A rebound in Zambia’s economy is expected in the next few months due Government’s commitment in dealing with the myriad of challenges confronting the country, says University of Zambia (UNZA) economist and researcher Mushiba Nyamazana.
Mr Nyamazana said in an interview he believed that the election year would not have an effect on the country’s economy.
He explained that an election year was a good year for some businesses such as advertising and hospitality among others which contributed revenue to Government.
Mr Nyamazana observed that Government had demonstrated a lot of commitment towards dealing with the myriad of challenges confronting the economy.
“It is a very good year for business; so all in all there will be some smiling at the end of the year while others will not; depending on which sector can be good or bad for the economy,” he said.
He said he did not think the business environment would be affected by the forthcoming elections, adding that the business environment was strong and favourable.
Mr Nyamazana however cautioned that an election year could also lead to a budget deficit because democracy was expensive.
He said history showed that Government spent more in an election year which later caused a deficit.
“If you look at Zambia history each election year, Government tends to spend more and there is normally a bit of deficit in Governments coffers because democracy is very expensive,” he said.
He noted that some investors normally withheld their money during such events especially when they predicted that their businesses would be affected.
Mr Nyamazana said some investors on the other hand had confidence in the Zambian economy and went ahead to invest in their businesses.
“There are investors who think the outcome would favour their business and they invest more.
“On the other hand there are others who think that the outcome would not favour their businesses and they do not invest in them. You can never tell,’’ he said.