Zambia’s economic story is one of contrasts. While the 2000s saw a boom, a new World Bank report, “Unlocking Productivity and Economic Transformation for Better Jobs,” warns of a persistent shadow: a lack of inclusivity.
“Growth wasn’t enough to create enough good jobs or significantly reduce poverty,” says Nathan Belete, World Bank Country Director for Malawi, Tanzania, Zambia, and Zimbabwe. This fragility was exposed by the COVID-19 pandemic, triggering a recession and a concerning debt default in 2020.
The report prescribes a two-pronged approach for a more secure future. The first key? Unleashing the power of agriculture.
“Zambia’s agricultural productivity is lagging and even declining,” says Albert Pijuan Sala, World Bank Senior Economist for Zambia and co-author of the report. “Boosting it has the potential to be a game-changer for poverty reduction and growth.”
But challenges abound, from inefficient support programs to the increasing frequency of climate shocks. These factors, Sala says, “constrain productivity growth and limit opportunities to diversify beyond maize.”
The second pillar of Zambia’s path to prosperity lies in fostering a vibrant private sector. Critical reforms are needed to unlock broad-based investment and productivity growth.
“Zambia is rapidly urbanizing,” explains Jorge Tudela Pye, World Bank Economist and co-author of the report. “The lack of good jobs is a major bottleneck. The country needs to prioritize strategies that help new and existing firms in labor-intensive sectors become more productive, creating more and better opportunities for its growing workforce.”
Can Zambia unlock its potential and write a new chapter of inclusive growth? The answer lies in its ability to address these crucial challenges.