Economic Diversification Through Zambia's Agriculture
Learn about the importance of economic diversification in Zambia's agriculture sector and the challenges faced in achieving it. Explore the need for stable economic conditions, predictable policies, and strategic investments to drive growth and sustainability in agribusiness.
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Presentation Transcript
ECONOMIC DIVERSIFICATION THROUGH ZAMBIA S AGRICULTURE Jacob Mwale CEO ZAMACE Limited
Submission: Embrace Agribusiness Submission: Embrace Agribusiness Long term view of agriculture, supported by medium & short term serious investments Be aggressive in implementing drivers of growth in agriculture Our vision as private sector agribusiness is to have a predictable policy environment
What is Required for Economic Diversification What is Required for Economic Diversification Through Agriculture? Through Agriculture? The Zambian government spends up to 98% of its Poverty Reduction Program Budget on maize and fertilizer subsidies (Source MAL, IAPRI) This stifles agricultural diversification
What is Required for Economic Diversification What is Required for Economic Diversification Through Agriculture? Through Agriculture? Stable economic environment Predictable policies low and stable inflation Stable exchange rates
Predictable Policies Predictable Policies Medium to long term commitments SMART management of maize value chain Actual commitments not just plans : Unbundle plans such as NAIP (Livestock, Legumes, Horticulture, Fisheries) Welfare strategies should be used to help the vulnerable because subsidies do not work Agriculture policy in practice is reviewed annually discouraging investment Maize is an economic commodity that should be resolved by the market
What is Required for Economic Diversification What is Required for Economic Diversification Through Agriculture? Through Agriculture? In public expenditure government must begin to invest in the things that help productivity and business thrive (IFPRI)
The Challenge of Economic Diversification Agriculture employs 52.2% (2,872,331) of the total labour force compared to 1.6% (88,251) employed by the mines (CSO 2012 labor force survey)
The Challenge of Economic Diversification Yet, if productivity gains do not occur in agriculture, the biggest employer, poverty will not go down (evidence from Asia, China and Europe) GRZ reports that mines earn from 60 to 95% of foreign exchange Import heavy economy like Zambia the mines will be important Mines are visible and easier to tax
Conclusion Agribusiness can provide the employment, the tax and the foreign exchange that can be the much needed economic diversification route For that to happen we (the country) need to invest in the drivers of agricultural growth to have a long term view of agribusiness To have a stable macro environment
