26 Oct 2016

The finance minister Mr Kenneth Matambo says government will develop diversified sources of economic growth to tackle declining growth and unemployment during National Development Plan (NDP) 11.  

Presenting the draft NDP 11 before Parliament on October 26, Minister Matambo said initiatives such as beneficiation, Economic Diversification Drive, cluster development, Special Economic Zones, promotion of local economy development and research would be given the highest priority during the plan.

The plan covers a six year period from April 1, 2017 to 31 March 2023 under the theme, “Inclusive Growth for Realisation of Employment Creation and Poverty Eradication.”

He stated that beneficiation would be targeted to sectors such as mining, tourism and agricultural products in order to develop and establish downstream industries in the economy.

“In addition, EDD would continue to be bolstered by high level of research, innovation and development, which would be given paramount attention during the implementation of NDP 11,” he said.

The minister said the initiatives would be supported by Local Economic Development and Special Economic Zones to be established in various districts and regions.

Following the review of NDP10, he said it was revealed that domestic absorptive capacity as measured by household consumption has been low.

Minister Matambo stated that NDP 11 recognises the need to increase spending in the economy as a strategy for generating economic growth and enhance employment opportunities.

“An increase in employment opportunities has the potential to boost household consumption and increase domestic demand,” he said.

He explained that government has introduced Economic Stimulus Programme (ESP) in order to create employment opportunities in the construction industry, agriculture, manufacturing and tourism sectors.

The government has also recognised the need for an export-led growth as being critical in promoting sustainable economic growth as well as employment opportunities.

The minister said this was a trade policy aimed at speeding up the industrialisation process of a country by producing and exporting goods and services for which the nation has a comparative advantage.

Mr Matambo explained that the strategy would draw from a cluster model, with an initial focus on diamonds, cattle, tourism, mining, finance and other services.

“It must be emphasised that for this strategy to be successful, it should be driven by the private sector,” he said. ENDS