Businesses are beginning to show greater confidence in Zambia’s economic direction, with ABSA Bank Zambia Managing Director Mizinga Melu saying customers are increasingly encouraged by the Government’s focus on investment, production, exports and job creation. Ms Melu said the growing optimism was largely being driven by what businesses see as continuity in economic reforms and clearer signals from Government on how it intends to move the economy from stabilisation towards stronger growth. She was speaking when she paid a courtesy call on Minister of Finance and National Planning Dr Situmbeko Musokotwane in Lusaka. Ms Melu said the private sector had taken particular interest in the Government’s Grow Zambia Agenda, which places greater emphasis on expanding production, attracting investment, increasing exports and creating employment while maintaining the economic stability achieved in recent years. “There is a lot of positive sentiment that we are seeing from our customers. It is about continuity more than anything else,” Ms Melu said. She said Dr Musokotwane’s recent explanation of the Government’s growth strategy had also helped businesses understand where the country was heading. “You articulated the growth agenda very well. You brought all of us to understand the approach that you are taking, and we are really excited about that,” she said. For businesses, Ms Melu said, one of the clearest signs of changing economic expectations was in the mining sector. She pointed to Zambia’s ambition of increasing annual copper production to three million tonnes, saying the country was now beginning to see progress towards targets that once appeared difficult to achieve. “When you first spoke about three million tons, there were doubts, but now we can see it coming,” she said. Ms Melu said the prospect of reaching about one million tonnes of copper production would be an important step towards the longer-term target. She also welcomed what she described as innovation and creativity in the Government’s approach to economic management, saying the private sector was looking forward to more initiatives capable of unlocking growth. “I think that was unprecedented. People did not see that coming. That type of innovation is what we are excited about as you begin your new term. We are really anticipating a lot of innovation and creativity,” she said. The ABSA executive also welcomed the Government’s push for greater discipline, efficiency and punctuality in the public service, saying the approach was also putting pressure on businesses to improve the way they serve customers. “This work culture is most welcome. As the private sector, you are challenging us as well,” Ms Melu said. The Government has also been pursuing measures to reduce the cost and burden of Zambia’s debt. During the second quarter, Government launched the repurchase of approximately US$1.36 billion of Fixed Rate Step-Up Amortizing Notes due in 2053, supported by US$600 million in financing from the African Development Bank on favourable terms, together with Government resources. The transaction is intended to reduce future debt obligations and strengthen Zambia’s sovereign debt position as the country moves from debt restructuring towards more proactive debt management. Responding to Ms Melu, Dr Musokotwane said the positive sentiment from the banking sector and other businesses needed to translate into actual economic activity. “Our task now is to convert that confidence into increased capital facilitation transactions, investment, production, exports and jobs,” he said. Dr Musokotwane said Government would continue to maintain policy stability, fiscal discipline and an enabling business environment to give investors greater certainty when committing capital. Ms Melu was accompanied by ABSA Zambia senior executives Brian Kalero, Margret Kanja and Mato Siamabele.