Financial Insights
No Result
View All Result
  • Home
  • World
  • Opinion
  • Economy
  • Business
  • Culture
  • Politics
  • Lifestyle

    Trending Tags

    • COVID-19
    • Donald Trump
    • Pandemic
    • Bill Gates
    • Corona Virus
  • Tech
SUBSCRIBE
  • Home
  • World
  • Opinion
  • Economy
  • Business
  • Culture
  • Politics
  • Lifestyle

    Trending Tags

    • COVID-19
    • Donald Trump
    • Pandemic
    • Bill Gates
    • Corona Virus
  • Tech
No Result
View All Result
Financial Insights
No Result
View All Result
Home Opinion Economy

Going green will help the Zambian  Economy   flourish again post Covid19

Nachilala Nkombo by Nachilala Nkombo
April 22, 2021
Reading Time: 3 mins read
0

Globally, recessions due to Covid-19 have run havoc and the impact on the Zambian Economy has led  to a full-blown economic crisis. High  Inflation  and debt repayments have been hard-hitting, businesses have shut down; investment spending has been cut and people have lost work. Dr.  Ngandu Zambian Minister of Finance confirmed that Zambia defaulted on a  42.5 million Euro Bond coupon payment in November 2020 after lenders refused to give the government a moratorium.

RELATED POSTS

Daily FiZ – Monday 30/01

 Weekly Bond Market Diary (9th to 13th January 2023)

Weekly Capital Market Report (9th to 13th January 2023)

WWF Zambia Country Director – Nachilala Nkombo

As a response to this crisis, the President  Lungu launched the Economic Recovery Program 2020-2023 (ERP)  that is focused on restoring growth, safeguarding livelihoods through macro-economic stability, economic diversification, and debt sustainability.  This economic melt-down  present a rare opportunity for Zambia to reset and rebuild its economy-based green investment pathways. This approach for  Zambia provides an opportunity to deliver green growth, green jobs while securing the very ecosystems that support the  economy. What Covid19  taught us is that we cannot choose economy over health, without paying. Similarly, we cannot make  economic recovery decisions  that  disregard the environment without paying.

 

Why transition to a green economy?

 Because a  degraded planet is not good for anyone and not good for any business. Our current economic model  that  runs highly on carbon destroys the environment  and hence not sustainable.  Overlooking the current high trends of  nature loss will be more catastrophic for Zambia’s development agenda. The landmark decision by the UN Member States last month to include the contributions of nature to future calculations of GDP is a strategic move. This implies that the  Zambia ERP  goals should move the country towards a green  and inclusive economic recovery that unlocks opportunities for many Zambians. With low financial reserves, natural capital stocks, well  managed could be the pillar for the ailing economy to rebound.

 

In the last 10 years, Zambia emitted  125 million tonnes of carbon, climate change has in turn cost the economy between US$4-7 Billion in the last 10 years and plunged more people in poverty. In the face of both crises,  promoting a green approach will generate growth and jobs without destroying natural capital base upon  which the economy depends. A green economy is defined as low carbon, resource-efficient, and socially inclusive. This shift will not only support economic recovery   but  deal with major environmental degradation the country faces such as deforestation,  climate change, and pollution..  To mitigate these costs,  businesses and communities,  have to actively help stop  rapid environmental  degradation and contribute to the de-carbonization of the Zambian economy.

Buy JNews
ADVERTISEMENT

 

Possible initiatives to Green Zambia’s Economic Recovery Plan  ?

 

With a deliberate public  policies to attract large-scale nature-based investments, governments can relaunch the economy sustainably. Under the  ERP, the option of  Debt for Nature Swaps can also be used  to contribute towards reduction of Sovereign debt distress. These are deals  Zambia can negotiate  with its creditors to channel investments in activities that can restore nature , generate green growth and reduce debt defaults.  The deal allows the country to   swap  making external dollar   debt payments on eligible  debt , for  making payments in local currency to nature restoration and climate adaptation projects  basedon  agreed terms. Nearly 30 countries have used these Debt swaps since the 1980s to provide more than USD 1billion to protect the environment.

 

WWF Zambia  and its partners are driving landscape based  green bankable investments through the Dutch Fund for Climate and Development (DFCD ). Eligible projects have to be private sector-led and have to help save degrading landscapes. Essentially, green funds will flow to projects  in Zambia that deliver the commercial, social and environmental returns.

 

Lastly riding on the Covid19 bond,  launching green bonds for  can support ERP   sustainable growth and  jobs targets. Proceeds  from these greens bond would be used to promote  economic diversification  goals by investing in COVID19 bond  marginalized sectors central to sustainable recovery,  such as climate-resilient agriculture, eco-tourism, and sustainable forestry.

 

As a way of bringing business on board,  there is a need  for government to consider a tax system that will to encourage  supply chains to reduce their emissions and support the maintenance of key environmental services that support their businesses and  drive the economy.   This tax would be a boost to the Zambian treasury.

 

Conclusion

 

The call to  go green is about  the survival of  economies ,companies,  communities and landscapes. It’s thus imperative for leadership in the public sector and private sectors to lead the  green reforms. Lack of  bold  action on climate change  will lead to another 6% reduction in the size of the economy – that will more lost more opportunities and  livelihoods. A  green economic agenda will not only offer Zambia a secure and  sustainable future,  but will make it less vulnerable to the next crisis coming.

 

 

 

Sharing is caring!

  • Facebook
  • Twitter
  • LinkedIn
ShareTweetPin
Nachilala Nkombo

Nachilala Nkombo

Related Posts

Daily FiZ – Tuesday
Economy

Daily FiZ – Monday 30/01

January 30, 2023
 Weekly Bond Market Diary (19th to 23rd December 2022)
Economy

 Weekly Bond Market Diary (9th to 13th January 2023)

January 28, 2023
 Weekly Bond Market Diary (19th to 23rd December 2022)
Economy

Weekly Capital Market Report (9th to 13th January 2023)

January 28, 2023
Weekly Stock Market Review (19th to 23rd December 2022)
Economy

Weekly Stock Market Review (9th to 13th January 2023)

January 28, 2023
Daily FiZ – Tuesday
Economy

Daily FiZ – Friday 27/01

January 27, 2023
MFS – FURTHER CAUTIONARY RENEWAL
Strategy

MFS – FURTHER CAUTIONARY RENEWAL

January 26, 2023
Next Post

Daily FiZ - Friday 23/04

Weekly Stock Market Review (19th to 23rd April 2021)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended Stories

Weekly Capital Market Report (16th to 20th May 2022)

May 25, 2022

Weekly Stock Market Review (28th February to 4th March 2022)

March 18, 2022

Liquid Telecom wins the ‘Best MEA Wholesale Carrier’ award at the Global Carrier Awards 2020

October 26, 2020

Popular Stories

  • Zambian Economist Dr Dambisa Moyo marries billionaire Jared Smith

    Zambian Economist Dr Dambisa Moyo marries billionaire Jared Smith

    0 shares
    Share 0 Tweet 0
  • Gratuity: Protection of workers or killer of business in Zambia

    0 shares
    Share 0 Tweet 0
  • Meet Afridelivery Founder Wallace Ngige, CEO of Zambia’s leading E-Commerce

    0 shares
    Share 0 Tweet 0
  • James Chona is OPay Zambia’s CEO

    0 shares
    Share 0 Tweet 0
  • Raphael Chipoma switches ‘cement for sugar’ –  New CFO announced at Zambia Sugar

    0 shares
    Share 0 Tweet 0

About Us

The Financial Insights of Zambia was established in 2017 as a follow up to the success of The Financial Health of Zambia’s Premier Companies blog which was birthed as an idea that would address the challenge Zambian investors had in understanding how companies within the economy created value. Armed with the annual reports of companies listed on the Lusaka Stock Exchange, we bring business analysis and valuation of these premier companies.

What’s New Here!

  • FQM: The latest Agreements and their Social Impact
  • Daily FiZ – Monday 30/01
  • FQM Medium Term Forecast Analysis
  •  Weekly Bond Market Diary (9th to 13th January 2023)
  • Weekly Capital Market Report (9th to 13th January 2023)
  • Weekly Stock Market Review (9th to 13th January 2023)

Newsletter

Get daily news updates to your inbox!

Subscribe to our mailing list to receives daily updates direct to your inbox!

© 2022 - Fizambia.com - All Rights Reserved

No Result
View All Result
  • Home
  • Business
  • Culture
  • Economy
  • Lifestyle
  • Health
  • Travel
  • Opinion
  • Politics
  • Tech
  • World
  • Support Forum
  • Contact Us

© 2022 - Fizambia.com - All Rights Reserved

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?