Using Resource Mobilization to address Zambia's economic challenges

1. Addressing economic challenges
through Resource Mobilization
Presented by: Evans Kachusha

2. Zambia’s Current Economic
Challenges (ZCEC)
External Challenges;
Zambia’s major export “copper” has had
prices slumping by 26% causing mines halt
production and scaling back of some mining
operations. This mostly caused by the major
importer of copper being China having
stopped importing the same.
The global economic showdown and the
strengthening of the United States Dollar, has
led to a drop in commodity prices and a fall in
investment inflows.

3. ZCEC Contd...
Domestic Challenges;
Poor rainfall pattern particularly in the
2014/15 agricultural season has led to a fall in
crop production and a severe decline in
electricity generation.
Huge government expenditures currently in
progress – these include road constructions.
Poor revenue collections mainly caused the
dependence on copper and slowing down of
production by a number of industries due to
the current load shedding being experienced.

4. Effects of Challenges...
Sharp depreciation of the Kwacha
against major currencies especially
the US Dollar.
Increase in price of goods and
services, thus negatively impacting
on Government expenditure.

5. • Diversifying in other sectors such as
agriculture and manufacturing industries
Addressing the Challenges..
Most of the above challenges could be addressed
internally by mobilizing all other available resources:....

6. • Allowing private investments in the energy sector
with necessary incentives such as duty free
importation of electricity generating equipment
and competitive / profitable electricity tariffs.
Addressing the Challenges..

7. • Removal or reduction of subsidies on major
good and services – water & electricity,
maize, fuel (oil) etc. Thus increase
government revenue.
Addressing the Challenges..

8. • Reduction of government expenditure – e.g.
road constructions should be reduced
significantly , reduction of cabinet, reduction
of foreign trips by government employees etc
Addressing the Challenges..

9. • Improve tax collection and broaden the tax
base by putting in simple systems to ensure
all companies are paying taxes including small
trading companies.
Addressing the Challenges..

10. • Addressing corrupted tendencies by
enforcing the law
Addressing the Challenges..

11. • Building of investor confidence by creating
transparency in the governance of the
country
Addressing the Challenges..

12. THANK YOU
End..