Copper plays a pivotal role in Zambia’s economy yet in recent years, this soft and malleable metal’s value has shown a decrease.
During the launch of the latest World Bank Economic Brief on Zambia titled Wealth Beyond Mining: Leveraging Renewable Natural Capital, it was mentioned that Zambia needs to diversify its economy in order to aid in Copper dependency.
The World Bank Chief Economist for Africa Region, Albert Zeufack added that political will and fiscal discipline among spending agencies is desirable so as to carefully service existing loans, reduce on social spending and carefully invest in capital projects.
The World bank chief economist says there is also need for Zambia to invest in digital infrastructure a move that has power to improve productivity across all sectors.
World Bank Senior Economist for Zambia Samson Kwalingana added that despite the Zambian economy growing by 3.7 percent in 2018 from 3.5 percent in 2017, a stronger recovery was undermined by lower crop harvest and fiscal slippages that led to the accumulation of new public expenditure arrears and high government borrowing that impacted the private sector.
Kwalingana further stated that Zambia needs to undertake bold fiscal and structural policy reforms to preserve macroeconomic stability, boost business and market confidence.
Meanwhile World Bank country manager Ina Ruthenberg noted that Zambia’s economy has been dominated by discoveries, expansion and fluctuations in the minerals sector.
Ina has since advised to soldier on by allowing the country to harness its renewable natural resource endowment to promote sustainable growth.