In one of the annual events held by the Economics Association of Zambia, they had their Third edition on the 11th of December 2020. Sponsored by ZESCO as a platinum sponsor as well as STANBIC and WWF as silver sponsors under the theme A Resilient Economy post COVID-19, its main focus is on revealing opportunities for self-sustainability.
The Economics Association of Zambia is a non-partisan, professional organization for economists and professionals in related field of economics. Originally established in the 1960s as the Lusaka Economics Club. In 1985, the Association was registered as a non-governmental organization and has since continued to serve as a forum for the articulation of economic and other development issues.
The year 2020 has generally been a tough year for a lot of people all around the world and worse off on many economies. Like all things, everything must come to an end, such as the year 2020. After surviving such a strenuous year we aim to build a resilient economy post COVID-19. An economy that is better and stronger.
Economics is a science of optimizing the use of scarce resources. At the Economics Association of Zambia Event, one of the guest speakers was the president of the association DR Lubinda Haabazoka, he gave a speech in which he addressed some underlying issues. He spoke on how the association had a number of events planed for the year but due to COVID-19 most of these events couldn’t take place, the pandemic stifled economic activity and disrupted people’s lives and livelihoods.
He also spoke on the negative impact of COVID-19 and how it has reduced government revenue, increased the number of jobs that have been lost during the course of the year as well as domestic and foreign debt that we need to service as a nation. But despite that he commended the measures that the Zambian Government has taken to ensure the economy stays afloat such as appointing the LAZARD to provide advice on external debt management, engagement with G20 to deal with debt suspension as well as the issuance of the COVID bond aimed at providing liquidity in the economy as to stimulate business creation.
He also expressed his concerns on certain matters affecting the economy such as the depreciation of the Zambian Kwacha, the increase in inflation rates, the high cost of doing business especially for traders who pay rent in dollars. He also expressed his concerns on the fiscal burden on businesses as well as the high payroll taxes. He there after ended his speech by urging all economists to actively participate in building our economy.
Another Guest speaker at the event was the Bank of Zambia Governor, MR Christopher M. Mvunga whom also addressed at the event. He spoke on how the pandemic has had an unprecedented impact on the economy, but has also presented opportunities around us. As we have adapted to new technologies, new methods of doing business and managing our daily lives. He also spoke on how, as a country we must take advantage of some of these opportunities so as to drive our recovery. We must become more self-reliant in terms of food and in other manufactured products.
From the Bank of Zambia’s perspective, they have adopted an accommodative monetary policy in order to support livelihoods and safeguard the stability of the financial sector. As well as reduced the policy rate cumulatively by 350 basis points in May and August and maintained it at 8% in November. He ended his speech by saying the Bank is committed to contributing to the restoration of macroeconomic stability.
The minister of Finance, Honorable Dr. Bwalya Ng’andu (MP) was also a key speaker at this event. He spoke on how we need to take a forward looking approach on the pandemic and how to explore measures for sustainable economic growth. For us to move past this we will have to consume less of what others produce and more of our own products and that the failure to produce our own employment will always set us back as a nation.
Therefore, in order for us to have a resilient economy post COVID-19 we will all have to actively participate in building our economy. Through encouragement of local industries, production, consuming more of our own goods as well as finding ways to create our own employment, only then will we recover and mend our economy after the pandemic’s unprecedented effects on lives and economies.