Increased food production answer to economic woes

By Pelekelo Liswaniso

ZAMBIA is fortunate not to have been included on the just released International Monetary Fund (IMF) list of the world’s poorest countries hard hit by the global financial crisis. Those named in the report as vulnerable countries include Ghana, Nigeria, Sudan and our neighbour, Angola.

The IMF report says poor countries face greater exposure to the current crisis because they are more integrated into the international economy than they used to be.

These countries, according to the IMF, are more likely to feel the impact through a downturn in trade and falls in foreign investment and remittances - money sent home by people working abroad.

We say Zambia is fortunate because the credit crunch taking a toll in other countries is already being felt here. Our Kwacha has depreciated to an all-time low of K5,690 to US$1 and it is feared its volatility may continue.

Trade with other countries has dwindled while the backbone of our economy - the copper mines - are closing down, leaving thousands of workers jobless. Prices of commodities including, mealie meal, and the staple food have skyrocketed, plunging the country into a state of uncertainty.

However, to be forewarned is to be forearmed. The call by Bank of Zambia Governor, Caleb Fundanga, for increased food production in order for the country to earn the much needed foreign exchange through food exports, should be taken very seriously.

During a meeting with the business community in Ndola on Thursday this week, Dr Fundanga said the Zambian economy would only register growth through diversification from mining to agriculture following the drop in metal prices globally.

We agree with Dr Fundanga that this country is not poor. It has a lot of land on which to grow more food that can be exported to neighbouring countries and generate foreign exchange.

Increased food production is the only answer to the effects of the global meltdown, which is already causing havoc in many countries.

In the recent past, there was relative food security in Zambia because the country was blessed with good rains. But the policy of encouraging maize production in every region and subsidised prices did not work well for the country as this resulted in a big change in the eating habits of the people, with maize taking unusual prominence in the diet while traditional crops such as sorghum, millet an cassava were abandoned.

Apart from land, Zambia has abundant water resources which have not been fully developed and utilised for increased food production. The full exploitation of the irrigation potential, for example, can enhance and maximise farming profits, reduce the risk of financial loss due to bad weather and improve household food security.

We are aware that Government is also putting in place measures to ensure quick and equitable allocation of water rights among farmers and other users. The testing of new irrigation technologies and the transfer of appropriate technologies to the agricultural sector is also being encouraged.

Not too long ago, Zambia helped most of her neighbours to attain independence and it’s unfortunate that the country now finds itself having to import food from these countries.
With its resource endowment and vast potential, Zambia should, instead, be the one producing for export to these countries and to earn the much needed foreign exchange.

Now that the envisaged multi-facility economic zones are becoming a reality, the local business community should also take advantage of their establishment and help turn around the economy. Diversification is truly the only way out of our current economic problems.