- June 23, 2023
- Posted by: AITRC 2
- Categories: News, Events, Blog, Report
In a recent report published by the United Nations Conference on Trade and Development (UNCTAD), Zambia’s National Productive Capacities Gap Assessments (NPCGA) have been examined in detail, shedding light on the country’s journey towards economic transformation and its goal of graduating from the category of least developed countries (LDCs).
Zambia, situated as a landlocked developing country (LLDC) and a member of the LDC group, has shown modest socioeconomic progress in certain areas. However, it continues to face numerous challenges commonly experienced by LDCs, necessitating concerted efforts to address its vulnerabilities and foster sustainable growth.
The report underscores Zambia’s heavy reliance on copper mining and exports, which have been the mainstay of its economy. While copper has contributed significantly to the country’s revenue, this dependence has exposed Zambia to the volatility of global copper prices, leaving its economy susceptible to external shocks such as the COVID-19 pandemic. To ensure long-term resilience and stability, diversification into other productive sectors becomes imperative.
UNCTAD’s NPCGA report introduces the Productive Capacities Index (PCI) as a statistical tool to assess Zambia’s productive capacities. The PCI encompasses eight categories that measure various elements of productive capacities. To provide a comprehensive analysis, the report also delves into the micro and macroeconomic fundamentals of the country and evaluates its development plans and visions.
By closely examining Zambia’s socioeconomic landscape, the NPCGA report identifies both the comparative advantages and the key constraints that impede its progress. The report then formulates a series of pragmatic and forward-looking policy recommendations, aimed at addressing these constraints and fostering productive capacities. These policy actions are centered on promoting structural economic transformation, a crucial step for Zambia’s successful graduation from the LDC category.
In addition to domestic policy measures, the report emphasizes the importance of international support measures (ISMs) to complement Zambia’s efforts. These measures aim to enhance the effectiveness of domestic policies and facilitate sustainable development. By leveraging its comparative advantages and implementing the recommended policies, Zambia seeks to achieve its ambition of becoming a prosperous middle-income nation by the year 2030.
The NPCGA report serves as a guide for Zambia’s policymakers, offering insights into the country’s socioeconomic challenges, opportunities, and prospects. It highlights the urgency of diversification, the development of productive sectors beyond copper mining, and the importance of creating an environment conducive to sustainable economic growth.
Zambia’s commitment to implementing the recommended policy actions, in conjunction with the support of the international community, will pave the way for the country’s graduation from the LDC category. With this transition, Zambia aims to unlock its full potential, overcome socioeconomic challenges, and embark on a sustainable path towards becoming a prosperous middle-income nation.
As Zambia progresses on its transformative journey, the NPCGA report stands as a roadmap, guiding stakeholders towards inclusive and sustainable development, and signaling the potential for a brighter future for the nation and its people. To download the report click here
