Zambia President-elect Faces Massive Economic Hurdles
"We call both the domestic debt and external debt the elephant in the room,"
LUSAKA/JOHANNESBURG - Zambia's newly elected President Hakainde
Hichilema says he plans to unveil a set of economic policies aimed at
solving the mineral-rich country's deep economic problems after he takes
office next week.
Hichilema, one of Zambia's most successful businessmen and the leader of
the opposition United Party for National Development, made the
announcement in a news briefing Tuesday at his home in the Kanyama
district in the capital, Lusaka.
The six-time presidential candidate on Monday was declared the winner of
the presidential poll, ending incumbent President Edgar Lungu's
six-year rule.
Hichilema won in a landslide, garnering 2.8 million votes — past the
threshold of the more than 50% needed to win the poll. Lungu, who came
in second, garnered 1.8 million votes.
Lungu conceded the election on Monday, saying he would work toward a
peaceful transition of power. Days earlier, he had said the election was
not free and fair, citing irregularities and violence targeting his
representatives at some polling stations.
Hichilema says that after he is sworn in, he wants to focus on
jump-starting the economy, tackling external debt, taming inflation,
creating jobs for young people and inspiring the confidence of
international investors.
"Once we restore the rule of law and order, it's an ingredient to
economic development,” he said. "Once we restore the rule of law, you
will see more investments. You will see more economic activity. We will
start from there."
As one of the world's most indebted countries, Zambia faces massive
economic challenges after it defaulted on its sovereign debt late last
year, with the COVID-19 pandemic exacerbating the impact.
An African Development Bank report shows the economy fell into a deep
recession because of the global coronavirus pandemic, contracting nearly
5%. It also warned the government to stop accumulating external debt
and curb sharply rising public spending to attain debt sustainability.
Chibamba Kanyama, a prominent Zambian economist, said the
president-elect will have to contend with a myriad of challenges,
including "crushing debt,” as he tries to jump-start the slumping
economy.
"We call both the domestic debt and external debt the elephant in the
room,” he said. "At the moment, this is a big problem because our
debt-to-GDP ratio is in fact now over 100%.”
High levels of unemployment in the southern Africa country also pose a
significant problem. Zambia's unemployment rate is expected to top 15%
this year, according to a Trading Economics database.
Zambia is Africa's second-largest producer of copper. But the
mineral-rich country has struggled as the price of copper, the country's
main export, fell amid the crippling impact of its debts.
Neighboring African nations are closely watching the transition and hope
for better diplomatic and economic relations, analysts said.
African affairs analyst Nicole Beardsworth, who monitored the polls in
Lusaka for South Africa's Wits University, said South Africa has taken a
special interest in the Zambian election.
"My understanding is that the previous president was quite difficult to
work with." Beardsworth said. "The incoming president is said to be a
very personable man, a businessman, an economist.
"He's going to have his own set of economic interests, and I think for
South Africa, it may be a real opportunity to reengage in the (Zambian)
economy, to increase South African business interests, to increase South
African trade," she said.
VOA
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