Mutati implores financial sector to help grow the economy

Tue, 04 Apr 2017 11:04:03 +0000

By ANDREW MUKOMA

FINANCE Minister Felix Mutati has implored players in the financial sector to do more and contribute to the country’s economic development.

Mr. Mutation said that the financial sector had the potential to play a key role and contributed the country’s GDP.

Speaking at the official opening of the Zambia Capital Market Indaba organized by the Securities and Exchange Commission (CEC) in Livingstone on Monday, Mr. Mutati said that government has taken reforms to grow the economy.

He said that government was aware that over the years, there were only 22 listed companies on the Lusaka Stock Exchange (LuSE), which was far below its expectations.

“Sectors such as pension have remained at the peripheral in terms of developing markets. We need to get our capital market deepened, innovation and become a major source of financing for economic activity beyond the traditional and usual short-term products obtaining on our domestic market,

“We need to re-approach the way we do business so that we add value to our economy. There are many opportunities but great ones don’t come and knock on our doors,” he said

The minister charged that Zaambia should move away from infrastructure development to wealth creation and undertake reforms to grow the economy.

Mr. Mutati observed that reforms were necessary for the government to undertake, whether policy or regulatory, to enable the capital markets play a meaningful role in the development process particularly in the priority sectors of energy and agriculture including industrialization agenda.

He said that government will use the Batoka Gorge Hydropower Project to boost the economy and make money.

And speaking at the same event, Securities and Exchange Commission, Commissioner Jonathan Chipili said that for capital market to be relevant to the development agenda there was need for the development of deliberate plans that direct specific focus on capital markets as long term financing strategy for the government and private sector growth oriented projects.

Dr. Chipili said that the concept of holding the indaba was to deliver on the 2015-2018 strategic focus.

“We are very positive that the deliberations over the next few days will look at the Zambian case and suggest the best suited policy initiatives,

“The ministry of finance has given the commission advice on the need to widely consult so that Zambians develop and own a capital market development agenda that includes stakeholders’ view,” he said.