By Jane Chanda
Economist Lubinda Haabazoka says Zambia’s over-reliance on foreign aid is a major obstacle to achieving economic independence.
And Habazoka says the recent USAID aid suspension debacle was a wake-up call for Zambia to explore innovative financing mechanisms.
In an interview with Daily Revelation yesterday, Haabazoka said Zambia must diversify its economy by boosting the manufacturing sector and increasing exports, while developing homegrown financing solutions to reduce its dependence on foreign aid.
Haabazoka said he believed Zambia’s economic growth was hindered by its reliance on foreign aid, which created uncertainty and undermined the country’s ability to achieve its development goals.
“By exploring innovative financing mechanisms and investing in key sectors like mining, Zambia can build a strong and sustainable economy,” Haabazoka said.
Asked how Zambia could balance its need for foreign investment with its goal of achieving economic independence, Haabazoka said, “we need to be strategic in our partnerships and ensure that they align with our national development goals.”
He noted that Zambia and other African nations must reduce their dependency on foreign aid and work towards achieving their development goals through strategic investments, public-private partnerships and policies that foster economic independence.
“It’s time for Zambia to take control of its economic destiny and work towards achieving true economic independence,” Habazooka said, adding that developing local capacity and expertise was crucial to drive economic growth, emphasising that Zambia must prioritise domestic resource mobilisation, curb corruption and enforce stricter tax compliance, particularly in the lucrative mining sector, to achieve this goal.
