apollo Hospital management made the Agreement after engaging in discussions of mutual interest in New Delhi, India.
Mrs. NALUMANGO said government is prioritizing health, due to its importance to the attainment of the country’s development goals.
She noted that many patients from across the world including Zambia have benefited from the services of Apollo Hospitals.
The Vice President said the establishment of Apollo Hospital in Zambia will bring quality specialized health care services closer to the many citizens.
Mrs. NALUMANGO pointed out that due to Zambia’s unique location in the region, patients from neighbouring countries will immensely benefit from the health care services.
And Apollo Hospital Vice President for Corporate Development HARINDER SIDHU noted that his team remains committed to provide appropriate quality health care services in order to help people access improved health care services.
Dr. SIDHU said his hospital is determined to continue collaborating with countries like Zambia in the provision of health care services.
And Director of Medical Services SHANTI SAUSAL added that the hospital has a team of highly trained staff that have performed groundbreaking surgeries and helped save lives of many patients.
The Vice President later toured the medical facility’s outpatient and inpatient departments along with the high tech diagnostic equipment.
During the tour, Mrs. NALUMANGO visited and checked upon Zambians at the hospital seeking various medical care and other services.
Apollo Hospital in India has 74 hospitals under its brand with over 4,500 pharmacies, a wide range of medical schools, nursing care establishments and offers basic medical care to complex problems.
USAID Commits $60 Million Towards Addressing Zambia’s Economic Challenges
Lusaka Times, June 30, 2022
The United States government has committed to contribute over 60 million United Stated dollars to Zambia to help address some of the economic challenges the country is facing.
USAID Administrator, Samantha Power said 9 million United States Dollars will go towards addressing the immediate effects of high fuel prices and food insecurity in the country.
Ms Power noted that the 30 million United States Dollars will go towards boosting trade and investment in the country to attract foreign markets and the other 20 million United States Dollars will go towards Small and Medium Enterprise (SMEs).
She added that the other 4 million United States Dollars will go towards addressing some of the legal reforms arising from integrity and corruption among other things.
The Administrator announced this investment yesterday when she paid a courtesy call on President Hakainde Hichilema at State House yesterday.
Ms Power added that the US government is committed to supporting Zambia’s democratic advances by addressing issues of economic humanitarian and geopolitical issues.
She however commended government for the excellent reform agenda of the country adding that the US government will continue to support Zambia so that the country can be reformed to become a better country.
Ms Power said 10 months ago, Zambia was filled with things to deal with corruption and high inflation rates adding that the world can see the commitment that the new government is doing to change the picture.
And President Hakainde Hichilema has thanked the United States government for the unwavering support that they have continued to give Zambia.
Mr Hichilema noted that the United States government has supported Zambia in almost all the sectors of the economy starting from education, health and water reticulation among others.
He said the funds that the US government has committed to give Zambia will go a long way in addresses some economic challenges.
The Head of State noted that the funds will help balance the economy and in turn market Zambia internationally.
Zambia’s Implementation of Economic Program is Impressive, IMF Says
Zambia Invest, June 20, 2022
Ms. Antoinette M. Sayeh, Deputy Managing Director of the International Monetary Fund (IMF), recently visit Zambia and issued a statement at its conclusion in which she praises the authorities’ efforts in restoring macroeconomic stability.
In her statement, she thanked Zambia’s President Hichilema, the Minister of Finance and National Planning Musokotwane, and other senior officials for their hospitality, and civil society organizations, parliamentarians, and the donor community for their engagement.
“I was happy to have the opportunity to hear about recent economic developments, including the impact of rising global commodity prices, and their implications for the economic outlook. I welcomed the sustained commitment of the authorities to the reform plans outlined in the context of the December 2021 staff-level agreement on an IMF-supported program. Zambia’s implementation to date of its homegrown economic program is impressive. This is a robust program that can achieve the authorities’ goals of restoring macroeconomic stability and laying the foundations for more resilient and inclusive growth,” she noted.
She also praised the authorities’ focus on greater investment in education and health and was pleased to hear that the execution of this spending is on track.
The statement concludes: “We (the IMF) are encouraged by the news that the official creditor committee will meet today to begin deliberations on Zambia’s request for a debt treatment under the G20 Common Framework. We urge creditors to provide financing assurances as soon as possible, as they are needed before staff can put forward Zambia’s program for consideration by the IMF Executive Board. This will allow Zambia to access Fund resources, and also unlock access to critical financing from other partners, to help boost its economic recovery.”
Read more at: https://www.zambiainvest.com/economy/implementation-of-economic-program-impressive-imf/ and follow us on www.twitter.com/zambia_invest
Zambia Investment Agency Signs MoU with Kenya Investment Authority
Zambia Invest, June 22, 2022
On 21st June 202, the Zambia Development Agency (ZDA) and the Kenya Investment Authority (KenInvest) signed a five-year Memorandum of Understanding (MoU) aimed at enhancing the cooperation of the two institutions in investment promotion and exchange of investment-related information.
The MoD wth signed in Nairobi by ZDA Acting Director-General Albert Halwampa and by KenInvest Managing Director Olivia Rachier.
Through the MoU the two institutions have established a practical framework for the development of stronger business relations and strengthening of institutional relations and capacity building through mutual cooperation.
The objectives of the MoU include leveraging on parties resources in promoting Foreign Direct Investments (FDIs) consistent with the underlying institutional mandate and legal framework of the two institutions.
In addition, the two institutions hope to jointly execute activities that will enhance the investment relations between Zambia and Kenya, and strengthen and maintain technical cooperation in areas identified in the agreement.
The identified areas of collaboration include investment promotion and business facilitation, information exchange, collaboration and exchange programs, organization of events and aftercare facilitation.
In the area of investment promotion, the two parties agreed to facilitate and aid investors from the country of one party desiring to invest in the country of the other party.
Further, the parties will focus on both outward and inward foreign direct investment between both countries while collaborating and assisting each other in establishing, developing and packaging investment projects in both jurisdictions.
In terms of collaboration and exchange programs, the two institutions will encourage and support the exchange of technical expertise, knowledge, and training opportunities in investment promotion, investment facilitation, investor aftercare, and policy advocacy.
The two parties will also promote the transfer of technology between the two countries in priority sectors of their economies and encourage linkages and partnerships between Small and Medium Enterprises (SMEs) from both countries. Meanwhile, in the area of organization or business missions, the two parties will organize delegations related to investment in the country of either party and participate in exhibitions, meetings and conferences organized by either party.
Zambia GDP to Grow 3.1% and 3.6% in 2022 and 2023, IMF Projects
Zambia Invest, June 20, 2022
The International Monetary Fund (IMF) has recently released its World Economic Outlook Report (WEO) 2022, projecting a Gross Domestic Product (GDP) growth of +3.1% and +3.6% for Zambia in 2022 and 2023.
Global Economic Growth in 2022 and 2023
Global economic prospects have worsened significantly since the IMF’s last World Economic Outlook forecast in January 2022, the report explains.
At the time, the IMF had projected the global recovery to strengthen from the second quarter of 2022 after a short-lived impact of the Omicron variant.
Since then, the outlook has deteriorated largely because of Russia’s invasion of Ukraine—causing a tragic humanitarian crisis in Eastern Europe—and the sanctions aimed at pressuring Russia to end hostilities.
This crisis unfolds while the global economy was on a mending path but had not yet fully recovered from the COVID-19 pandemic, with a significant divergence between the economic recoveries of advanced economies and emerging markets and developing ones.
In addition to the war, frequent and wider-ranging lockdowns in China—including in key manufacturing hubs—have also slowed activity there and could cause new bottlenecks in global supply chains.
Higher, broader, and more persistent price pressures also led to a tightening of monetary policy in many countries.
Overall risks to economic prospects have risen sharply and policy trade-offs have become ever more challenging.
Beyond the immediate humanitarian impacts, the war will severely set back the global recovery, slowing growth and increasing inflation even further.
The report projects global growth at 3.6% in 2022 and 2023 from an estimated 6.1% in 2021.
The downgrade largely reflects the war’s direct impacts on Russia and Ukraine and global spillovers.
Beyond 2023, global growth is forecast to decline to about 3.3% over the medium term.
Because Russia is a major supplier of oil, gas, and metals, and, together with Ukraine, of wheat and corn, the current and anticipated decline in the supply of these commodities has already driven their prices up sharply.
Europe, Caucasus and Central Asia, Middle East and North Africa, and sub-Saharan Africa are most affected. The food and fuel price increases will hurt lower-income households globally.
Moreover, many countries have limited fiscal policy space to cushion the impact of the war on their economies.
In this difficult and uncertain environment, effective national-level policies and multilateral efforts have an ever more important role in shaping economic outcomes. Central banks will need to adjust their monetary stances even more aggressively should medium- or long-term inflation expectations start drifting from central bank targets or core inflation remains persistently elevated.
EU-Zambia Forum Great Initiative
Zambia Daily Mail, May 19, 2022
Indeed there is no grain of doubt that Zambia is back on an impressive economic growth trajectory. From launching the Public Private Dialogue Forum (PPDF) three weeks ago, to addressing the Investing in African Mining Indaba in South Africa just over a week ago, President Hakainde Hichilema yesterday graced the European Union (EU)-Zambia Economic Forum.
While his attendance of the mining indaba triggered interest among conglomerates like First Quantum Minerals to invest US$1.4 billion in Kansanshi Mine, the PPDF and EU-Zambia Economic Forum will generate private sector investments and business opportunities that foster economic growth and job creation. These are significant milestones in the new dawn government’s efforts in resuscitating an economy which has been beleaguered over many years of maladministration. The EU-Zambia Economic Forum is the first of its kind launched on April 5 this year by Minister of Commerce, Trade and Industry Chipoka Mulenga under the theme ‘Economic transformation through green growth’.
Image: Christian Lue via Unsplash
Yesterday, this high-level event brought together entrepreneurs, experts, financial institutions, innovators, and policy decision-makers from Zambia, the EU and representatives of its 27 member states. It has created a rare platform for EU and Zambian business people to work together and create economic synergies to promote employment and wealth creation. We therefore urge Zambian business leaders to take advantage of the opportunity created by this economic forum to collaborate with their European counterparts in exploring new avenues of making their enterprises buoyant and grow. The foreign investments President Hichilema is attracting into Zambia should not be misconstrued in any possible way just because some of the investors are from the West. We do not agree with such a misplaced perception because the focus of the head of State is to attract investors from strong economies such as those in Europe. Pessimists should therefore not divert Zambians’ attention to petty talk because citizens are interested in seeing an economic turnaround of the country. About a fortnight ago, President Hichilema met new Chinese Ambassador to Zambia Du Xiaohui at State House where he stressed the need for continued close ties of interest and fruitful cooperation in economic affairs, culture and security between Zambia and China. So, rather than dwelling on destructive talk, doomsayers should give Mr Hichilema chance to continue focusing on driving his government’s economic diplomacy agenda, which is pivotal in job creation, attracting investments, and improving people’s welfare. By spearheading the EU-Zambia Economic Forum, the President is aware of the immense benefits Zambia will derive from this initiative because Europe has some of the strongest businesses in the world. Like he correctly pointed out, the €1.6 billion current EU investments in Zambia are inadequate, and through the economic forum, European companies’ level of investment will certainly rise. “Honestly speaking, €1.6 billion, Europe is a giant, I am not convinced that €1.6 billion is something to be proud of. We should work to triple this figure to at least €5 billion,” President Hichilema said. The EU-Zambia Economic Forum alongside the PPDF will be institutionalising private sector investment locally and internationally because both forums are anchored on fostering private sector participation in economic affairs of Zambia. That is why we applaud every effort President Hichilema and his government are making in attracting investments into Zambia because that is the surest avenue to transforming the country’s ailing economy.
Government to launch Public-Private Dialogue Forum
Lusaka Times, April 26, 2022
The government will officially launch the Public-Private Dialogue (PPD) Forum tomorrow.
The dialogue aims at strengthening private sector engagement in Zambia’s economic development agenda and facilitate collaboration among relevant stakeholders to address critical sector specific constraints.
Acting Secretary to Cabinet, Patrick Kangwa says government recognises that private sector is the engine of economic growth and the best tool for job creation.
Mr. Kangwa said it is therefore crucial to understand better how government can effectively work together with the private sector to reach the country’s full potential.
He explained that the forum will be used as an opportunity to identify the market failure and develop strategies to address them.
Mr. Kangwa further added that the event is expected to bring together key stakeholders from the public and private sector and cooperating partners to engage in discussion in order to support enablers for sustainable growth in sectors that will yield developmental dividends for the country.
The dialogue will be held under the theme “Fostering Private Sector Growth and Economic Development.
Yesterday, during the press conference, President Hichilema said government considers the private sector as an engine for economic development, this is why government wants to hold the Public-Private Dialogue Forum for Development aimed at unlocking all challenges that impede the growth of the sector.
This is according to a statement availed to the media in Lusaka today, by Acting Secretary to Cabinet, Patrick Kangwa.
Landmark €6.5m Youth Skills Deal
Zambia Daily Mail, May 23, 2022
THAT the European Union (EU) and United Nations (UN) have signed a €6.5 million youth skills development contract for Zambia is good news indeed. These are some of the fruits of last week’s EU-Zambia Economic Forum, for which some naysayers in their typical unconstructive talk accused President Hakainde Hichilema of being pro-West investment. The forum was attended by representatives of 27 EU member countries, African Union Commission, and Bankers Association of Zambia, among others. This historic signing of the €6.5 million contract for skills development among Zambian youths could not have come at a better time than now when there are so many young university and college graduates still looking for employment.
Barely four days after the forum, President Hichilema announced in a message posted on his Facebook page that the €6.5 million contract is for supporting skills development among Zambian youths. With this development, the President is right when he says our young people should take advantage of this opportunity to contribute to Zambia’s development trajectory.
President Hichilema at the EU meeting
“When opportunity knocks, our youth have to be ready. We are happy to inform the nation that the European Union and United Nations have signed a contract for €6.5 million for skills development for increased employability programme in Zambia,” Mr Hichilema said. This is aimed at enabling the country’s institutions to train youths in various skills so that they could create employment for themselves and other Zambians. The new dawn administration has always been talking about creating jobs for youths, especially that they form the major segment of the country’s voting population. Inasmuch as this administration has placed job creation top of its agenda, young people should always bear in mind that Government is only there to create a conducive environment for investment in various sectors. It is through investments such as the EU and UN one that jobs are created, mainly by the private sector, of course in collaboration with Government. We therefore urge the youth to take advantage of the €6.5 million skills development contract to enrol in various institutions that will be responsible for skills training under this project. With the EU and UN financed contract, the focus for Zambian youths should not just be on white-collar jobs, but also to delve into various entrepreneurial endeavours to create their own job opportunities.
For any country to develop, it requires home-grown economic growth through engagement in a variety of small and medium businesses by citizens themselves. That is why we urge all well-meaning citizens to support every effort the new dawn government is making to promote investment from within and beyond the borders of Zambia. This is because the just-ended EU-Zambia Economic Forum is already bearing fruit, and hopefully more investments will unfold soon. The €6.5 million skills development contract for Zambian youths is just the beginning of better things to come under the current administration because its leaders do not just talk, but they also walk the talk. Therefore, it is entirely up to youths to get empowered with life skills for them to employ themselves and create jobs for others. We applaud the move by EU and UN to sign the €6.5 million skills development contract for our young people. This is how it should be.
Image: Christian Lue via Unsplash
UK BII To Scale Up Investment In Zambia For Sustainable Development
Zambia Invest, April 22, 2022
On 5th April 2022, the UK’s Minister for Africa, Vicky Ford, and UK’s development finance institution CEO Nick O’Donohoe celebrated in Lusaka the launch of the institution’s new name, British International Investment (BII), formerly the CDC Group.
The event, which was attended by Ministers and business leaders, marked the first official launch of the BII brand in Africa, demonstrating the UK’s commitment to working with the Government of Zambia on productive, sustainable, and inclusive growth.
After 74-year of history across Africa and a track record of investing to support private-sector growth and accelerate impact, BII will scale its commitment to Africa and set new ambitions to usher in a new wave of investment in clean and green infrastructure and digital transformation.
BII investment already supports over 6,000 jobs across 20 companies within a range of sectors, and its recent allocation of a USD 20 million trade finance facility to five banks in Zambia, provides fresh capital that helps keep trade flowing through the economy.
Then Foreign Secretary Lizz Truss Talking at a BII Event in 2021
BII will continue to make investments that bolster financial institutions and businesses, create jobs, and boost trade in Zambia.
Moreover, the strategy to scale climate finance in Africa will help deliver on the Green Growth Compac, a framework signed by the UK and the Government of Zambia outlining their joint objective to build a stronger, more diversified, and inclusive Zambian economy.
Commenting on the launch, Nick O’Donohoe, CEO of BII, said: “I am pleased to be here with Minister Ford in Zambia, a country with whom BII has such a strong shared history. From our first investment in Zambia over 70 years ago, we have targeted a broad range of sectors where we saw opportunities to respond to the country’s growth needs and help mobilize greater investments to transform the economy. As we step into our new strategy under a new name, as a British institution at the heart of the UK Government’s international financing offering, we remain committed to scaling investment that will address the most pressing development needs across Africa. In Zambia, we will direct our capital toward supporting industries that will ensure Zambia’s green development pathway and help build economic prosperity for future generations.”
For her part, Minister for Africa Vicky Ford, MP said: “Launching the new British International Investment (BII) here in Zambia is a key moment for the UK financing of private sector growth and infrastructure across Africa. We are committed to support countries grow their own economies, bolster private sector investment and trade, and deliver the returns that will support wider socio-economic development.”
She also announced that GBP 4m of UK aid funding is being invested through InfraCoAfrica into projects in Zambia that will help boost electricity access for families and businesses.