By: Kelvin Chisanga
The industrial activities in Zambia right from 1st November to about January 2025 (today) has shown some steady power supply, in which the private sector activities have also further triggered for us to see some significant signs of improvements in the industrial performances responding directly to the ever rising consumer appetite profile.
It is imperative to state that there has been some significant positive changes observed with the latest Purchasing Managers’ Index (PMI), which is showing a good quantifiable increase to about 50.8 around the month of December and December in particular has shown steady improvements knowing well that this is more less like an entertainment month where events of many kinds do happen, so the current scenario points to the total comparison recorded of 49.2 in relation to the calendar month of November.
This rapid shift taking strives is truly marked as a result of the deep sense of stability seen in the power supply backed by ZESCOs external interventions, and this act has so far been seen as the highest points of growth for industries being witnessed with the private sector participations into this aspect.
The December PMI performances clearly indicate that we are getting on board with a totally different economic feelings and expectations, as it is also exciting to see that Zambia is fundamentally grappling back in fostering tight closure to a 12-month crusader of having been experiencing relatively low outputs and poor market confidence as exercised in the overall environment.
The key positive factors of growth and spot lines to talk about are necessitated by a stronger driving toward fresh purchase orders, steady view of rain patterns this farming season in which it looks like we will record some average production scales in agricultural outputs mostly staple foodstuffs, with the improvements already seen in water levels getting to slightly about 11% increment on the reservoirs, and again complimented with employment expansions as the local labour resource gets on shift turns to run about production cycles in a bid to meeting up with glowing consumer appetite amidst stable power rationing extending to straight seven (7) hours of power supply.
In full view of the above, the increased purchases are also basically playing it out on the card based on varying efforts in outsourcing of raw material to finish off the industrial activities especially given the aspect that we are now having some stable electricity supplies during this period from November, as festivities also drove a pack of consumer appetite making demands high on few selected essential goodies.
Although, most firms have since sustained with so much optimism and confidence about the future models of growth prospects in their operations and with regards to the anticipated of productive outputs considering that the basal factor of production keeps on monthly reviews, and it will be conflicting if this monthly fuel policy continues even in this year.
However, it is also quite important to mention and re-emphasize that Zambia’s economy still not out of the woods yet, though the level of confidence currently pointing its lowest amidst many standoff risk factors.
The growth trajectory is without a face of uncertainties which is characterized with the local economy, and it is significant to state that our economic expectations are now anchoring on creating an atmosphere of stronger demand policy conditions for 2025.
Lastly, I would like to state that Zambia’s policy structures, framework and instrumentations are seeing more inclined to the supply side factors as opposed to balance u with demand driven factors on relative equal reviews, and this is the more reason as to why our offshoot or output effects weigh more on supply elements which then brings about some serious deficits that we normally see on the table especially with national budget, export basket etc.
