By IRVIN MUYUMBWA
SOME political stakeholders have said the World Bank’s decision to reclassify Zambia as a low income country is shameful and a reminder for Government to review its economic policies.
Patriots for Economic Progress President Sean Tembo said Zambia’s reclassification to low income status from lower middle income shows that the government’s interventions have worsened the economic wellbeing of the people.
Mr Tembo said the reclassification signified that the economic welfare of the people was not measured by inflation or wellbeing of reserves at Bank of Zambia but employment, yet the business environment is very bad with employment levels falling.
He said the government should review its economic policies and pump money into the economy by paying contractors as well as focus on empowering local SMEs if the country is to avoid continued downgrades.
Meanwhile, Green Party leader Peter Sinkamba said the reclassification means chances of the country accessing other loans from the market become slim because of the poor country status.
Mr Sinkamba said this is despite the implication that the country will be able to access low interest loans from institutions such as the World Bank and IMF but however notes it does not mean debt relief will come automatically.
Mr Sinkamba said Government should strive to get back the country to middle income status in line with the 2006 vision of being upper income status by 2030 despite the reclassification implying being able.
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