Zambia: Economy

A surge of more than 27 percent in the value of the local currency, the kwacha, against the US dollar since October 2005 is both good news and bad news for Zambia's economy.

The Zambian National Civil Society MDG/GCAP Campaign is holding a special interview with Zambia's Minister of Commerce, Trade and Industry - Honourable Dipak Patel who is also chairperson for the least developed countries delegation at the WTO.

The majority of Zambians have been eating maize meal as their staple food for centuries. But the erratic rainfall pattern which makes the population vulnerable to starvation, may force them to look more seriously at cassava.

Zambia's external debt portfolio shows that the country has borrowed excessively and imprudently, and has managed the debt ineffectively, the Jesuit Centre for Theological Reflection (JCTR) has stated. JCTR made the statements in its submissions to the Constitution Review Commission (CRC).

Zambia's economy until 1991 was largely controlled by the Government. After the change of Government in 1991 many parastatal companies were privatised or liquidated in line with IMF and World Bank conditionalities for the country to receive further aid and rescheduling of its huge US$ 6 billion debt. The effects of privatisation, however, have been harsh.

A survey by the Zambian Debt Cancellation Movement, Jubilee - Zambia, has shown that although 60% of the Zambians have heard about the Debt cancellation campaign, they do not believe that the resources recovered from cancelled debt will go into developmental projects or social services. This, the survey revealed was due to the lack of transperancy and misuse of funds by political leaders.