National Savings and Credit Bank Managing Director Cephas Chabu says the huge budgetary allocation to youth and women empowerment in the 2016 proposed national budget is good for diversification of the country’s economy.
Chabu said diversification of Zambia’s economy can only be attained with allocation of more money to women and youth who are the majority in the country so that they can venture into entrepreneurship.
Chabu said supporting small scale enterprise should be encouraged if the country is to diversify from exporting Copper to other products.
He said the allocation of K187.5 million to the Citizens Economic Empowerment Fund, K150 million to the Action Plan on Youth Employment and Empowerment and K35.7 million to the Women’s Economic Empowerment Funds in the 2016 National Budget is good for the nation.
Minister of Finance Alexander Chikwanda announced the allocation K187.5 million to CEEC and a further K150 million for Youth Empowerment.
Government has also allocated K35.7 million to the Women’s Economic Empowerment Funds and K49.5 million has been allocated for youth skills training and development in the proposed 2016 National Budget.
Chabu said the growth of the country’s economy is dependent on youth and women hence the allocation of resources to these sector is a step in the right direction.
He also praised government for proposing the domestic borrowing target of 1.2% of the Gross Domestic Product in the 2016 national budget.
The move is expected to bring down the levels of domestic borrowing by government which he said is expected to bring down the interest rate for ordinary citizens to borrow money cheaply from financial institutions.