Zambia has been fortunate in one respect: our presidents have consistently been individuals with big hearts, deeply committed to improving the lives of ordinary citizens. Yet, this noble trait has also been their greatest challenge. While in office, their efforts are often met with harsh criticism, but years after they leave, the sincerity of their intentions becomes clearer. They were not selfish or malicious; they simply tried to do what they thought would benefit the people. However, good intentions alone are not enough to steer a nation toward economic prosperity.
The Legacy of Kenneth Kaunda
Our first president, Dr. Kenneth Kaunda, exemplifies this paradox. His desire to uplift the Zambian people led him to implement policies such as the nationalization of private companies, providing free education and healthcare, and imposing price controls on essential goods. Kaunda’s vision was to create a society where everyone had access to jobs, affordable food, and essential services. It was an ambitious, compassionate agenda.
Unfortunately, the results were catastrophic. Nationalizing private companies led to inefficiencies, as businesses driven by government mandates rather than profit motives inevitably struggled. Price controls, while temporarily relieving the financial burden on households, created shortages, leaving shelves empty and exacerbating hardship. The result was an economic collapse that left Zambia mired in debt and poverty for decades.
This is a painful yet critical lesson: economic principles are indifferent to good intentions. Policies that disregard the fundamentals of supply, demand, and profitability often produce the opposite of their intended effect.
History Repeating Itself
Decades after Kaunda, Zambia’s presidents continue to grapple with the same dilemmas. President Hakainde Hichilema (HH), like his predecessors, is a leader with a big heart. His administration has introduced free education, increased social cash transfer programs, and expanded government employment opportunities, such as hiring teachers and nurses. These initiatives aim to uplift the poor and create opportunities for the underprivileged, which are undeniably admirable goals.
However, these policies echo the same patterns that led to economic stagnation during Kaunda’s era. High social spending requires equally high taxes, which stifles private sector growth. Businesses, unable to sustain profits under heavy taxation, are less likely to expand or hire more workers. In some cases, they may even downsize, compounding the unemployment problem.
Additionally, high government spending often necessitates borrowing, further straining the economy. As debt levels rise, the government faces pressure to allocate more resources to debt servicing, leaving less for essential development projects. Inflation, fueled by excessive borrowing, further erodes the purchasing power of ordinary citizens, undermining the very social programs intended to help them.
Breaking the Cycle
The root of Zambia’s economic struggles lies in the cycle of high spending, high taxes, and high borrowing. While generous social programs are politically popular, they are unsustainable without a thriving private sector. The key to breaking this cycle is fostering an environment where businesses can thrive, generate profits, and create jobs. This requires reducing the tax burden on businesses and workers alike, which, in turn, demands a significant reduction in government spending.
Radical reform is needed to shift the focus from short-term relief to long-term economic growth. Policies should prioritize creating an enabling environment for private sector investment, streamlining regulations, and ensuring that businesses have the confidence to expand. A thriving private sector would generate the jobs and incomes needed to lift Zambians out of poverty sustainably, reducing the need for government handouts.
A Path Forward
President Hichilema has shown himself to be a leader who cares deeply for the Zambian people. His business acumen and understanding of economic principles give him a unique opportunity to break from the past. However, this requires difficult decisions: scaling back on populist spending programs, resisting the temptation to over-borrow, and focusing instead on policies that empower the private sector.
History has shown us that good intentions, while admirable, are not enough to create lasting prosperity. For Zambia to truly recover and thrive, we need policies grounded in economic reality, not just compassionate ideals. Only then can we build a future where every Zambian has the opportunity to succeed—not through government dependency, but through meaningful, productive work in a robust economy.