The Economics Association of Zambia (EAZ) President Dr. Oswald Mungule expresses its support for President Hakainde Hichilema and the Zambian people in response to the devastating drought that has hit the country. President Hichilema’s proactive leadership in addressing this critical issue is commendable.
Dr. Oswald Mungule says the drought has severely affected the Central and Southern regions of Zambia, leading to the destruction of around 1 million hectares of maize, which is almost half of the country’s maize production. The consequences of this drought are significant, with potential power shortages of 430 Megawatts and adverse impacts on water levels.
President Hichilema’s appeal for drought assistance is a crucial step in rallying support and resources to tackle both the immediate and long-term effects of the drought. The appeal seeks financial aid amounting to K23 billion (approximately US$940.6 million) from local and international partners to effectively respond to the disaster, says Dr. Mungule.
“While the drought support is an executive order that does not require parliamentary approval, it is essential to establish transparent and accountable systems to ensure the efficient utilization of funds. Good governance principles should guide the allocation and management of resources to guarantee their effective use.” he said.
Dr. Mungule says it is imperative to use the resources prudently and guard against any potential misuse or mismanagement. Having a clear plan for the allocation of funds is crucial, and adherence to the government’s green and sustainability financing framework, which stresses transparency and reporting on the use of funds, is vital. Transparency and accountability must be prioritized to ensure that the funds benefit those most impacted by the drought.
He says it is important for the government to consider utilizing Green and Sustainability financing, which consists of grants instead of loans. This type of financing offers a chance to secure the necessary resources for adaptation projects across different sectors such as agriculture, health, education, and humanitarian aid.
The key is to ensure that these funds are utilized effectively and in compliance with the existing regulations and laws. Leveraging this financing mechanism can lead to positive outcomes in terms of sustainable development and environmental protection, says Dr. Mungule.
The EAZ, an organization committed to advancing economic growth and well-being in Zambia, acknowledges the significance of tackling the underlying economic difficulties that have been worsened by the drought. We support the government’s plea for a comprehensive response, which involves reallocating resources in the 2024 National Budget to aid in drought response and mitigation endeavors. It is crucial that there is transparency in the utilization of funds and their allocation to sectors that contribute to productivity, Dr. Mungule said.
Additionally, we caution against acquiring green loans in foreign currency as it could result in unnecessary debt burdens. Instead, the emphasis should be on obtaining grants and utilizing them efficiently to address the challenges brought about by the drought and other pressing needs. The EAZ urges all stakeholders, including Government Agencies, Civil Society Organizations, and the private sector, to unite in supporting the government’s appeal for assistance in combating the drought. By working together, we can alleviate the impact of the drought, ensure food security, and foster sustainable development in Zambia, he said.