Zambia Among fastest Growing Economies in the World

Much has been talked about the BRIC (Brazil, Russia, India and China)as the emerging economic power houses in the world with Asia at the center of this growth, but then the surprise package for economic stories lies somewhere else. An analysis by The Economist finds that over the ten year period leading up to 2010 six African countries where among the top ten fastest growing economies in the World, surprising this group was led by Angola!!! and then it has been projected that from 2011 to 2015 Zambia will enter this bracket along side Tanzania, Ethiopia, Ghana, Congo, Nigeria, and Mozambique. China will occupy first place followed by India. The table below illustrates this fact:

Asia’s stunning performance largely reflects the vast weight of China and India; most economies saw much slower growth, such as 4% in South Korea and Taiwan.

Over the next five years Africa’s is likely to take the lead (see chart). In other words, the average African economy will outpace its Asian counterpart. Looking even farther ahead, Standard Chartered forecasts that Africa’s economy will grow at an average annual rate of 7% over the next 20 years, slightly faster than China’s.

Now what does this mean for an ordinary Zambian Youth??

The Youth need to prepare themselves for greater responsibility because the growth being projected requires informed and well educated cadre of a population to absolve increased flow of investments and technological transfer. Therefore Investments in infrastructure such as Education, communications, transport and security will be key lay beds on which this growth should rest. The Periods being mentioned will be at the time when this generation will be at the helm of governance and economic leadership. So we recommend that young people invest in education and obtaining of necessary skills needed for such phenomena growth and that also ensure that we also inculcate the spirit of entrepreneurship so as to reap maximum benefits in the economic boom. 

Recommendation for governments including the PF

Commodity-driven growth does not generate many jobs; and commodity prices could fall. So governments need to diversify their economies. There are some glimmers. Countries such as Uganda and Kenya that do not depend on mineral exports are also growing faster than before, partly because they have increased manufacturing exports. Standard Chartered thinks that Africa could become a significant manufacturing centre.

Zambia economic diversification should continue under the current regime with much vigor, increased mineral and natural gas/exploration should also be on the top priority. Increased  efficiency in the fiscal and monitory polices will signal improved stability. Corruption fight and political stability are a must in Zambia and the rest of sub-saharan Africa. 

Masheke Akashambatwa

Associate Director

DEYOS ZAMBIA

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