Investment key to economic growth—Nico report
Investment advisory firm, Nico Asset Managers, has expressed optimism that implementation of the investment projects as highlighted in the government compendium document have the potential to boost growth.
The firm in a recent economic review report said the projects, which include the rehabilitation of Chileka Airport and the Kam’mwamba energy plant, are expected to promote the country’s growth prospects.
Said the report: “If successful they [the projects] will lead to better infrastructure and improved power generation which will aid the manufacturing industry and other business.”
The report said if the power projects announced by government are successful, power generation may improve as insufficient power supply hampers productivity because businesses are unable to operate to their full capacity.
The firm has, however, hinted that growth in 2016 will hinge on the recovery in aid, the expansion of agricultural production and improved investor sentiment as well as innovations in the mining sector.
The firm has also cited risks to economic growth in 2016 as high inflation and high lending interest rates saying these will slow down economic growth as they reduce private sector activity.
Upbeat about the future, the asset managers have said economic growth is forecast to average 5.6 percent in the period 2016-2018 if the economy continues to recover, donor budgetary support flows restart, uranium production resumes once world prices recover and also due to continued exploration of rare earth minerals. n
