Resume contracts for public works to improve liquidity – Haabazoka

REDUCED government appetite for public works especially in the construction sector has led to
the country experiencing low liquidity in 2022, economists Lubinda Haabazoka has stated.
Dr. Haabazoka said in an interview that low liquidity levels being experienced in the country was
affecting consumption at households and demand for goods and services for businesses has
reduced.
He said the government should in 2023 resume giving contracts to businesses and also
procuring public works in order to feed liquidity into the country.
“We hope that government stabilizes and resume giving contracts to businesses and also
procuring public works especially with the damage that is going to be caused by rains to feeder
roads,” he said.

Dr. Haabazoka urged government to reduce both economic and administrative barriers going
forward following a lot of pronouncements made in 2022 to boost Small and Medium
Enterprises (SMEs) so as to create wealth among citizens.
He said economies have predicted sluggish performance of the economy in 2023 and hoped
that Zambia would prepare itself so as to stimulate production and economic growth and aim at
rebounding to grow the economy to over 4% per year.
Dr. Haabazoka said increase Constituency Development Fund (CDF) was a step in the right
direction in growing the economy however implementation has experienced some teething
problems which the government should ensure to resolve.