Economic Happenings in Zambia

  By Michelo Maunga In beginning my forecast for the year 2023, allow me to draw your attention to the perils of 2022. What many hoped would be the year that the global economy arose entirely from the doldrums of COVID, presented a successive and almost as equally disruptive shock to economies around the world. Early in the year Putin invaded Ukraine and set in motion price hikes in energy and food markets. And so, with this in mind, forecasters and economists world over projected the lingering effects of this latest shock would take its toll on the economics of 2023. Many analysts predicted an outright recession in this year. Sentiment seems to be changing, however. Analysts now foresee a more favourable outlook, with the envisaged “soft landing” seemingly more tenable. A soft landing is defined as reducing runaway inflation without causing an economic meltdown. These improving prospects are being driven by more than one factor. The first of these is the reopening of the Chine...

  By Michelo Maunga Introduction Zambia is grappling with an unemployment crisis amongst its young people. Institutions of higher learning and in general the education sector are churning out graduates, only to roam the streets owing to inadequate opportunities. The situation makes for sad viewing. Young, vibrant, enterprising and hardworking young people are left with no income and no opportunity to exercise their skills. Many have to accept being underemployed. Personally, I had to work as a taxi driver for year with my Economics degree from UNZA, something I did with the same enthusiasm I would as an economist at the Ministry of Finance. The Facts Without trying to point figures, the buck ultimately ends with government. It is the responsibility of the state to create a conducive economic environment that provides job opportunities. When the economy is growing, jobs for young people and all other age groups are created. It is interesting to note much of talk on youth une...

  The Common Framework: Guiding principle to Zambia’s debt treatment By Michelo Maunga Introduction Followers of the Zambian economy’s debt engagements will have read or heard reference to the G20 Common framework. The arrangement serves as the guiding principle to the Group of 20, who are the 20 largest economies in the world, in dealing with debt crises in poorer nations. A relatively new initiative, launched in the latter stages of 2020, Zambia is one of the first countries to apply for debt treatment under its auspices, the only other two being Chad and Ethiopia. Little, however, is known of the specificities of the framework. This together with teething issues in its implementation has led to several critiques of its efficacy in as far as expeditiously addressing debt distress. What is this framework?   The framework was designed with a view to coordinate negotiations between debt distressed debtors and their creditors. It allows for harmonization of debt treatm...