Zambia needs a new economic order - The Golden Party

The Golden Party says Zambia needs a new economic order to respond and adapt to the new normal beyond short term economic stimulus packages recently prescribed.

Party President Jackson Silavwe says many countries in Africa, Zambia inclusive are experiencing economic shocks despite having recorded fewer clinical cases of Corona virus also known as Covid-19. 

He said Zambia has registered multiple job losses, depreciation of kwacha against major convertibles such as the USD there by making businesses and the general cost of living a nightmare. Poverty levels have equally rocketed. 

Mr Silavee said the assessments by the World Bank and the International Monetary Fund show that the global economy has slowed down in growth in the year 2020 compared to the year 2019. 

He said Global trade has slowed down as a result of the closure of borders and the lockdowns in major economies like the European Union (EU), China and the United States of America (USA).

“According to the Economic Commission for Africa(ECA), Corona virus blow to economic growth expected to drop from 3.2% to 1.8%. The secretary for ECA Miss Vera Songwe, further stated that the continents interconnectedness to affected economies of the EU, China and USA was causing ripple effects”, he added.

Mr Silavwe says the Zambian economy was projected to grow at 3.2%, it has now been revised be lower at around 2% as a direct consequence of the challenges facing the economy, chiefly due to the effects of the corona virus. 

“Our major economic backbones such as the tourism and mining sector(s) have partially closed down. Hotels and lodges have recorded significant reduction in book rates. From 50% to less than 20% for the same period last year resulting in more job losses”, added Mr Silavwe.

He said Mining is one of the major contributo to the Zambian economy and a hub for employment for the Zambian youth. 

Mr Silavwe said unemployment is already a major concern in zambia with both the private and public sectors hardly produces adquate jobs to cover the majority population especially new graduates.

He has called on the government of Zambia to initiate a solid long term economic plan in the COVID ERA beyond the recently announced short interventions.

Mr Silavwe said Zambia needs a grand economic RESET urgently to curb the adverse economic effects on our people. 

“Further, we call upon the Economic Association of Zambia( EAZ) to hold an economic indaba that would look into the economy of Zambia critically during the Covid-19 economics. An economic Indaba held in good faith can provide solutions for a more resilient local economy for a prosperous Zambia”, he said.

This article originally appeared on Lusaka Times