Zambia Pursues Economic Diversification for Sustainable Growth
Economic analyst Mr. Kelvin Chisanga suggests that, in a concerted effort to promote sustainable economic growth, Zambia is tactically embracing a well-rounded and diversified strategy across multiple sectors.
The country is resolute in steering clear of excessive reliance on the mining sector, which has traditionally served as a fundamental pillar of the Zambian economy
Mr. Chisanga underscores the need for a forward-looking policy strategy that emphasizes resilience and a diversified investment model.
The mining sector, which has been a significant contributor to Zambia’s economy for an extended period, is now prompting a reassessment to ensure a more robust and resilient economic mix.
While discussions on economic diversification have been prevalent in newsrooms across the country, Mr. Chisanga emphasizes the importance of translating these discussions into concrete actions.
The analyst notes that over time, Zambia has witnessed a surge in imports, particularly from South Africa, resulting in heightened trade volumes but also subjecting the local currency, the Kwacha, to rapid depreciation.
The weaker Kwacha, Mr. Chisanga explains, contributes to higher costs of imports, especially for finished products used for widespread consumption. This trend has led to cost-push inflation patterns, impacting key economic indicators.
In technical terms, the analyst highlights that inflation development can be traced to both direct consumption goods and intermediate goods, with the former exerting a more significant influence on the forex market.
On a positive note, Mr. Chisanga acknowledges that a weaker Kwacha has prompted the government to intensify efforts to diversify the local economy.
This move away from total dependence on the mining sector aligns with the government’s commitment to establishing sound policy priorities and frameworks for enhancing the national economic structural system.
As Zambia navigates the complexities of economic restructuring, the emphasis on diversification signals a strategic shift toward creating a more resilient and balanced economic landscape, ultimately contributing to sustained growth and stability.
The nation anticipates that these efforts will yield positive results in the long term, fostering a more vibrant and diversified economy.
