Zambia still tenth fastest growing economy in the world

Finance Minister Alexander Chikwanda says the country’s economy in 2014 has remained strong with preliminary real GDP growth of 6 percent; making Zambia the seventh and tenth fastest growing economy in sub-Saharan Africa and the world, respectively.

Mr Chikwanda in his year end state of the economy statement made available to QFM News says this is consistent with the ongoing vision of becoming a middle income prosperous nation.

He says the positive performance was driven by agriculture, manufacturing, construction, energy, transport, communication, and the financial sector.

Mr Chikwanda states that preliminary data shows that mining is expected to contract on account of operational challenges at some localities during the year under review.

He however says considering that growth has been driven by non-mining sectors, this is clearly a reflection of the Government’s relentless efforts in diversifying the country’s sources of growth, income and employment.

The Finance Minister says going forward, it is the intention of the Government to continue with policies and strategies that will further consolidate the diversification of the economy, and in the process ensure resilience to any adverse external developments, such as those associated with volatile copper prices.

And Mr Chikwanda states that following the approval of the 2015 Budget and in particular the new mining fiscal regime, Government fully recognizes the reported concerns by some mines.

He says consistent with the desire to grow the economy, create jobs and alleviate poverty, Government will within the framework of the existing statutes engage the concerned mines, upon presentation of the likely adversity on their operations.

The Minister says this will be with the view to coming up with a common position that will ensure profitable continuity of operations at the respective mines while taking due consideration for the Zambian people to benefit from their natural resources.

Mr Chikwanda has further stated that the current tax structure is a final tax that has replaced the profit based tax, which was largely illusory and disadvantageous to the country.