Privatisation as an Engine of Economic Diversification in Kabwe District of Central Zambia
- October 27, 2021
- Posted by: RSIS
- Categories: Economics, IJRISS
International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue X, October 2021 | ISSN 2454–6186
Privatisation as an Engine of Economic Diversification in Kabwe District of Central Zambia
Silongwa Simakando & Lucy Kamboni
Kwame Nkrumah University, Zambia
Abstract – This study aimed at assessing privatisation as an engine of economic diversification in Kabwe District of Central Zambia. Despite some studies arguing that privatisation subjected former employees to harsh economic conditions due to the loss of their jobs, this study argues that privatisation was an engine of economic diversification in Kabwe. This was because privatisation opened up new doors for former workers to come up with other economic activities that enabled them to earn a living. Instead of experiencing economic retrogression as suggested by some studies, former workers from the privatised parastatals engaged themselves in other economic activities like trading and farming which enabled them to live far much better lives as compared to the time when they were still in employment. The study further discusses that privatisation benefited not only former workers, but the entire community of Kabwe District. Apart from the people of Kabwe, Zambia at large and other parts of the world benefitted from the privatisation of Kabwe’s parastatals. Therefore, the findings of this study will help people within and outside Kabwe to appreciate privatisation as a blessing and not a curse.
KEY WORDS: Privatisation, engine, parastatal, economic, farming
I. INTRODUCTION
In the first few years after independence, the Zambian economy was purely dependent on copper as its major export. Just like other African countries which incorporated mixed economic systems, the Zambian economy had been distinguished by the growing of public enterprise sector. Zambia had a lot of vibrant private sector which prospered largely on account of the economic liberalization system which was in place at that time. This means that the country’s national economy was certainly on the path of prosperity. Sakala (2001:5) states the local currency enjoyed unparalleled strength exchanging at about 45 Ngwee per 1 US Dollar and goods were reasonably priced and within the reach of the people.
