In a year where the Zambian economy grossly underperformed, the Economics Association of Zambia (EAZ) through its president Dr Lubinda Haabazoka chose to ignore all criticism leveled at the governments efforts to restore confidence in the economy.
Damning Bloomberg reports, Africa Confidential expose’s and a barrage of corruption scandals surrounding government officials didn’t change the EAZ stance that the current government was doing its best in running the economy.
The EAZ stance was so pro government it led to one of Zambia’s biggest donors the United Kingdom questioning the professionalism of the Association. What was even more shocking to observers was Dr Haabazoka’s recommendation that government nationalize the mines. A country already suffering from a lack of strong foreign direct investment and a lousy record at the management of its parastatals, one can only imagine the disaster that would ensue. Perhaps his Russian education brought out this socialist idea.
Nevertheless EAZ and its President would continue planning for the EAZ summit knowing in the back of their minds that without full government support this summit would go down as a flop. Peddle to the floor with most economic bodies in the country and in the international community questioning their methodology Dr Haabazoka’s Summit came to fruition with a host of the countries greatest economists and finance gurus.
The icing on the cake and probably the reason for EAZ’s recent bootlicking was the attendance of Zambia’s President Edgar Lungu, Kenyan President Uhuru Kenyatta and former Tanzanian President Jakaya Kikwete a feat which would have proven difficult if EAZ was critical of the Zambian governments running of economic affairs.
Dr Haabazoka’s gamble looks to have been further bolstered when a fortnight before the summit the President fired his Minister of Finance Mrs Margaret Mwanakatwe and replaced her with Dr Bwalya Ng’andu a move that immediately shook the markets positively with an increase in investors buying government bonds.
The EAZ saw this opportunity to showcase their summit as the dawn of a new age in Zambia’s economy, whether this is just political rhetoric is up for debate. In the case of Dr Lubinda Haabazoka’s personal exploits this summit will go down as a victory for being one of the biggest economic summits in recent history, covered by local media and international publications like the Economist Magazine.
One would imagine this is not where it ends for Dr Haabazoka and in the near future he will be awarded with a bigger portfolio for his unsavory marketing skills.
By Chipindi Caleb Fundanga (Investment Consultant Institute for Finance and Economics)