Economic Expert Calls for Structural Overhaul to Address Zambia’s Economic Imbalance
Zambia’s economy is grappling with a significant trade imbalance, prompting calls for urgent structural remodeling, says economic expert Kelvin Chisanga.
He highlights the nation’s oversized import bill, which far outweighs its export earnings, creating persistent economic disparities fueled by governance challenges, political dynamics, and external shocks.
Speaking on the matter, Mr. Chisanga pointed out that Zambia’s balance of trade faces mounting pressure from exchange rate fluctuations and climate-induced economic shocks.
“The balance of trade has been severely impacted by an overheating effect in the exchange market and external shocks, including climate-related challenges this fiscal year,” he said.
To stabilize the economy, Mr.Chisanga emphasized the need for increased foreign exchange supply and a strengthened export sector. “We need an expanded export bill to counterbalance forex demands, which are driving inflation and elevating the cost of imported goods and capital stock,” he explained.
He further criticized the structural inefficiencies in Zambia’s economic framework, arguing that regional trading peers are outperforming the country due to more robust inter-trade participation.
“Our economic architecture has been misaligned, allowing other nations to dominate regional import processes. This leaves Zambia in a disadvantaged position,” Mr.Chisanga noted.
In closing, he urged policymakers to address the root causes of Zambia’s economic challenges, including policy inefficiencies, implementation gaps, and a lack of focus on economic potential.
“The way forward demands a unified approach to tackling these pressing issues,” he concluded.
