Lusaka-based economist Yusuf Dodia says Monetary Policy Rate (MPR) function of the Bank of Zambia (BOZ) is not enough to promote private sector growth.
Speaking to Lusaka Star in an interview, Mr. Dodia said private sector growth required a coordinated approach from all government sectors.
“We need to see policies from various government sectors that are going to support private sector growth,” he said.
He cited the recent policy on managing boreholes that required people to pay for water as being one of unfavourable policies for the private sector.
Mr. Dodia said that such policies are making the cost of doing business high for the private sector regardless of efforts by BOZ through MPR.
He added that MPR only encourages banks to lower leading rates but private sector and desired economic growth required a holistic approach that included good policies.
Meanwhile, Mr. Dodia has urged government to continue putting in place favourable policies that would reduce the cost of business in Zambia.
This month, BOZ Governor Denny Kalyalya announced that the MPR was to be maintained at 9.75 per cent.
Mr. Kalyalya said this was to induce the lowering of high interest rates that have remained above 24 per cent and boost economic growth.
Born on the 11September 1993 in Lusaka. I believe can do all things through God who strengthens me. Above all we can do much more to gather. WE ARE ALL ALREADY MOTIVATED, IT'S JUST EITHER POSITIVELY OR NEGATIVELY MOTIVATED -DR ROBERT ATTORNEY