–This is an extract of the speech delivered on 26th July 2019 by EAZ President at the 1st National Economic Summit that brought Presidents of 3 nations (2 sitting and 1 former) to discuss economic diplomacy
Introduction
Your excellencies, ladies and gentlemen
It is my great pleasure and a rare privilege to stand before renowned giants in thought leadership. At no time in life did i dream that one-day, i will lead an association that will organise the national economic summit that will bring distinguished leaders of our country and the world in general. This is indeed a lifetime honour.
Your excellencies, ladies and gentlemen, on behalf of the Economics Association of Zambia and indeed on my own behalf, I warmly welcome you to the inaugural national economic summit under the theme:
The future of economic diplomacy: promoting inclusive growth and sustainable development in Africa
The theme was carefully conceived in respect of the current economic development thinking. It fits into the united nations’ agenda 2030 that focuses on sustainable development goals and the African union’s agenda 2063 – the Africa we want, and also at national level it had to fit into the seventh national development plan and the vision 2030.
Your excellencies, ladies and gentlemen,
I am sure that this inaugural national economic summit will provide an excellent opportunity to exchange views among professionals with extensive experience and intensive insights in economic and financial policy matters.
Thus, i am particularly delighted to welcome their excellencies:
His Excellency, Dr. Edgar Chagwa Lungu, president of the Republic of Zambia. Your excellency, we are overjoyed that you have honoured your acceptance of our invitation to come and grace the first ever national economic summit under the umbrella-ship of the economics association of Zambia. Furthermore, your excellency, we are grateful for facilitating the invitation of his Excellency Hon Uhuru Kenyatta; and his excellency, Dr. Jakaya Kikwete, former president of the United Republic of Tanzania.
Your excellencies, ladies and gentlemen,
It is my great honour and rare privilege to welcome and acknowledge the miraculous presence of his excellence, hon. Uhuru kenyatta, president of the republic of Kenya. We are highly indebted as an association for the support you have given our association just by your presence and your active participation in this summit. It is a dream come true for us to host you.
Your excellencies, ladies and gentlemen,
I wish to express a special welcome to his excellency, Dr. Jakaya Kikwete, former president of the united republic of Kanzania and now founder of Jakaya Mrisho Kikwete foundation. Your excellency, we are filled with jubilation that you accepted our invitation. We are also extremely appreciative of your active participation in this summit.
Your excellencies, ladies and gentlemen,
I wish to acknowledge the invaluable support we received from well-wishers especially our sponsors who include: zanaco, stanbic, zesco, napsa, zisc life, trade kings, copperbelt energy corporation, standard chartered bank, mahogany air zccm-ih, tomorrow investments, africa greenco, indo-zambia bank, national breweries, national road fund agency, natsave, astria learning and many more. We are also highly indebted to our partners: the bank of zambia, university of zambia, copperbelt university, development and investment infrastructure (dii-conference), mulungushi universiy; zcas university; springer, london business school, havarvd university, zambia institute for policy analysis and research, policy monitoring and reseach centre, university of johanesburg just to mention a few
It is evident that without the invaluable and selfless contributions from our sponsors and partners, we would not have managed to host a successful and extraordinary event such as this one.
Your excellencies, ladies and gentlemen,
May i now turn to my speech titled “championing economics of the people, for the people, by the people: the zambia we want”. The economics association of zambia believes in economics that is at the centre of people’s lives. Your excellencies as an association – we are in agreement with the african union’s agenda 2063 and the united nations agenda 2030 and the sustainable development goals. These are development initiatives that focus on human development in all areas of our lives.
Your excellencies, ladies and gentlemen,
Days are long gone when economics was tilted towards the owners of capital – meaningful economics is about improving peoples’s choices and freedoms. I am a strong believer in the definitions of development provided by three famous economists: Amartya Sen – a nobel lauret in economics; Duddley Seers; and Edgar Owens. Amartya sen’s concept of development as freedom is highly acclaimed. He argues that human development is about the expansion of citizens capabilities. For Sen, freedom means increasing citizens access and opportunities to the things they have reason to value.
Dudley seers suggested that development is when a country experiences a reduction or elimination of poverty, inequality and unemployment. And Edgar Owens suggested that development is when there is development of people (human development) and not development of things.
Furthermore, your excellencies, the title of my speech is inspired by the united nations development programme’s human development approach introduced in 1990 and i quote:
“human development – or the human development approach – is about expanding the richness of human life, rather than simply the richness of the economy in which human beings live. It is an approach that is focused on people and their opportunities and choices”.
Your excellencies, ladies and gentlemen, human development focuses on improving the lives people lead rather than assuming that economic growth will lead, automatically, to greater well-being for all. Income growth is seen as a means to development, rather than an end in itself. [this explains why inclusive growth is part of our theme for this summit]
indeed, human development is about giving people more freedom to live lives they value. In effect this means developing people’s abilities and giving them a chance to use them. For example, educating a girl would build her skills, but it is of little use if she is denied access to jobs, or does not have the right skills for the local labour market. Three foundations for human development are to live a long, healthy and creative life, to be knowledgeable, and to have access to resources needed for a decent standard of living.
Your excellencies, ladies and gentlemen,
It worth noting that we as association, took time to read the development plans, policies and strategies for most of our countries on the African continent particularly for zambia, kenya, tanzania and south africa. We noted that all these countries are making efforts in turning the definitions of development provided armatya sen, duddley seers, the undp and others proponents of human development into reality.
We note your excellencies, ladies and gentlemen,
The focus of governments in sub-saharan africa that include zambia, kenya, and tanzania is to reduce poverty, reduce inequality, reduce unemployment thereby increasing people’s freedoms, capabilities, choices and well-being.
Your excellencies, ladies and gentlemen,
In the case of my mother country Zambia, the economics association of zambia has noted countless forward-looking economic strategies aimed to turning the vision 2030 into reality.
We note your excellencies that the seventh national development plan is a development plan of the people, for the people, by the people as its theme indicate: “accelerating development efforts towards vision 2030 without leaving anyone behind”
And our vision 2030 is centred on human-development: “becoming a prosperous middle-income country by 2030”
Your excellencies, ladies and gentlemen,
The economics association of zambia unreservedly commends the government of republic of zambia that is presently being captained by his excellency, Dr. Edgar Chagwa Lungu, for aiming infinitely high at achieving the main goal of the seventh national development plan which is: “to create a diversified and resilient economy for sustained growth and socioeconomic transformation driven, among others, by agriculture… And to respond to the smart zambia transformation agenda 2064 and consequently to embed in it the economic recovery necessary for the actualisation of a smart zambia.
Therefore, your excellencies, ladies and gentlemen,
As a key stakeholder in the formulation and implementation of 7ndp, especially that our association advocates for sound, inclusive, and sustainable economic policies we wish to comment on the progress made and challenges being faced in the implementation of the seventh national development plan under the five pillars (or strategic areas) of the plan which are:
- To diversify and make economic growth inclusive and job creation;
- To reduce poverty and vulnerability;
- To reduce developmental inequalities;
- To enhance human development; and
- To create a conducive governance environment for a diversified and inclusive economy
Your excellencies, ladies and gentlemen,
We note the special attention being given to citizen influenced, citizen empowered, or citizen owned companies for the purpose of preference and reservation schemes as provided for in both the citizens economic empowerment act no. 9 of 2006 and statutory instrument no. 36 of 2011. It worth noting that the type of businesses that qualify for this support are in manufacturing; agriculture; mining; trading; construction (civil, road, and building and services.
However, your excellence, we note that most of our people seem not to know much about this facility. Therefore, there is need for increased sensitization using timely, relevant and appropriate media and marketing strategies. Furthermore, i wish to urge our people to develop a culture of creativity and innovativeness if their businesses are to thrive and remain competitive. Our people should also develop a culture of spending the financial resources they access from institutions such as CEEC on the intended viable business projects and be highly motivated to pay back if these our institutions are to be exceedingly financially sustainable.
Your excellencies, ladies and gentlemen,
The economics association of zambia again is overjoyed at calls for proposals to undertake business investments with funding from the citizens economic empowerment fund for the year 2019 under the aquaculture seed fund of the zambia aquaculture enterprise development project.
Your excellencies, ladies and gentlemen,
Projects to be considered for funding include table fish production, fish seed (fry and fingerlings) production, fish feed production or other fish farming input supply business, cold chain solution, fish value addition and processing (drying, smoking, fillet, canning, etc.), marketing of fish products, or other commercially viable fish farming backward and forward business activities. The projects will focus on the production and utilisation of tilapia, popularly known as bream, and catfish popularly known as mulonge, mulamba or ndombe.
The economics association of zambia is euphoric that if these projects come to fruition, the fish deficit in our country will be narrowed hence reducing imports that will contribute to lessening pressure on the demand of foreign exchange and consequently reduce the prices of fish that is locally grown.
The economics association is further enraptured that majority of our people especially children will sustainably have access to the much needed proteins for their mental and physical growth.
Your excellency, Dr Edgar Chagwa Lungu, this is a step in the right direction. We can only request that more funding is allocated and disbursed to support such initiatives.
Your excellencies, ladies and gentlemen,
We note that the ceec is running a skills development and entrepreneurship project supporting women and youth where there is even a call for applications for occupation of industrial yards. Ceec is under option one (1) constructing 8 industrial yards in lusaka, chipata, mongu, ndola, kitwe, solwezi, mansa and kasama districts.
The economics association of zambia is rapturous that through your government, your excellency, dr. Edgar chagwa lungu, it is estimated that 300 msmes will participate in option 1 and will have opportunities to access business loans from citizens economic empowerment commission-ceec for purchase of equipment and for working capital. It is expected that this intervention will create at least 4,000 jobs in the industrial yards by 2021.
Your excellencies, ladies and gentlemen,
The economics association of zambia is over-joyed that our government was able to secure financing from the african development bank (afdb) towards the implementation of the skills development and entrepreneurship project supporting women and youth which funds are for the development of industrial yards in zambia through the citizens economic empowerment
The industrial yards will each provide electric power supply from zesco and water supply from boreholes and financial and banking services such as atms, cleaning services and garbage collection and security services.
Your excellencies, ladies and gentlemen,
It is noteworthy that the ceec targeted citizens and targeted companies to occupy light manufacturing workshops for purposes of metal fabrication, wood processing, auto mechanics, agro processing, gemstone processing, information and communication technology-ict and energy as well as bulk storage, timber curing kilns and restaurants to commercially operate in the following industrial yards;
- Mongu industrial yard in western province;
- Solwezi industrial yard in north western provice
- Kasama industrial yard in northern province
- Ndola industrial yard on the copperbelt
- Chipata industrial yard in eastern province
We are self-possessed as the economics association of zambia that the realisation of a diversified and resilient economy for sustained growth and socioeconomic transformation driven, among others, by agriculture is guaranteed with your revolutionary economic policies, your excellency, dr. Edgar chagwa lungu.
However, your excellency, we can only urge your government to ensure that ceec expedites the process of building these planned industrial yards and also extends them to the other remaining four provinces of central, lusaka, luapula, and southern.
Your excellencies, ladies and gentlemen,
The economics association of zambia is also proportionately charmed that the zambia development agency under your government is making efforts to turn its mission into reality which vision and mission are, “to be a dynamic hub for promoting economic development for all” and to “to efficiently and effectively promote and facilitate investment, trade and enterprise development in zambia.”
Your excellencies it is frightening to note that most zambians have a wrong pereception of the zambia development agency – the erroneous discernment is that the zda only offers services to forein investors.
I wish to take this opportunity to correct the perception by informing the nation that through the micro small and medium enterprise (msme) division, zda facilitates skills training through various training packages and other services that promote home-grown industries.
Your excellencies, ladies and gentlemen,
As EAZwe wish to applaud government for declaring kafue town as an iron and steel economic facility zone as a way to encourage home grown industrialisation.
The economics association of zambia that houses a multitude of economic thought leaders appreciates and understands the significance of economic facility zones in promoting and actualising zambia’s industrialisation programme as enshrined in our seventh national development plan.
Your excellencies, ladies and gentlemen,
As an association, we are well aware that it is your government’s intentions to introduce economic facility zones across the country as a way of fast-tracking zambian-owned industrialisation. However, we wish to urge your government to ensure that this is actualised within the implementation period of the seventh national development plan.
Your excellencies, ladies and gentlemen,
The economics association of zambia wish to enthusiastically extol the ministry of commerce trade and industry for formulating the following policy documents that promote trade and industrialisation:
- Trade policy
- National industrialisation policy
- Strategy paper on the promotion of local content –
- The buy zambian campaign
Your excellencies, ladies and gentlemen
The economics association of zambia endears the palm oil plantation and processing project in muchinga province and the tea plantation and processing project in luapula province. It is our desire that the growth and development from these projects will be inclusive and sustainable.
Your excellencies, ladies and gentlemen,
We wish to urge the government of the republic of zambia to continue on the path of diversification within the mining sector from copper to other minerals such as industrial minerals, petroleum and gemstones. Further, government should continue to promote value addition in the sector in a bid to create backward and forward linkages with other sectors of the economy.
Your excellencies, ladies and gentlemen,
We are cognisant of the fact industrialisation requires energy. Therefore, we wish to urge his excellency dr edgar chagwa lungu’s government to emphatically, continue to invest in the energy sector so as to be ready to meet the anticipated increased demand for energy that will reach its peak in 2021 at 3,000 megawatts.
We as the economics association of zambia are confident that with a number of hydro, solar and coal power plants under construction the energy or electricity demand shall sufficiently be met. Therefore, we urge the business community not to panic, but also focus on investing in alternative sources of clean energy.
Your excellencies, ladies and gentlemen,
The economics association of zambia wish to urge his excellence, dr edgar chagwa lungu to continue with his transport network transformation agenda through full implementation of the link zambia 8,000 road project against all odds. Your excellency, we the economics association of zambia still believe that even under the ongoing implementation of the austerity measures are still concerned at the growing silence on the lusaka-ndola dual carriage way. We strongly believe, your excellence that this road is of economic value and can reduce the cost and time of doing business once it is completed.
We as an association have not hidden our desire to see the full implementation of the construction of airports in business strategic areas of our country. It is against this background that we await the completion of the construction of the two modern airports – kenneth kaunda international airport and simon mwansa kapwepwe airport. This will enable zambia gain competitive sustainable advantage in the airline industry as the new zambia airways shall be launched in the coming months as indicated by your government.
However, we wish to urge your government to ensure that the airline and airports are using viable and competitive business models. The national airline should not undo the existing zambian-owned private airlines, but collaborate with them by focusing more on international routes and contribute to reducing and stabilising international and local flight charges.
Your excellencies, ladies and gentlemen,
We wish to note that evidence is there to see that the government is making efforts in reducing the burden of poverty and vulnerability through various intervertions such as the social cash transfer scheme; promoting of girl child education; women empowerment; and promotion of the rights of persons with disabilities.
We acknowledge our government’s commitment to promoting inclusive growth and development by extending social security coverage to the informal sector through the national pension scheme authority, napsa. This pension scheme is now covering domestic workers, bus and taxi drivers, artists, marketeers, traders and small scale farmers.
Your excellencies, ladies and gentlemen,
We wish to hearten our government to continue implementing multi-pronged strategies that tackle the root causes of gender inequality such as access to education, health, nutrition and justice; and perpetuate the current robust investments in the development of socio-economic infrastructure such as roads, schools and hospitals in rural areas. This will secure equitable distribution of the benefits of economic growth. So far the government has done very well by creating new districts so that development can be delivered with ease across the country.
Your excellencies, ladies and gentlemen,
We note as an association, that government has operationalised the kapasa makasa, kwame nkrumah, mukuba and chalimbana universities for increased access to education.
However, we note that the construction of frederick titus jacob chiluba university in mansa, king lewanika university in mongu and kasama university in kasama needs to be accelerated even if we are under the implementation of austerity measures.
Your excellency, as you wrote in the visitors book at your former school – mukuba secondary school – during the launch of former mukuba boys secondary school association and i quote: “there is no better investment than investing in the future through education”
We also appreciate your efforts in ensuring that 82 secondary schools are built across the country by the world bank. And also the construction of several health posts, upgrading of clinics and hospitals in all parts of the country. Nevertheless, there is need to quickly focus on improving the quality of health care provision at all levels – primary, secondary and tertiary health care.
Your excellencies, ladies and gentlemen,
As an association, we impatiently, though enthiusiastically, await the actualisation of the centre for nuclear science and technology. Once operational, as you indicated in your speech to parliament, the centre will contribute towards enhanced treatment of cancer, irradiation of certain agricultural and mineral products for export as well as other industrial uses. This will also create a centre of excellence which will contribute to academic tourism as well as create jobs. And contribute to the achievement of a smart zambia as we move towards attaining vision 2030.
Your excellencies, ladies and gentlemen
You will note that trust is key in every relation. Without confidence and trust between and among economic players, macroeconomic fundamentals will face turbulences. It is against this background that the economics association of zambia has been championing the development and sustenance of trust amongst all key economic, social, faith-based and political stakeholders and thought-leaders.
Therefore, your excellencies, ladies and gentlemen,
I wish to urge all economist and other thought-leaders in zambia and from the entire african continent and beyond to address to address the limitations of existing tools for structural analysis to factor in key linkages and feedbacks – for example between growth, inequality, and sustainable development.
Your excellencies, ladies and gentlemen,
This economic summit is an opportunity for us all to remind ourselves that the central purpose of economics is to improve the lives of people. The burning aspiration of the economics association of zambia is to see our government and its sister governments in the african union to continue taking actions that rebalance the rules of economic theory and practice in favour of the poor of the poorest through the actualisation of inclusive and sustainable economic growth and development strategic initiatives.
Your excellencies, ladies and gentlemen,
We as the economics association of zambia wish to urge each one of us to continue fostering on a new type of growth, one that is more inclusive, with opportunities and benefits for the people who work their lives for that growth, not just for the big owners of capital, the comprador bourgeoisie and the bureaucratic bourgeoisie.
It’s time to bring “the forgotten” back to centre stage. It is for this reason your excellency that the economics association of zambia wholeheartedly welcomed your government’s decision to take over the operations of konkola copper mines in chingola and chililabombwe. However, we wish to urge the committee tasked find an investor to take over konkola copper mines to put the interest of zambians first – zambia has learnt many excruciating lessons from the sale of zccm in the 1990s. We should not repeat the failed lessons of 1990s and early 2000s. So we an association expect nothing but the best for this country from this committee being led by hon. Anthony mumba. We want nothing less but a credible investor or investors who will operate kcm on a win-win basis and who will buy into our vision 2030.
Your excellencies, ladies and gentlemen,
This will be a clear demonstration of our government’s commitment to ensuring that only investors that buy into promoting inclusive growth and development participate in getting the returns from our natural economic resources prowess. The economics association of zambia believes and supports your government’s commitment to maintaining a new form of economic liberalisation that will make a solid contribution towards the actualisation of the zambia we want – to become a prosperous middle income country by the year 2030 through the seven pillars of our seventh national development plan
Your excellencies, ladies and gentlemen,
It is our belief as the economics association of zambia that this national economic summit will contribute to ensuring that inclusive growth and sustainable development become our dna – our born marrow – we should continue to actualise the thinking that – growth as a means and not as an end. We should always remind ourselves that we should not just focus on inclusive growth for its sake, but give priority to the quality of growth over the quantity of growth if zambia is to become a prosperous middle-income country where no one will be left behind.
Your excellencies, ladies and gentlemen,
We wish to urge our government, to ensure that the austerity measures presently being implemented be implemented with the poorest of the poor in mind. There is need to find a balance that will ensure that the poorest of the poor are not made worse off.
We the economics association of zambia are of the view that we also that we should need to strike a balance between economic austerity policies and economic stimulus policies if we are to grow our economy – otherwise, if we religiously implement austerity measures at the expense of stimulus economic policies, we shall and a country be by-passed by inclusive and sustainable economic growth and development.
Though we support the implementation of austerity measures, our association is more inclined to the promotion and implementaion of economic stimulus growth policies that will enable the country to grow and meet its domestic and foreign financial obligations especially that zambia is still a very stable and resilient economy than can never fall into an economic or debt crisis.
Your excellencies, ladies and gentlemen,
We wish to appeal to government through his excellency Dr. Edgar Chagwa Lungu that in our general education school curriculum, we should introduce economics, finance, financial education and entrepreneurship as independent core subjects to be taken from grade 8 to 12 by pupils wishing to pursue careers in these fields. By so doing our general education school curriculum will be responsive to the contemporary economic, political and social needs and challenges of our country. My association is ready to actively participate in the transformation of the school curriculum by development present-day syllabuses for these subjects. There is need for pupils to understand these subjects early in school. May i end with quote from the nobel lauret in economcs, late professor richard stone, and i quote:
“if only economics was better understood, the world would be a better place”
And John Maynard Keynes in 1923 on monetary reform said:
“the long run is a misleading guide to current affairs. In the long run we are all dead. Economists set themselves too easy, too useless a task if in tempestuous seasons they can only tell us that when the storm is past the ocean is flat again.” end of quote
Your excellency, the eaz is focused on rising above all our economic challenges now and not tomorrow.
Further, i wish all economists here to provide accurate, timely, relevant, appropriate economic policy advice. We economists should tell truth to power in respect of economic advice to our president. We should not hide in economic theory jagon or terms. This reminds me of what harry s. Truman – president of the united states between 1945 and 1953 said and i quote:
“give me a one-handed economist. All my economists say, on the one hand … On the other …”
May god bless Zambia, Kenya and Tanzania, African continent as a whole and all of us present here.
Own a piece of history!
Thank you for your attention.