World Bank – Investment in Human Capital is the Key to Economic Growth

Investment in human capital is Zambia’s future, claims World Bank Country Manager Achim Fock.

Speaking at the launch of PWC’s donor landscape survey report on Wednesday, Fock said the following: “Investment in human capital is the future of this country and investing in education, health, and social protection yields results. One of the areas where Zambia has the most progress, not so much on reducing poverty or GDP growth, but when it comes to living standards, health indicators, Zambians live much longer and live healthier, definitely than they lived 60 years ago so it does yield results and it is also the basis for future growth”.

However, the current political climate makes it clear that this investment must come first and foremost from Zambia itself. Development aid is in decline, and at the same event, Chairty Mulanga, an associate at PWC, expressed concerns that Zambia had grown too accustomed to this aid: “before we even start talking about the self-financing model, for me it starts with a mindset change. We have gotten so used to receiving this donor support”.

In a world in which developing countries must be more independent, Zambia has shown leadership by hosting the UN-backed Least Developed Countries Forum this month and helping coordinate a response. As for domestic policy, this highlights the importance of Constituency Development Funds (CDF), significantly increased by President Hichilema in 2021. CDF successes show that investment into key health and education infrastructure begins at home.

According to acting Auditor General Dr Ron Mwambwa, aid retrenchment presents an opportunity for Zambia to forge an independent path to development. The Word Bank’s advice is clear; investment in domestic human capital will be a central component of that path.