PUBLIC FINANCE

RESUSCITATING AN AILING ECONOMY AMID COVID-19 AND RISING PUBLIC DEBT

The 2021 National Budget has been presented under unprecedented global times in Zambia’s contemporary history. Against the backdrop of an already deteriorating macroeconomic environment, the country has been hit hard by health and economic effects of the Covid-19 global health pandemic. Threated by fatalities from the pandemic, countries across the world have put in place a range of mitigating measures, which have in turn led directly to disruption of global trade and movement of people. The pandemic has jeopardized both people lives and their livelihoods. As global output contracts, people have lost their sources of income, which a slump in global aggregate demand has reduced substantially   the world market price of primary commodities, with developing countries suffering the most...

Jul 09, 2020

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The export of tobacco in Zambia increased from approximately $1.7 million in 1995 to $156.5 million in 2012 and averaged of USD100 million between 2013 and 2018. According to the WHO, agricultural land devoted to the harvesting of tobacco in Zambia increased over 350% in two decades from 1993 to 2013.While tobacco as a percentage of total exports for Zambia is rather small (comprising 1.2 percent of the GDP) tobacco is a cash crop for farmers, about 10,000 of whom grow tobacco and a source of employment in the country. The benefit is however outweighed by the burden that exposure to tobacco products presents on public health. The economy loses in excess of ZMW 2,8 billion in revenue due to tobacco related illnesses and deaths....

The Zambian government seeks to relaunch its National Flag carrier, Zambia Airways, using a Joint Venture agreement with Ethiopian Airlines as the strategic partner. Zambia Airways is envisaged to have domestic, regional and intercontinental flights and requiring an initial investment of US$30 million (GRZ, 2018). Airlines can be operated using a number of business models: Full Service Network Carriers (FSNC), Low Cost Carriers (LCC), Holiday Carriers, Regional Carriers, Traditional Freight Carriers, Integrators and Hybrid Carriers (Reichmuth et al, 2008).....

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