By Jane Chanda
Finance and National Planning minister Dr Situmbeko Musokotwane says Zambia’s economic transformation is crucial for building resilience to climate change and capitalising on the opportunity presented by the country’s managed debt.
Speaking at the Zambia Economics Summit in Chongwe at Ciela Resort yesterday, Musokotwane emphasised that economic transformation was no longer a choice, but a necessity for Zambia.
He highlighted the importance of increasing copper production to meet the 3 million-ton target, addressing stagnation due to high taxation and diversifying the economy to boost export revenue.
“The time for mere rhetoric is over, it’s time for action. We must transform our economy to survive and thrive in the face of climate change,” Musokotwane said.
He acknowledged the significant impact of drought on the economy, affecting demand, and announced plans to support affected farmers through the Farmer Input Support Program (FISP) program and encourage financial institutions to lend to promising farmers.
“We cannot afford to let our farmers suffer, they are the backbone of our economy,” he said.
Dr Musokotwane also stressed on the need for private sector investments in the energy sector, particularly in alternative energy projects such as solar, and announced government incentives and loans to support these initiatives.
“The future of our energy sector lies in renewable energy, we must invest in it,” Musokotwane added.
The minister stressed the importance of foreign direct Investment, particularly export-oriented, for economic transformation and increasing export revenue.
“We need FDI to bring in new technologies, new markets and new opportunities for our economy,” he said.
He also highlighted the restricted borrowing approach, subject to parliamentary approval, and the focus on Public-Private Partnerships (PPPs) to alleviate the financial burden.
“We must be responsible in our borrowing, and work with the private sector to achieve our goals,” said Musokotwane.
