Mwape Mulubwa, AfricaNews Reporter in Lusaka, Zambia
From a backlog of underdevelopment, especially in sub Saharan Africa, Zambia has called for long term investments if the African continent is to sustain its economic growth.
The Southern African country, which itself is listed as the list developed country (LDC) by the International Monetary Fund (IMF) and World Bank , alike, has for over three decades now gone through challenging social- economic situations.
Among these include high unemployment levels as most if not all government parastastals among them being the Zambia Consolidated copper mines (ZCCM ) and the Zambia Engineering Cooperating Company (ZECCO) , among others were all privatized under the Liberalization policy of former President Dr. Frederick Chiluba’s Movement for Multi Party Democracy (MMD ) regime.
This liberalization policy resulted in high unemployment, and other social-economic difficulties such as high illiteracy and high mortality rate among Zambians.
According to the World Bank, the Southern African nation of Zambia is showing strong gains in its economic performance with an expected growth rate of 7.3 percent in 2012, up from 6.8 percent in 2011, despite the recent slowdown in the global economies.
Gains have been led by robust growth in construction, transport, communication services, manufacturing and agriculture, according to the first Zambia Economic Brief published December 11 by the WB.
In its recent first issue, Recent Economic Developments and the State of Basic Human Opportunities for Children focuses on Zambia’s continued robust growth, fiscal outcomes, and capital inflows at the end of 2012 against the backdrop of the performance of other Sub-Saharan and global economies.
The Brief stresses the need for the government to spend borrowed and owned resources more prudently. While acknowledging continuing strong prospects for growth, it highlights considerable risks stemming from global uncertainties.
The Brief finds that opportunities for social, economic and political success in the country are often based on a child’s predetermined circumstances such as gender, ethnicity, place of birth, and family origins.
A person should not have fewer opportunities in life just because she is a girl or born in a rural area, according to the report.
With the largest driver of unequal access to opportunities in Zambia being a citizen’s province of birth, the Brief urges an increase in investments in lagging regions, particularly in infrastructure services such as drinking water, sanitation and electricity.
This picture is almost shared by all sub-Saharan African countries most of whom are ravaged by wars and ethnic crisis. These have only worked against the much needed foreign and direct investment for the country.
It was for this reason that Zambia’s Vice President Dr Guy Scott Dr Scott observed that the strength of an economy combined with various other economic such as family business, long term investments and innovation have proved fair and sustainable economic performance in countries such as India.
Dr. Scott pointed out that such a trend that is being experienced in India must also be extended to Africa.
Local media reported that Dr Scott expressed his optimism that the promotion of long term investments in Africa, like India will breed economic transformation.
" In Africa we need to do the same, and we believe that partnership with Indian investors is a prime means to get there," the Vice President observed.
He said this when when he presented a special address at the official opening session of the 9th CII-EXIM BANK Conclave on India-Africa Project Partnership in India, last evening.
" Despite the rich natural resources that Africa endows, the continent has not fully explored itself due to short term measures that are fixed which do not result into sustainable benefits, " he said.
He also cautioned the Indian investors that it was important for the two continents to take into account the agreements that were embraced for purposes of enhancing investments without making unnecessary surprises.
He observed that areas of surprises when doing business with Africa are a thing of the past..
" We need to make sure that we understand what you are promised, and that there are no nasty surprises, " stressed the Vice President.
The Vice President stated that with the lost time, Africa is ready to increase its business linkages with its Indian counterpart.
Dr Scott noted that the trend is an important economic measure that should be thought out if partnership in development between the two continents is to thrive.
India's Commerce, Industry and Textiles minister Anand Sharma explained that Africa and India were running a partnership which has redefined itself.
He told the gathering that the CII-EXIM BANK Conclave on India Africa Project Partnership is not a borrowed institution but that partnership which requires the two continent to offer and learn from each other.
" It is not something that we are learning but that we actively consolidate the views of our leaders, " he noted.
Meanwhile Confederation of Indian Industry president Adi Godreji said technology and sustainable management of the two continent's natural resources were key in attaining effective partnership in development.
More than 30 African countries are attending the meeting.
Among the countries in attendance include Cameroon, Rwanda, Burundi, Botswana, Cote lvoire, Niger, Guinea Bissau, to name but these.
Both the private and public sectors are participating in the conclave.
India's current investment in Zambia is estimated to be in the excess of US $3 billion.
Economic sectors contributing to the growth include agriculture and agro based industries, minerals and infrastructure.
From a backlog of underdevelopment, especially in sub Saharan Africa, Zambia has called for long term investments if the African continent is to sustain its economic growth.
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