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Agribusiness

Premiercon Starch Company Limited Chief Executive Officer Lubasi Yuyi has welcomed the Vice president Madam Inonge Wina’s call for diversification of agricultural products to crops which are climate change resilient such  as Cassava, Millet and Sweet potatoes among others.

The Vice president Inonge Wina is in record to have stated that government is eager to grow the contribution of draught resistant crops basket and double their production level through other crops aside maize, saying they have potential to greatly contribute to the growth of the industry if only farmers consider to diversify.

Yuyi told the Zambian Business Times – ZBT in exclusive interview that the consumption of other non-maize starchy foods is a welcome move and has since called on government to expedite the passing of legislation to blend cassava with maize into mealie meal and increase the uptake of day cassava which he said is a climate change resistant crop.

He added that the consumption of sweet potatoes starch can be increased by passing legislation to blend sweet potatoes starch into edible snacks such as biscuits, crisps, conflaks etc. Yuyi has also asked government to prioritize research into development of seed stock that are drought tolerant for maize adding that improved seed stock for cassava is limited in the country and cannot support the demand that is currently existing in cassava value chain for industrial usage.

He noted the need to further investment into early warning systems of climatic monitoring and timely delivery of inputs to enable farmers plant on time and maximize in high yield. “Improved extension service will ensure that farmers plant on time and therefore get the benefits which will result in high yield”.

“Government should consider promoting industrial crops like guar in drought prone areas like Southern and Western Province because guar has been thrived where rainfall is 700mm or less. This crop has multiple industrial usage and can help in rural industrialization,” he said.

Yuyi has since called on farmers to switch to cassava, sweet potatoes and yams and grow them as cash crops and supply to Premiercon limited saying the crops are drought resistant, low input and can enable one raise more money per unit area comparatively to maize.

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Premiercon Starch Company Limited Chief Executive Officer

Companies

The Jesuit Centre for Theological Reflection – JCTR has stated that it is imperative for Government to put in place appropriate measures and interventions to address the high cost of living which is subsequently perpetuating hunger in the country. JCTR stated that the cost of living for a family of five living in Lusaka increased by K 231.19 from K5, 979.57 in July to K6, 210.76 in August showing a 3.9% increase.

The centre has noted with great concern the continued rise in cost of living which has become a distress to many Zambians especially among the marginalized who are already struggling to afford a decent living hence compromising enjoyment of human dignity.

Releasing the Centre’s Basic Needs and Nutrition Basket – BNB for the month of August 2019, JCTR notes that the current happenings in the country should be of concern as the cost of living for a family of five living in Lusaka increased by K 231.19 from K5, 979.57 in July to K6, 210.76 in August showing a 3.9% increase.

The upward shift in the cost of living was due to rise in prices of some food items. The price of rice increased from K97.48 per 5kg in July to K107.87per 5 kg in August, Beans increased from K25.29 per Kg in July to K33.71 per kg in August and kapenta increased from K181.62 per kg in July to K188.68 per Kg in August. The increase in the price of these food items was mainly due to the reduced availability of the commodities on the market.

In a statement made available to the Zambian Business Times – ZBT by JCTR Programmes Officer Chanda Chileshe, the centre has further noted the need to invest in alternative sources of energy such as solar, wind and biogas to widen sources of energy adding the current power deficit has also contributed the high cost of living.

Meanwhile, JCTR has also noted the need to step up delivery of relief food to regions that are adversely affected by hunger and put in place measures that will enhance promotion, production and consumption of local foods.

“We need to actualize crop diversification and increase production of drought resistant food crops such as millet, sorghum, cassava and sweet potatoes. Crop diversification is vital in ensuring food security especially now that we are experiencing drought which is affecting crop production and subsequently causing hunger especially among the poor. Further, it is high time that there was a deliberate move to bring about a mind-set shift to encourage many Zambians to take up agriculture as one of the major economic activities,” JCTR

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The Jesuit Centre for Theological Reflection –

Tech

Energy Minister Matthew Nkuwa has called for more private sector investment in the off-grid space to help plug the energy deficit in the country and undertake initiatives through the second round of the Beyond Grid Fund for Africa – BGFA Zambia programme.

Preliminary results from the recent studies done by the World Bank and USAID indicate that for Zambia to reach the vision 2030 and sustainable energy for all under the Sustainable Development Goals – SDGs, over 40% of new connections have to come from off-grid solutions.

Speaking at Stakeholders Consultative Workshop on the design of the second round of the Beyond the Grid Fund – BGFA in Lusaka on September 17, 2019, Nkuwa said currently Zambia faces an on-grid power deficit of over 750MW due to low water levels in the Kariba dam resulting from poor rainfall in the 2018-2019 rainy season which has had a severe effect on the productivity of the Zambian economy.

He explained that currently there is EUR 20 million available for the second round of the BGFA for Zambia and is hopeful that the German government’s option through Kfw to consider adding finances to the BGFA is welcome move as it will go a long way in increasing access to electricity in rural areas.

Nkuwa said lack of access to electricity constrains economic and productive activity, impacts health and education, impedes development and has an overall significant adverse impact on the national economy hence the need to roll out modern, clean and sustainable energy services to rural households.

“The development of this fund has come at the critical time when Zambia needs diverse solutions to meet its energy needs. Therefore, its importance and need for diversified, decentralized, clean and sustainable energy solutions cannot be overemphasized,” he said.

The Minister has since thanked the Swedish Government, through SIDA for its support to the Zambian government in the development of the energy sector, and focusing more on poverty reduction through increasing access to clean, sustainable and electricity to poor Zambians.

At the same event, Head of Development Cooperation at the Sweden Embassy Karin Sverken explained that energy is a crucial building block for economic development hence Sweden has made it a priority to work a broad range of partners particularly in Sub-Saharan Africa to ensure safe, dignity and healthy lives for people.

She added that Africa is far from achieving SDG 7 which sets a target of universal access to affordable, reliable and modern energy by 2030 as most people still lack access to modern energy. The Beyond the Grind Fund is designed to cover the gap between what poop people can afford to pay, and the initial, the quite high cost for companies to deliver energy services to new areas and groups of customers.

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Energy Minister Matthew Nkuwa has called for

Lifestyle

The construction of 5 piped water schemes out of the 10 is ongoing in Nkeyema, Kaoma, Luampa, Limulunga and Mongu Districts, with an overall progress of 61% while the rest of the schemes, whose contract has been signed, will be built in Mwandi, Mulobezi, Sioma, Shang’ombo and Nalolo Districts.

And 664,000 people in Western Province have benefited from the US$38 million Water Supply and Sanitation Project as government has constructed 647 boreholes in Western Province, distributed in all the 16 districts.

This is out of the 1, 231 targeted under the Transforming Rural Livelihoods in Western Zambia – TRLWZ project, being implemented with support from the African Development Bank, meant to reduce the distances covered by mostly rural women when fetching water from rivers and other natural sources.

In a statement made available to the Zambian Business Times – ZBT, by the Ministry of Water Development, Sanitation and Environmental Protection Public Rational Officer Amos Zulu, the Transforming Rural Livelihoods in Western Zambia is part of the phase two of the National Rural Water Supply and Sanitation Programme – NRWSSP II.

He said the Ministry is implementing two National Programmes: The National Urban Water Supply and Sanitation Programme; and the National Rural Water Supply and Sanitation Programme, at an estimated cost of US$6 billion.

Zulu said the project aims at providing sustainable and equitable access to improved water supply and sanitation, to meet basic needs for improved health, social conditions and poverty alleviation to 664,000 people in the rural parts of the western province.

He added that the project also involves the construction of 900 sanitation facilities in selected public places such as schools, health posts, markets and bus stations in all the 16 districts. “Further, 770 boreholes and 470 hand dug wells will be rehabilitated while 6 bio – digesters, 250 hand dug wells, 150 manually drilled boreholes and 9 spare part shops are being constructed”, he said.

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The construction of 5 piped water schemes

Lifestyle

The Community Resource Board – CRBs members through their national coordinating office have called for the immediate suspension of trophy hunting in all hunting blocks across the country until after government releases funds owed to respective communities through CRBs.

This follows the advertising of trophy hunting licenses for 2019 in selected game management areas by the department of national parks and wildlife, an arm of the ministry of tourism and arts. Trophy hunting in Zambia is allowed to keep the animal population in check but was designed to benefit erstwhile hunter gatherer communities who have been persuaded to abandon their historical and cultural way of life.

Zambia has since early 1980’s embraced Community Based Natural Resources Management – CBNRM system aimed at empowering and devolving management and user rights to rural communities who live side by side with the wildlife and Zambia’s wildlife Act brought to birth the CRBs across the country, established to participate and benefit from the management of wildlife resources.

The Zambia National Community Resource Board Association – ZNCRBA National coordinator Isaac Banda has told the Zambian Business Times – ZBT in an exclusive interview that government has since 2012, not released funds to the boards which are meant to support employment of over 1,000 community scouts, community coordinators and book keepers across the country, resulting in increased rural poverty.

Banda is however saddened that since the transformation of Zambia Wildlife Authority – ZAWA to Department of National Parks and Wildlife – DNPW, the communities and their Royal Highnesses have been denied their income of over K4 million for the year 2018 from the concession fees. These funds would go a long way to improve rural and chiefdoms community incomes and livelihoods.

He said after engaging government through the Ministry of Tourism and Art in various consultative meetings, the board was assured on February 28th 2019 that funds will be released to the communities of which nothing has been done to date.

The board has since accused government and in particular the ministry of Tourism of not demonstrating any efforts or commitments towards the subject matter despite knowing how communities are suffering without their money.

“We are immediately calling for the suspension of the hunting activities in all hunting block of Zambia. We as signatories to the hunting concession agreement have withdrawn our support, making the existing agreements null and void. We will be working with our community scouts and community members to prevent any further hunting until the matter is resolved,” he said.

Zambia’s wildlife Act of 2015 recognizes the communities as co-managers of wildlife in Game Management Area – GMA. Trophy hunting has since become a major business for CRBs in the GMA in which they raise funds. Most community member have resulted to doing this kind of business as a way of uplifting their living standards.

However, the cries arising from the board of lack of funding for the communities for over 5 years only leave a question mark of either this kind of programme is considered by the Zambian government. One has to understand that there are communities that were living on hunting and these were engaged and agreed that they abandon their hunting activities and instead become community scouts and community animal keepers.

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The Community Resource Board – CRBs members

Companies

Insurance Association of Zambia – IAZ has called for an end to externalization of forex through insurance premiums when these policies and risks can be adequately covered by the insurance industry and its association members in Zambia.

IAZ President Paul Nkoma sated that “each year, millions of kwachas and dollars are externalized because of companies and individuals that seek insurance cover outside the country when it can be provided locally as stated by the law to best support the local Zambian insurance businesses, local employment expansion and further grow the local economy”.

Speaking at a press briefing attended by the Zambian Business Times – ZBT ahead of the insurance week in Lusaka on 16 September 2019, Insurance Association President Paul Nkoma said it is important for the country to understand that financial vulnerability is a major driver to obtaining insurance cover.

The Association has further bemoaned the increased tendency by some insurance policy holders to default on the payment of insurance premiums adding that the sector is losing huge sums of money to Zambian companies and individuals that seek insurance services outside the country when it can be provided locally.

Nkoma said continued installment payment defaults have a negative impact on the overall performance of the sector hence the need to change from defaults on the payments of insurance services if the sector is to add value to the country’s economy.

He further noted the need by the Zambian government to plan for various risks that threaten the financial stability and defend the economic gains achieved.The Association has stated that obtaining insurance is a practical form for financial protection that guides the country and its citizens against excessive expenditure when misfortune strikes.

He added that the act has become a major challenge in the insurance sector as many times, insurance is given on credit or installment plans, hence the high rate of installment payment plans default has a negative impact when it comes to paying claims, financial reporting and overall instability for both the insurance companies and companies covered.

At the same event, Pensions and Insurance Authority – PIA acting registrar Titus Nkwale said the authority is aware of complaints of unfair treatment of customers by some insurance cover providers and that it will put in place measures to ensure that customers are fairly treated.

Insurance penetration in Zambia has continued to increase over the years with the imbedding of weather index insurance driving a better uptake especially in the Agro sector. Micro insurance is also has huge potential owning to the large informal sector in Zambia, like most African countries.

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Insurance Association of Zambia – IAZ has

Mining

The Republic President Edgar Lungu has assured that national that government is determined to ensuring that mining continues to thrive in the country despite the current copper production levels not being favorable.

During the first half of 2019, copper production and earnings declined by 5.3 percent and 23.5 percent, respectively attributing the decrease mainly to low ore grade, suspension of some mining operations, operational challenges and depleting ore reserves at old mines.

The Zambia Chamber of Mines Chief Executive Officer Sokwani Chilembo had since projected a 100, 000 tonnes drop in copper production for the year 2019 and that Zambia’s mining industry is also expected to drop-off the global top ten copper producers list. Zambia’s mining industry has been battling to sustain production levels due to what the chamber of mines has described as challenges to contain cost escalation and to maintain asset quality after over a decade of near biennial tax burden increases.

Addressing the national in parliament on 13 September 2019, President Lungu noted that the country has an array of minerals including gold, which is now being seriously harnessed. He said Gold mining and production is critical in supporting the country’s economic diversification and job creation adding that in maximizing benefits from gold production there is need to continue promoting investment in exploration and strengthen regulatory enforcement capacity.

“Government’s determination in promoting the participation of more economic players, particularly locals, along mining value chains, cannot be over-emphasized. We will continue prioritizing the development of small-scale mining and design specific measures to grow this sub-sector. Particular attention will be paid to gemstones, gold and the mining of industrial minerals.” he said.

President Lungu has since directed the ministry of Mines and other relevant Ministries to provide a clear development framework for the gold mining industry in the country. The Ministry in collaboration with ZCCH-IM had assured the national that progress towards promoting gold mining in the country had been made and Runfunsa district in Eastern province and Mwinilunga district in North western province were among the areas that were recognised for this kind of development.

Reports about illegal Gold and Gemstone mining in these areas have been reported with the current run being described as a Gold rush. However, Zambia’s Gold and Gemstone production has not been properly organized leading to most of the trade being done under the unregulated and untaxed methods.

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The Republic President Edgar Lungu has assured

Companies

By Chola Mpasa
I am not sure how and through which channel to forward my proposals for the 2020 budget to the Minister of Finance, and am sure there are many more citizens who are in this position, the least I will do is put them on my FB page or submit to the Zambian Business Times – ZBT hoping someone can deliver my proposals to the right office.

Newly appointed Finance Minister Dr. Bwalya N’gandu on on record to have stated that “I will be presenting the 2020 national budget in the next few weeks and I wish to remind the business community and the public on the need to respond to government’s call for tax and non-tax proposals for the 2020 budget and the 2020-2021 Medium Term Expenditure Framework. We look forward to more engagements and cooperation with both the public and private sectors during the remaining quarters of 2019,” he said.

The Finance Minister was quoted as saying at the recent ZICA Annual Business Conference (ZICA ABC) in a speech read on his behalf. It is one thing to call for budget proposals and it is another to receive, accept and implement the proposals. First let us look at what the budget is.

What Type of Budget Is intended for 2020
A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled and re-evaluated on a periodic basis. Budgets can be made for a person, a family, a group of people, a business, a government, a country, a multinational organization or just about anything else that makes and spends money. At companies and organizations, a budget is an internal tool used by management and is often not required for reporting by external parties https://www.investopedia.com/terms/b/budget.asp

Having defined a budget, we should now look at what budget the current government is running. This is a difficult question to ask and answer. I am not sure what kind of budget this government is running. Is it an activity based budget?, a cash budget? or a “by election” budget? (a budget where development follows by elections) or whatever name can be given to such a happening.

It is important that before calls are made for people to submit to an important task/activity like a the national budget, there must be clarity and guidelines on the type of budget government intends to put in place for 2020. At least there must be some policy tone or policy statements to give some level of direction to the process.

Otherwise, you may end up submitting capitalist ideas when in fact it is a socialist government in place or it is a pro poor versus private sector driven budget. So, our appeal is that let government come up with some clear indications.

From my experience at company or corporate level, assumptions are made by management and/or board (Cabinet in the case of the national budget), for example on intended growth rates, exchange rates, projected staffing levels, branches and then you ask units (GRZ Spending Agencies and the public) to contribute to the formation and finalization of a budget or a strategic plan. In the absence of that, all submissions will be chaotic. It is like asking for ideas in a wilderness without boundaries.

Review of Past Year(s) budgets 
In order to try and understand what has been done in the past, I went to the Ministry of Finance website and obviously I was looking for the 2018 Annual report. https://www.mof.gov.zm/public- financial-management/

On detailed annual reports, I could only find the ones for 31 December 2011 and 2010 and on the summarised financial report section I could only find reports as at year end for 2012-16. As can be seen, annual reports for 2017 and 2018 are missing or are yet to be uploaded for reasons best known to the finance ministry.

So what does the constitution say about the preparation of these Financial annual reports for the Government of the Republic of Zambia (GRZ) for each year? Article 211 addresses this question and here is what it says. I have added notes in brackets and italics.

“(1) The Minister responsible for finance shall, within three months after the end of each financial year, prepare and submit to the Auditor-General the financial report of the Republic in respect of the preceding financial year. (by 31 March 2019 for 2018 financial year)

(2) The Auditor-General shall, within two months of receipt of the financial report, examine the financial report and express an opinion on the report. (by 31 May 2019 for 2018 Financial year)

(3) The Minister responsible for finance shall, within one month (by 30 June 2019 for 2018 Financial year) after the receipt of the Auditor-General’s opinion, lay the financial report, with the Auditor- General’s opinion, before the National Assembly. (Has this been done for the year ended 2018?Looking at the information available on Ministry of Finance website, are we not right to assume that the accounts for 2018 are not yet ready)?

(4) The financial report shall include information on— (a) revenue received by the Republic during that financial year; (b) the expenditure of the Republic during that financial year; (c) gifts, donations and aid-in-kind received on behalf of the Republic in that financial year (it will be interesting to see gifts that have been received on behalf of GRZ), their value and how they were disposed of; (d) debt repayments; (Very key, a breakdown by creditor will be of great value)(e) payments made in that financial year for purposes other than expenditure; (f) the financial position of the Republic at the end of that financial year; and (g) other information as prescribed.

So in the absence of publicly available latest audited financial statements for the government treasury for detailed accounts from 2012 to 2018 and for summarised accounts from 2017-18, how does the MinIstry of Finance expect people/the public to make informed submissions to the 2020 budget when the past accounts are not available?

My take is that the Ministry of Finance will do better first by complying with the constitutional requirements and making this information publicly available through the website ( we are driving for e-government). Make the detailed and/or audited financial reports for the missing years more especially for 2017 and 2018 available to allow the public review how GRZ finances have fared before asking for submissions.

In the private sector where I am familiar with budgeting process and protocol, there is no way you can go to a board to present a budget for next year in the absence of prior year and the latest audited Financial statements, as the management will get sacked.

We cannot go on as a nation presenting budget proposals year in and year out in the absence of latest audited GRZ Financial reports as required by law, and not just a law, an Act and by the Constitution. i.e. In the absence of proper accountability for past financial periods.

If these latest financial statements  are available, let Ministry of Finance offload them onto their website, so that we and the general public review them, then we can make informed proposals on the 2020 budget. In the absence of that, like I said, it is like making presentations/proposals in the wilderness.

Article 211-4 is very clear on the information that Finance Ministry must provide. It even requires an opinion to be given on “(f) the financial position of the Republic at the end of that financial year;” It is not right or should I say it is unfair to ask for budget proposals when we do not know the financial position of GRZ.

Latest quarterly Budget execution reports for 2019 are also missing on the website. Again how do you make 2020 budget proposals as a public when we are lacking information as to what has happened? so far in 2019 for quarters ended 31 March and 30 June 2019 in the budget execution, why are these reports not made public by updating the website?

Budget and Planning Legislation
In Article 205. The following shall be prescribed:
(a) the financial management and regulation of public funds; (b) the preparation of medium and long-term financing frameworks and development plans; (c) the budget preparation process; (d) public participation, at all levels of government, in the formulation of financing frameworks, development plans and preparation of annual budgets; (e) the content of the financial report of the Republic provided for in Article 211; and (f) the control and disbursement of appropriated funds.

Again article 205 of the Constitution of Zambia is very instructive in summary on the budget process. Has GRZ prescribed as required in d? ; (d) public participation, at all levels of government, in the formulation of financing frameworks, development plans and preparation of annual budgets;

The question is “are these regulations which will enable the public to participate “at all levels of government” in presenting these budget proposals followed? Does this lack of publicity and awareness of the public participation compromise the quality of the budget?.

In conclusion
There is a lot to be said on this call by the Finance Minister for public and institutional proposals for 2020 budget. My proposal to him is that first let him put his house in order. Disseminate to the public the processes as “prescribed” on how these proposals to the budget can be made.

I would even propose that may be he can go round the ten provincial centres like his predecessor did regarding sale tax and hold consultative meetings to enable maximum public participation and engagement.

But even before that, let’s the ministry of finance make available the latest financial statements of GRZ as at 31 December 2018, clearly indication the financial position of the Republic. Once this is availed, then some of us and all those like minded people, experts and other well meaning citizens will gladly present our 2020 proposals for the budget.

For now, there is lack of information on which to base our proposals as a public or organizations. These is need to widen participation and ideas sourcing to unlock the potential that has been talked about that Zambia has.

Chola Mpasa is a Financial Analyst and an ardent ZBT reader. For contributions or comments, post under comments column or send us an email to info@zambianbusinesstimes.com

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By Chola Mpasa I am not sure how

Markets

The Center for e-learning and Information Technology Research CeIT has awarded Atlas Mara a Business Tech Innovate – BTI award of excellence 2019 for the bank’s Tenga Mobile Wallet service. The Tenga mobile money service has now crossed the 300,000 customers mark.

The BTI award of excellence recognizes firms or companies that have introduced innovations in technology that advance business and information technology. Presenting the award at the Bank’s head office in Lusaka on 12 September 2019, CeIT Representative Kibly Lungu commended that Bank for its initiative of using technology in the way business is conducted.

He said Atlas Mara has engaged society in providing an excellent digital financial service and that its 2019 digital wallet “Tenga Mobile Money” on financial inclusion aspect has nailed desirable financial services to most customers.

The Bank has at the same time gotten recognition of the Global Banking and Finance Award for the fastest growing Retail Bank in Zambia 2019, reflecting the innovation, achievements, strategy and inspirational changes taking place within the Global Financial community.

And Atlas Mara Managing Director James Koni pledged the Bank’s commitment to continue investing in digital channels which enable customers make payments through mobile banking. Koni announced that the bank has to date crossed the 300,000 customer mark of customers registered on Tenga since its launch in January 2019 and has thanked its partner Zoona for being part of its milestone.

“Having created such a versatile mobile banking solution for our customers, we have also created value by allowing our physical branch infrastructure to be more focused on customer service by allowing more routine customer transactions to be carried out through mobile banking,” he said.

At the same event Bank of Zambia – BOZ Director, Banking, Currency and Payment Systems Lazarous Kamanga said Atlas Mara’s achievement in digitizing Zambians is clear testimony that the country’s banking system is moving to ensure every Zambian is financially included.

He said BOZ is pushing the agenda of financial inclusion and had identified digital financial services as one of the pillars of ensuring that every Zambian gets access to financial services. Kamanga added that BOZ welcomes innovations such as “Tenga” and has hoped for more innovations to be developed from Atlas Mara to provide services in people’s hands.

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The Center for e-learning and Information Technology

Markets

The Zambia Institute for Policy Analysis and Research – ZIPAR, a think tank organisation has disclosed that Zambia has since 2012 not yielded a positive economic growth rates despite the massive infrastructure investments being undertaken across the country.

Research findings by ZIPAR indicates that Zambia’s growth rate since 2012 has slowed down from the highs of about 7.6% to about 3.6 % in 2018 and that this years’ growth rate has been projected to further slow down to about 2 to 3 %.

Speaking during a seminar held in Lusaka on 12th September, 2019, ZIPAR Acting Executive Director Caesar Cheelo says there is need to cover infrastructure development gaps to help address poverty and improve inclusive development if the country is to recover macroeconomic resilience growth in the economy.

Cheelo said while public expenditure has been high through increased level of debt and debt service burden, it has not resulted in the expected increased economic growth rates, adding that, the massive fiscal expansion and borrowing has not unlocked greater economic growth rates.

“The economy is struggling to create jobs and industrialize. Over the time, the fiscal expansion has resulted in fiscal deficits that have been persistently higher than programmed, rising public debt stock, an escalating debt service burden and heightened risks of debt distress, which have muted economy growth rate,” he said.

At the same event, ZIPAR researcher Mbewe Kalikeka said there is need to reduce on public expenditure stating that optimal use of public resources is crucial in the country’s ability to stabilize the economy and put it back on the sustained and inclusive growth path.

Mbewe notes that government’s wage bill has been the single largest expenditure item on the annual budget adding that the Economic Stabilization and Growth Programme 2017 -2019 – ESGO has to this effect acknowledged that the budget had over time eroded the fiscal space for funding other developmental programs and infrastructure.

Analysts have however pointed out that the lack of direct impact of the infrastructure investments into the current economic growth rates may be attributed to a lagged effect that comes with capital investments, while others have questioned that way the current national Growth Domestic Product – GDP is measured with the government announcing that it would rebase and recalibrate the GDP, an exercise that has dragged but was due to be done this year 2019.

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The Zambia Institute for Policy Analysis and