Economist Naylor Kopakopa says bureaucracy and the […]

Economist Naylor Kopakopa says bureaucracy and the high cost of doing business could undermine the Government’s Grow Zambia agenda by slowing down investments and discouraging businesses from expanding.

Speaking in an exclusive interview with Zambian Business Times-ZBT Kopakopa said excessive bureaucracy increases the cost of doing business because companies are often forced to spend more time and resources navigating administrative processes.

 He said delays in decision-making, corruption and poor implementation of duties can further increase business costs and discourage potential investors from coming into the country. “Bureaucracy is bad. It increases the cost of doing business and derails business,” Kopakopa said.

He said while the Government has expressed its desire to grow the economy, the fundamentals required to support that growth must also be put in place. Kopakopa said his assessment of the Grow Zambia agenda, particularly in the agriculture sector, shows that more needs to be done to support production and marketing.

He said increased production of crops such as maize and soya beans would not automatically translate into economic growth if farmers lack adequate infrastructure and reliable markets.

 “I don’t see the fundamentals that will drive that growth being there. We are talking about production, but they are not helping farmers to market that produce,” he said.

 Kopakopa said farmers could also be discouraged from increasing soya bean production if they are unable to secure predictable markets and fair prices for their produce.

He said the Government should therefore focus not only on announcing production targets but also on creating systems that enable farmers to sell their produce profitably. Kopakopa further said other factors, including weather conditions and electricity generation, could affect the country’s growth ambitions.

He, however, noted that increased investment in solar energy could help mitigate some of the challenges associated with electricity generation. He said the key issue was management and ensuring that policies are supported by practical measures capable of delivering the intended results.

“Management is the issue. We want to achieve that, but we are not putting measures that will help us achieve what we want to achieve,” he said.

Article by Karen Ngulube