COMESA SG attributes economic challenges in the region to lack of fiscal discipline by government

Central Bank Governors in the region are failing tell off politicians that they lack fiscal displine hence the economic impasse. THE Common Market for East and Southern Africa (COMESA) has noted that lack of fiscal displine is the major contributor is the major contributor to economic challenges that most countries in the region are faced with. COMESA Secretary General Sindiso Ngwenya says many Central Bank Governors in the region are aware that lack of fiscal discipline is the core problem in the economic challengs which have led to currency depreciations but are failing tell off politicians. “I am not answerable to politicians so I can easily and freely say that most governments in COMESA lack fiscal displine and this is what has partly led to the prevailing economic challenges,“ Mr. Ngwenya said. He has also stated that while exchange rate stability remains a bigger issue with politicians and stakeholders calling for Governors to address this, nothing much has been done toward archieving economic diversification and structural transformation for many economies. The regional block chief has commended Central Banks and Ministries of Finance in the region having technically competent professionals unlike Ministries of Trade whose focus is the language in trade agreements without focusing on benefits. “Copper producing countries like Zambia and the Democratic Republic of Congo can become part of the global value chain if they were for instance producing wire mesh for the automotive industry which is a by product of copper if they were to invest in value addition unlike is the current situation where they just export raw copper,“ said. Mr. Ngwenya was speaking when he officialy opened the 21st Meeting of the COMESA Committee of Governors of Central Banks in the Zambian capital Lusaka on Thursday November 19th 2015.