Chartered Accountant and Economic Analyst Henry Muleya has proposed a "National Economic Retention Index" which he says would complement Gross Domestic Product (GDP) by measuring how much economic value Zambia retains through local employment, local procurement, domestic value addition, taxation and reinvestment.
Muleya says this is particularly important in mining as it will contribute to ensuring wealth generated from copper production remains in Zambia, supports Zambian businesses, creates jobs and builds industries.
He explained in a statement that he is not suggesting that Zambia abandons GDP or discouraging foreign investment but that Zambia measures economic success more comprehensively.
"GDP should tell us how much Zambia produces [while] the National Economic Retention Index should help us understand how much Zambia keeps," Muleya said.
"Ultimately, the measure of economic growth should not simply be whether the economy is getting bigger, but whether that growth is creating better opportunities and improving the lives of ordinary Zambians," Muleya added.
He said though economic indicators such as GDP growth are important, they do not tell the full story, adding that critical question is: "How much of the wealth we generate actually stays in Zambia and benefits Zambians?"
