Tue, 13 Jun 2017 09:39:34 +0000
The ascent to power by US president Donald Trump and the near certainty of a hard Brexit has created global economic uncertainties with much wider ramifications for Africa and the other developing communities.
On President Trumps immediate agenda was his intention to cut US1billion in foreign aid and diplomacy to provide resources for his America First campaign.
Effectively, this means the elimination of funding to such institutions as the US African Development Foundation that was provided grant support to operational assistance, enterprise expansion and a host of other trade related activities.
Although to his credit funding to the Presidents Emergency Plan for AIDS relief PEPFAR, established by President George Bush in 2003 will remain, the same fate cannot be said of one of the major trade building blocks, AGOA, namely the Africa Growth and Opportunity Act.
Brexit also brings its own trade uncertainties partly as a result of internal U.K. dynamics such as the shrinking pound and indeed external effect in relation to trade based on European community agreements and conventions which must now be negotiated on bilateral terms.
To a large extent the United Kingdom has been supportive of Zambia’s balance of trade with attendant concessions and protocols which now stand in jeopardy at a time when Zambia seeks to implement far reaching economic changes to accommodate and improve fiscal and monetary initiatives towards economic consolidation.
The desire to upscale social spending thereby engendering inclusive growth and development would be greatly compromised by a shrinking resource envelope that hitherto has enjoyed support from the so-called developed world.
It follows therefore that as Africans, and Zambians in particular we must take charge of our own development agenda that best utilizes our abundant natural resources both human, mineral and material.
Under President Obama the United States extended the AGOA programme which gave Africa secure access to the United States.
Many countries benefitted and have subsequently built both forward and backward linkages seemingly beneficial to many African countries that are growing at a phenomenal pace, which pace is now under threat by the inward looking Trump government.
This therefore entails that there must be serious engagement to enhance, consolidate and most certainly expand intra African trade to replace most agreements struck with U.K and other multi-lateral institutions which may equally suffer the evolving negative outcomes of inward looking policies that most developing countries are adopting.
The need for financial discipline, prudent use of resources and creative management of resources must become the hall mark of our private as well as private institutions to reduce dependency on grants and aids which will become more scarce, and perhaps even more prohibitive in terms of demands made on recipients.
More and more developing countries including Zambia will rely less on external support and more on home generated programmes.
Our economic stabilization and growth programmes must be anchored in truly viable feasible and manageable programmes hence our 7th National Development Plan must now be remodeled to take account of new realities including an emerging western world with an inward looking Trump administration.
