An Economist says Zambia’s economy is on the right trajectory but stresses the need for the benefits to trickle down to ordinary citizens.
Twaambo Hamusute told Money News in an interview that Zambia’s economy has gone through various transformations under different regimes since independence.
Mr. Hamusute explained that the country’s economic situation worsened when the government defaulted on its debt in 2020, which led to a rise in inflation and depreciation of the Kwacha.
“The impact of defaulting debt is severe because foreign direct investment (FDI) inflows decline,” Mr. Hamusuted said.
He noted that FDI significantly reduced around 2016 to 2020 when Zambia accumulated a lot of debt.
Mr. Hamusute stressed that such conditions make it difficult for the economy to grow and thrive.
He however, expressed optimism that the current economic trajectory is positive, attributing it to policies implemented by the government in key sectors such as mining, energy, and agriculture.
“The economy is on the right trajectory due to the policies that the current government has implemented in various sectors such as mining, energy, and agriculture,” he added.
Mr. Hamusute further said initiatives such as the Local Content Statutory Instrument (SI) have created opportunities for Zambians to actively participate in economic growth.
“Policies like the Local Content SI are important because they allow Zambians to fully participate in driving the country’s economy further,” Mr. Hamusute observed.
He further pointed out that the ongoing debt restructuring process has also contributed to the country’s improved economic performance, emphasizing the importance of ensuring that the gains from these economic improvements are inclusive.
“While the economy is performing well, government must ensure that the benefits are felt by ordinary citizens,” he added.
