Zambia’s economy will expand only by about 3 percent this year, less than half the 7 percent targeted in the 2015 budget, as plunging copper prices and a power shortage hobble growth, Vice President Inonge Wina said.
The truth is that Zambia’s economy will not expand, it will shrink.
With poor leadership, no electricity, little rains anticipated, copper prices going down and a visionless president, how can the economy grow?
Growth will improve to 4 percent in 2016, Wina said in a speech Wednesday read for her by Roland Msiska, secretary to the cabinet. Low water levels at the hydropower dams the country relies on for almost all of its electricity will cause generation to slump by about 39 percent this year, Wina said.
“Zambia faces its toughest economic challenges in at least a decade,” Ina-Marlene Ruthenberg, the World Bank’s local country manager, said in a speech at the same event in the capital, Lusaka.
The lender forecasts GDP growth of 3 percent to 3.5 percent for this year and next before the economy rebounds to expand by 5 percent to 6 percent by 2018, the World Bank said in a statement released Wednesday.
President Edgar Lungu’s response has been typical of a drunkard, borrow and borrow more. This is the time Zambia needed a president who can actually think.