Teaming Up

Zambia has registered annual GDP growth of 5 percent or more over the last 5 years. Inflation has come down to single digit figures from around 15 percent to the current 9.8 percent.

Copper prices have gone from USD2,000 per tonne to recent figures of USD7,400 per tonne.

It is quite clear that there is some economic boom out there for some sectors of the economy. Why does the rest of the economy not experience this positive change and growth?

There may be several reasons for this, but it is quite obvious that a management system for growth is not firmly in place. Economies grow through strategic management such that the gains received from boom areas are used to stimulate other sectors in an effort to open up opportunities across the economy.

For example high copper prices generally lead to more investment in the copper industry, which then leads to increased construction and expansion of the mining activities. More mining suppliers are engaged in business, more trucking is done, and growth is registered wider. This form of growth however, is consequential growth based on the natural pressures and demands that increased mining activities generate in the economy.

A more managed and coordinated growth can be stimulated by strategic planning and investment by the Government and the private sector. This teaming up effort requires some basic shift in the economy, such as copper prices going up to trigger some strategic investments, and quickly impact on the broad based growth of the economy.

The opportunities for local value addition open up and the options for local manufacture and supply of sub components can become a reality. The number of other support services to the mining sector covering transport, accommodation, services, storage, security, sub contracting, office logistics, human resource training, banking, insurance, and many other areas of business can be targeted for local companies to engage in. These options can be promoted rather than letting them fall into place by accident.

The 2010 World Cup is another example of an anticipated boom that begs for strategic planning and teaming up amongst Government, the private sector and other stakeholders to bring about economic growth and open the country to a massive tourism explosion. In this case and at this point in time, the various organizations and Government organs impacting on tourism need to team up, and team up fast before the kick off in the next few months!

Zambia opens up for trade to the region by the end of the second quarter when the COMESA Customs Union is finally implemented. An urgent response must be put in place to ensure that the country benefits from the union. The response required should not be a written letter to member states, but the rapid teaming up of all stakeholders in Zambia to analyze, assess, and form a plan of action on how Zambia and Zambians can gain from this opportunity of a regional market of over 200 million people. The teaming up effort should not end at simply drawing up plans, but should go all the way to committing resources against an implementation strategy so that Zambia can engage in meaningful trade with other member states. The net result should be that Zambian industry grows, Zambian labour is productively employed, and the domestic market share grows beyond the eight borders into neighbouring countries.

If ever there was a time when the teaming up effort is demanded by the country, it is now. At the private sector level it should now be a matter of urgency that all business associations begin to share notes and collaborate for the benefit of the broader private sector. It is absolutely necessary for the private sector to engage Government to highlight the opportunities and challenges for Zambia as a member of the Customs Union. It is paramount that Government Ministries and departments coordinate with each other on economic development issues so that they compliment each other. It is in the nation’s interest for all opportunities to be researched and exploited in the quest for economic growth, job creation, and the economic security of the nation.

2010 presents challenges because it is a pre-election year. There is the risk with each successive day that public attention will begin to focus more on the 2011 tripartite national elections, at the cost of ignoring Zambia’s economic and social development challenges in this crucial year.

The country will have to strike a balance between national focus on considering and strategizing on the economic challenges on the one hand, and the rhetoric and campaigning in preparation for the elections next year on the other hand.

The much touted Public Private Partnerships is now being put to the test. The difference though is that it goes beyond public and private, but extends to every NGO, every religious organization, and every political party.

The need for teaming up this year cuts across all levels of the economy. It also cuts across all political party interests. In fact the need to team up affects all the people of Zambia irrespective of their activities and station in life.

Published 2 March 2010