Mr Michael Soko United Nations Development Program country governance advisor said that the United Nations’ System is impressed at least with the Zambian government’s economic policies which give hope to the country’s revival and the investors. The donors are impressed with the government’s determination to revitalize the country’s economy based on the positive statements given since assuming power on September 20th 2011 and would inevitably address the challenges the country was facing.
UNDP, which has been instrumental in most of the government’s developmental program, noted however that the current government of Mr Michael Sata should not be judged based on other government’s performances but people should wait to see how it would implement its programs. The new government has been in power since September 20th 2011 and has since unveiled USD 5.5 billion budget which among other issues seeks to address poverty especially in rural areas, create employment opportunities and reduce taxes.
Mr Soko further stated that having good economic policies on paper was not enough to develop the country but the implementation of the policies would benefit the people that strongly yearn to benefit from the change they voted for at the recently held poll which saw Mr Sata emerge as Zambia’s fifth President since Zambia’s independence from Britain in 1964.
He said that there was no need for the government to start looking for new priorities when what was needed was to create wealth for the people of Zambia. It was the concerted view of the UN systems that the government’s budget for 2012 would meet the aspirations of the statements it made to fulfill for the people that ushered it into office.
It may not be in the best interest to begin introducing new priorities. Perhaps one should look at the priorities as they have been presented and see whether in fact those priorities point towards decreasing poverty. Let's wait and see what programs will be put in place because a policy direction has already been given.
Recently, the Zambian government unveiled the 2012 budget which among other\priorities seeks to generate funds through the increased taxation from the mining companies through the mineral royalties which it reviewed to six percent from three percent it had in 2011.
The government, however, reneged on among other pre election promises revisiting the windfall tax where according to the initial focus; Zambia was primed to generate about USD 415 million annually in mining taxes to develop the social sector as compensation to the mining activities which take place in various parts of the country where it was expected to reinvest.
In 2008, then President Mr Levy Mwanawasa sought to maximize on the profits from the mining taxes when he opted to introduce windfall tax. It was however short-lived after his demise on 19 August the same year at a military hospital in France following a stroke. A year later, the government of his successor, Mr Rupiah Banda rescinded the Mining and Minerals Act and abandoned the windfall tax after an outcry from mining companies through the chamber of mines, a consortium they have formed to represent their interests in Zambia.
Several political players have since recalled for the introduction of the windfall tax following government’s desire to increase on infrastructure development under the Sixth National Development Plan which it seeks to implement during the period 2011 to 2015. During the recent opening of the national assembly, President Mr Sata gave a policy direction anchored on reducing poverty and fighting corruption which has been welcomed by different stakeholders.
(Filed by Mr Kapembwa Sinkamba SteelGuru Correspondent Zambia)
