ZAMBIA: Residents of Lusaka express their views and expectations of the new Zambian cabinet

Record ID: 453667

  • Title: ZAMBIA: Residents of Lusaka express their views and expectations of the new Zambian cabinet
  • Date: 19th November 2008
  • Summary: WIDE OF ZAMBIAN PRESIDENT RUPIAH BANDA AT NEWS CONFERENCE BANDA WRITING AT PODIUM NEWLY-APPOINTED CABINET MINISTERS LOOKING ON (SOUNDBITE) (English) RUPIAH BANDA, ZAMBIAN PRESIDENT, SAYING: "We have to encourage foreign investment. We have to process foreign investment as quickly as possible. We have to make our country foreign investment friendly. These are the basic i
  • Embargoed: 4th December 2008 12:00
  • Keywords:
  • Location: Zambia
  • Country: Zambia
  • Topics: Domestic Politics
  • Reuters ID: LVA44N9BVYVB9KSZ4V6KDTW8AH0Q
  • Story Text: Zambia's newly elected president, Rupiah Banda on Friday (November 14) reshuffled the cabinet two weeks after winning a closely contested presidential election to find the late President, Levi Mwanawasa's successor.
    Mwanawasa died from a stroke in August, two years into his second five-year presidential term.
    Banda dismissed five ministers including Finance Minister Ng'andu Magande in the reshuffle.
    Magande competed for the leadership of the ruling Multi-Party Democracy (MMD) to contend October's election and is credited with helping turn Zambia into one of Africa's most stable and economically successful countries.
    Banda vowed to continue with the Mwanawasa's conservative policies, which won praise from Western donors.
    The new president has said his government would continue to welcome foreign investment and fight corruption while making the battle against poverty the focus of its agenda.

    "We have to encourage foreign investment. We have to process foreign investment as quickly as possible. We have to make our country foreign investment friendly. These are the basic ideas that I have in my mind. My colleagues will enrich them when we meet and decided exactly how do we put these in practical terms," said Banda.
    However, experts like economic analyst Chibamba Kanyama warned that Zambia's development will be adversely affected by the current global economic crisis.
    Benefiting from higher copper prices and Chinese investment, Zambia had been held up as one of Africa's most appealing buys but the global market crash has seen an exodus of foreign funds that has hit both the currency and shares.

    "The challenges really are the international factor, the international factor in the sense that the Euro Zone is declining, there is a recession. The Euro Zone is a major market for our exports, particularly copper, tourism, leather, as well as the non-traditional exports. Now with that recession of course you anticipate a lot of economic decline in Zambia as well. I do not think most of the ministers have got that experience, the knowledge of the factors that are contributing to this and even managing the challenge will be very, very difficulty," said Kanyama.
    On the streets of Lusaka, Zambia's capital, some residents are critical of the government and its policies. Despite the progress made, many Zambians still live in poverty.

    "There is extreme poverty here in Zambia. So they should work extremely hard so that they can reduce poverty," said Joseph Mbazima, a resident of Lusaka.

    "They are just cheating us in order for us to vote for them,"
    said Maxwell Tembo, another resident.
    Others criticise the new government for increased prices of food.
    Prices of white ground maize meal, the southern African country's staple food, have in recent weeks risen to about 16 U.S. dollars per 25 kilogrammes in some parts of the country from around 10 USD a few weeks ago, state media reported.
    In the last three agricultural seasons, Zambia turned its maize production around and became a net exporter of maize on the back of good rains and a government policy to provide subsidised fertilisers and seed to peasant farmers.
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