26/04/2024
Economic outlook of pro-poor policies under the UPND New Dawn Administration
By Frank Bwalya
The United Party for National Development (UPND) has faithfully adhered to its guiding principles and vision for Zambia as outlined in the summary manifesto 2021-2026. The manifesto describes the character and ideology of UPND as guided by a people-centered and pro-poor development strategy that guarantees the availability of basic needs of all the people of Zambia. Therefore, the Economic Transformation Programme (ETP) of the UPND is the overarching framework that aims to bring together interventions in the various sectors of the economy to create more and better-quality jobs to eliminate poverty. As such, the main focus of the UPND is to create more shared wealth than more tycoons.
However, some critics of the UPND have alleged that the Party pursues capitalist principles and cares less about the ordinary citizens of Zambia especially the poor. Some of such critics cite what they term as concentration on pleasing big capital interests such as investors in the mining sector with some branding President Hakainde Hichilema as championing the cause of foreigners. The UPND manifesto dispels such allegations effectively.
Moreover, an objective review of the performance of President Hichilema and the New Dawn government yields a different reality.
Let us begin with the question whether the UPND is pro-poor or not. Examples are many to demonstrate that President Hichilema runs a pro-poor government. The New Dawn government has not just maintained the Social Cash Transfer (SCT) programme but has taken it to a higher level. The truth is that the UPND has increased the budget allocation to SCT from K2.3 billion in 2021 to K3.7 billion in 2023. As such 1.3 million households benefit from SCT hence impacting 5.7 million vulnerable people.
It should be underscored with haste that the UPND has not just increased the number of beneficiaries but the amount that they get. Households without a person with disabilities who used to get K150 per month now get K200 whereas those with a person with disabilities who used to get K300 per month now get K400. It should be admitted that the amounts remain low. But there is no doubt about the commitment of the UPND government to further increase not only the number of beneficiaries but the amounts as well as the economy improves.
The reality that this was one of the first actions the UPND took after forming government underscores the urgency the Party attaches to ensuring better care of the poor and vulnerable in our society.
Moreover, the gesture speaks volumes about what the UPND would do should more funds be available for such programmes. For sure, President Hichilema and his team would ensure that majority of our poor and vulnerable citizens are supported by giving them an income to help them affords their essential needs.
One does not need to be a rocket scientist to understand why President Hichilema has set his priority as growing the economy.
Indeed, a weak economy cannot deliver the essential needs of the citizens. Moreover, when the economy is weak, job creation in the private sector tends to be low and companies fail to pay workers better salaries. Furthermore, when the economy is small and weak, revenue collection through taxes tends to be not enough thereby undermining the integrity of the national budget. All this begs the question regarding how we can grow our economy.
One way to grow the national economy is to attract more foreign and local investment in various productive sectors. The investment should not just be capital but more importantly technology transfer. As such, Zambia needs to attract massive investment in agriculture, mining, energy, tourism, and other sectors with potential not only to create a lot of wealth but to remunerate the Zambian workers well. Zambia also needs more capital for loans to small and medium entrepreneurs especially those involved in production of goods.
This explains why President Hichilema has kept fine tuning his focus on attracting investment not only in the mining sector but all the sectors bearing in mind that all the sectors have potential to contribute more to Zambia’s economic recovery. Against this background, it is absurd to accuse President Hichilema of paying more attention to foreigners. How can one accuse a fisherman of liking fishing as if it is done for fun. A fisherman risks his life to get on the usually rough waters in the night to catch fish so that he can bring some money home and feed his family. Similarly, when President Hichilema spends a lot of time attracting would be investors and engaging bilateral and multilateral institutions to help Zambia with issues such as debt restructuring, it is not because Mr. Hichilema loves to be in the company of such people and institutions but because of his commitment to serve the Zambian voter better through the benefits that a strong economy delivers.
Talking about other examples to demonstrate the commitment of the New Dawn government to pro-poor policies one would not miss free education and increasing the Constituency Development Fund (CDF) to K30.8 million from a pantry K1.6 million under the Patriotic Front government. These policies and many other initiatives aimed at empowering the citizens are enough testimony about the UPND people-centered development agenda. Of-course, the cost of living has increased not only in Zambia but other countries globally. The main driver of the rise in the cost of living has been the rising cost of production mainly due to increasing fuel and electricity prices. Dealing with this problem points us back to the main issue of improving the economy and dealing with factors such as inflation. But why should Zambians remain hopeful of a better future?
Now that restructuring our national debt is under way coupled with increased interest in various sectors by both local and foreign investors owing to improved investment climate and policy integrity coupled with restored credit worthiness, Zambia is surely set to record an economic rebound. The continued availability of millions of Kwacha at the local level in terms of CDF alongside the huge investments flowing into the mining sectors such as at Mopani, New Luanshya Mine also called Shaft 28, Konkola Copper Mines and the mining expansions worth millions of dollars mainly in North-Western province, are all part of the seeds of an economic renaissance in Zambia. As such, we should remain hopeful as we each do our best to contribute to Zambia’s economic revival through hard work and prudent stewardship of public funds and assets.
In conclusion, Zambia has the right and competent driver. The vehicle, however, is not in good condition. We need to work together to fix it and once it is improved, we shall see more sustainable economic development for the benefit of majority of our people.
The author is Director General, Media- UPND Presidential Support Program.
