ECONOMIST HAABAZOKA CREDITS GOVERNMENT FOR ECONOMIC STABILISATION AND SOCIAL PROTECTION GAINS

ECONOMIST HAABAZOKA CREDITS GOVERNMENT FOR ECONOMIC STABILISATION AND SOCIAL PROTECTION GAINS

Economist Prof. Lubinda Haabazoka says the New Dawn Government has made significant progress in restoring Zambia’s macroeconomic stability, restructuring the country’s debt and strengthening social protection programmes, adding that the administration has exceeded his expectations.

Speaking during a live interview with Esther and Farai on Capital FM 99.7, Prof. Haabazoka said the economic conditions inherited in 2021 were extremely challenging, noting that Zambia had defaulted on its debt, suffered high inflation and experienced a severe loss of confidence from international creditors.

“When I look at the economic conditions we inherited in 2021, I believe it is important to acknowledge how difficult the situation was,” Prof. Haabazoka stated.

He said the country’s debt default had severely undermined investor confidence, with many suppliers demanding cash payments because Zambia’s creditworthiness had collapsed.

“Zambia had defaulted on its debt, which meant our creditors no longer trusted us,” he said.

Prof. Haabazoka observed that Zambia’s successful debt restructuring and the stabilisation of the kwacha had restored confidence in the economy, describing the achievement as a major milestone.

“Today, I believe there has been significant progress.”

He further acknowledged the contribution of the International Monetary Fund programme, saying the financing received in 2021 helped strengthen the country’s foreign exchange reserves at a critical time and contributed to the appreciation and stability of the local currency.

“Government also deserves credit for bringing inflation down to single digits,” Prof. Haabazoka said.

The economist also commended the Government for recruiting teachers, health workers and agricultural extension officers, saying the additional public sector employment had delivered positive outcomes despite his usual preference for limited expansion of the public service.

Prof. Haabazoka revealed that although he initially questioned the sustainability of the free education policy and the school feeding programme, his views changed after hearing the experience of a struggling mother whose children now attend school because they are guaranteed at least one meal each day.

“That conversation made me realise that the programme is not only improving school attendance but is also helping vulnerable families.”

He also praised the Government for expanding social protection programmes, including the Social Cash Transfer and food assistance initiatives, saying he had expected a liberal administration to scale back such interventions but had instead witnessed increased support for vulnerable households.

Commenting on infrastructure development, Prof. Haabazoka said the country’s debt obligations had inevitably limited Government spending, forcing authorities to prioritise projects within available revenues.

He also acknowledged that investments in solar energy had helped improve electricity supply and could reduce the likelihood of prolonged load shedding in future.

“Overall, I believe the Government has achieved a great deal, particularly in stabilising the economy.”

Prof. Haabazoka emphasized that although he had previously declined to assign a numerical rating to President Hakainde Hichilema’s performance, the administration deserved recognition for restoring macroeconomic stability, strengthening social protection and rebuilding confidence in Zambia’s economy.