Thursday, March 28, 2024

Kwacha to remain stable and economy to grow by 6.3%-BOZ

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THE Bank of Zambia (BoZ) expects the Kwacha to remain stable because of increased copper prices on the London Metal Exchange, which are currently hovering around US$6,000 for a metric tonne.

And BoZ has projected a gross domestic product (GDP) growth rate of 6.3 percent to be achieved by the end of this year.

BoZ Governor Caleb Fundanga said the Kwacha exchange rate against the United States dollar is currently stable.

The BoZ Kwacha exchange rate is at US$4,665 for buying and US$4,685 for selling as at yesterday
Dr Fundanga was speaking at a Zambia Development Agency (ZDA) business seminar held for a 60-man South African business delegation which has accompanied South African President Jacob Zuma.

Dr Fundanga said despite the global economic crisis, the economy is expected to grow by 6.3 percent in 2009 from the 6.0 percent in 2008.

He attributed this to robust growth in mining, agriculture and construction sectors.
He also projected inflation to fall to single digit levels in 2010.

Meanwhile, BoZ has granted licences to five banks this year, including one to a Malaysian bank called International Commercial Bank Zambia Limited.

Dr Fundanga cited First National Bank Zambia Limited, United Bank for Africa Zambia Limited, Ecobank Zambia Limited, Access Bank Zambia and International Commercial Bank Zambia Limited as banks that have been issued with new licences to operate in the country.

He said the financial sector has remained resilient with overall financial conditions being satisfactory with adequate capital.

He urged South African investors to take advantage of investment opportunities in various economic sectors.

[Zambia Daily Mail]

42 COMMENTS

  1. 6.3%?…… Who a hell comes up with these figures? You got to be kidding me! I don’t know if there is anyone out there who would buy this crap!

  2. “the economy is expected to grow by 6.3 percent in 2009 from the 6.0 percent in 2008”

    Back to reality .. how has the 6 percent growth in the economy improved the life of the average Zambian in the street?

    and increase of 0.3 percent means swat if the is no improvement of the livelihood of the people

  3. The zambian economy is truelly showing positive growth, the figures are there,but it seems all these songs about economic growth are a way of trying to build RB’s incumbancy,we are hearing this song almost on a daily basis, but what they are not saying is weather there’s been any economic development to go with the growth.Economic Growth and Economic Development are 2 different things, thats why some bloggers are quick to point to the fact that the common man is not seeing any benefits of this Economic Growth

  4. Economic growth occurs where there is an increase in the level of output of a country.The GDP measures the value of goods and service produced by the firms of an economy in one year. It can increase due to a single basic reason,”the amount of goods and services actually produced during the course of one year has increased” and the govmt has gained more in form of foreign reserves
    Economic Development is a broader concept than economic growth. It combines growth with an improvement in living standards. Economic growth does not take into account how GDP is distributed or the degree of poverty that exists or how much access people have to basic needs such as schooling, heath and socials services.

  5. So fellow bloggers,lets not just rush to condemn these figures, somehow they are true but economic growth should not be compared to economic development,,,,zambia has exported a lot of agricultural products to Congo and Zimbabwe,and most of the zim farmers set up camp in zambia,hence a lot of agricultural output,zimbabwes woes have somehow been a blessing in dusguise for zambia and all this has nothing to do with RB,nuff said!

  6. Isn’t the fact that the mortality rates for under 5s has gone down by 30% according to UNICEF not an indicator that economic growth is reaching the ordinary people?

  7. Yeah, this real figures,. And drive round Chalala , ten miles on Great North road, Leopards Hill road, Ibex etc and you will see developments going on If you ask how this has changed the living standard of the common man> I will ask you who the builders are, the transporters of cement, blocks , sand etc. I might even ask who produces and supplies the cement. I also say the fact that you dissaprove of someone does not mean you should be blinded. If all anyone can see is failure then either they are failures themselves or dissilusioned . Actually such lack of objectivity makes one no different from the Cadres who dance at Airports or the Lifwekelo,s who always see a demi God in the MMD leader of the time

  8. These projections are unbelievable. I would have taken Fundanga seriously if his Central Bank and the CSO were in a position to tell us what the GDP growth figures were in the first two quarters of 2009. And since he is not in a position to do so; I am honestly not going to have faith in his crystal ball of economic forecasting. Other countries calculate GDP growth every quarter. Why cant the Economics Dept at BOZ do so? What are they paid for?

  9. Actually they do give at least half yearly results. So there is need to doubt these figures Mbulawa. And for all you sceptics and cynics, Consider that the opening part of the article says that the stability is due to the copper prices which Zambia does not have a strong influence on. So if it pleases you the economy is mainly growing due to external factors. ( damn I am sure that gives a sigh of relief to all MMD haters)

  10. Nothing against the positivite development behind these figures but we need to see and feel the effects of this economic growth sooner or later. Locally, nothing has changed and on the international ratings Zambia still lags behind most African countries like Namibia, Botswana and even post-war Angola.

  11. Well nine chale, Botswana’a GDP per capita is way ahead of ours so we would need probably a decade to get their level. As for Angola, we compete favorably in many areas. Andi dissagree that we have not made progress on international ratings actually we have. You also say nothing has changed, a lot has, the Arcades, Lumwana mine , Chambeshi Copper smelter, Zambeef, tourist arrivals etc. Even just the growth of our major cities

  12. Money printing gives an illusion of being richer whilst all we have are pieces of paper with more zeros on them. But there is one currency that government can’t print which is gold. Gold has been real money for almost 5,000 years and it is the only currency that has survived throughout history. Gold can’t be printed and no government controls it. Therefore gold will, over time, always reveal governments’ fraudulent actions in creating money out of thin air. And this is what we are experiencing currently. Gold is not going up. Instead gold is doing what it has always done, namely maintaining its value and purchasing power.

  13. Is this value of the Kwacha that is being appreciated here real or speculative?? And how does it translate into affecting the net price of goods and services for the poor?

  14. if this is true (which i doubt) then i suppose every minister and GRZ officials will be getting a fat bonus and the ordinary zambian gets nothing but yarah yarah yarah talk with no fruits. what a load of human c.r.a.p

  15. I mean if the Zambian economy is looking good cant something like houses, roads, etc be built just to improve the standards of living of ordinary zambians??? GRZ please learn to give back to your people

  16. Let us get to the real issue, which is that you want to remove RB from office no matter what the facts of GDP growth on the ground are. Just relax, you are a sovereign people and you can remove Rupiah and MMD from office and you don’t have to give any reasons. This is your right. There is every evidence if you live in Zambia that the economy is growing and affecting many people. Today a self employed carpenter came to my home to fit a kitchen and he was driving and it was a good car and it was his. He was a common man. I understood why the traffic jams have become such a nuisance on the roads. So go ahead and remove Banda from office but don’t tell lies about him just like Fred Mmembe who has an axe to grind over his Zambian Airways.

  17. #8 Positivist people have been building and amassing wealth way before we were hearing these pronouncements about GDP growth and all the drivel they feed us everyday,you putting it as if all the developments that are and been happening are as a result of RB, the mines you are talking about were there and went through very rough tides when copper prices went down.You are talking about Zambia rating higher on the intl scene,give us some well researched examples,the only rating i know of is that of FIFA rankings,which came after qualifying for the AFCON,you talk about the economy growing through external factors, please elaborate

  18. #11. Positivist pa Zed. You would convince me if you were to show me the growth figures of Zambia’s GDP in the first six months of this year. So exactly where are the growth figures? And what was Zambia’s GDP as of June 30 2009; links please.? I hate shallow arguments based on assertions.

  19. I may not be an economist but i think there is nothing or anything to celebrate about these figures aslong as my humble uncle in nabwalya,my unty in shangombo,my grandfather in kaputa and my cousin in umwisho continue living on less than a dollar a day budget.

  20. I wonder what the opposition’s take is on these figures or are they too busy hurling insults at the govt to have time to critique the figures and come up with alternative policies regarding the economy?

  21. Smooth criminal # 20. You are not being fed any figures . GDP growth is an aceptable and conventional for caculating performance. Under the figures lies more details, but a gowing economy is indeed one where GDP is increasing.And I am not saying these developments are due to MMD or Rupiah. Figures actually show that the major contributors to growth are the mines and agriculture. Now you can not deny that Government policy does influence how sectors operate. An example is Lumwana mine, which was and I believe still is the biggestsingle mining project in Africa. Now no one will invest money (700 million dollars) in such a project if they believe that the enviriment where they operate will not ensure an acceptable return

  22. Let this wealth trickle to the community. Increase the wages of doctors, nurses and teachers.Surely, these hardworking sectors deserve recognition in Zambia. They pay tax , spend money IN Zambia and make a difference in Zambians livelihood. At least it is a practical step to show Zambia’s economy is a benefit to it’s local Zambian people.

  23. So many scpeptics and critics on this blog. May be we should try to understand what it takes to develop a country. GDP is an indicator, but it is only one of the ingredients to economic development. The economy has to grow to have capacity to generate jobs. You dont start with jobs, what would you pay the workers. Lets understand these things. I am no economist.

    Good news that our economy is growing. Now let’s find ways to trickle that growth down to the man on the street. It’s a good start. If the economy is not growing, you cant even start talking about jobs and salary increases.

    Let’s be thankful even for the little things. Uushitasha mutunono, namufingi mwine takatasha.

  24. Now government will aim to create a conducive enviroment that will ensure FDI flows in. You might just say why not use our own resources. My answer would be ask Kaunda about his failed growth from own resources. I will bring up some ratings but I do know that the TIZ corruption index has shown that Zambia has made improvements. And recently I came across a report from Standard Chatered Bank that rated Zambia , Botswana and Ghana as among the best investment destinations In Africa. The world bank and IMF have also noted that Zambia is not among the countries that has slipped back into the debt trap as result of the economic crisis. Our reserves are at the highest in may years.

  25. yarah yarah yarah thats you people. very good at analysing things on paper napa kanwa but properly implimenting them and acting on positive out comes…..awe sure mutumbulafye ifimenso no tufumo kwati niba tobolilo

  26. On the external forces that influence growth,Thats so simple!! whenever copper prices increase, revenue goes up,and the countries economy experinces growth. Ask the so called mine suppliers and they will explain how they are affected by the price of copper. On the building of houses or simply put construction , this sector has grown very remarkably over the years that GDP has been growing. This can be reflected in the rising prices of houses and indeed land . Or simply go to Solwezi, Livingstone and compare it to the same Solwezi or livingstone of ten years ago.

  27. Zambia is losing good Zambian teachers , doctors, nurses to our neighboring countries because of wages …just like the only national airline Zambia Airways slipped from Zambia’s fingers. Our standards in education is also slipping. The economic growth sounds good for the financial industry in Zambia. Long term , it can only work if there is an investment in the workers that provide education and health sector.

  28. Now on MMD and Rupiah, well all these changes happen under a Government, so if you are to blame them for whats going wrong then you should also commend them for what is going right. \and i must say i am the first to say that this does not mean that things could not have been better,but that means thsy could also be worse. So stop being septical. Why should good news annoy you,

  29. Zambia’s GDP (at Purchasing Power Parity)
    $17.54 billion (2008 est.)
    country comparison to the world: 129
    $16.55 billion (2007 est.)
    $15.58 billion (2006 est.)
    Zambias GDP (at official exchange rate)
    $14.65 billion (2008 est.)
    Zambias GDP real growth rates
    6% (2008 est.)
    country comparison to the world: 60
    6.2% (2007 est.)
    6.2% (2006 est.)
    note: data are in 2008 US dollars

  30. #24 Positivist, GDP is based on figures,show us the real figures,and show us where it is documented that zambia is ranking high on the intl scene,otherwise i will take it as your usual hallucinations,and point of correction,Lumwana is not the biggest copper mining project in Africa,mgt just said they plan to make it the biggest in southern africa,the biggest copper project is in Mpumalanga under Palabora Copper mine being run by Anglo america,2nd is AK06 in Botswana,Esakane,Nkamouna in Uganda,Passendro copper project,Lumwana is not even on top 10,now give us some links and figures to support your claims or forever hold your piece,you came across a report from stanchart,bring it on,its so simple,just cut and paste,reports from IMF and world bank,surely they must have links,argue with facts

  31. #32 Ricky Bobby thanks for that data,thats what positivist fails to do
    2006/2007 we were stuck at 6.2%, 2008 went down to 6% flat,meanwhile,i quote
    …”And BoZ has projected a gross domestic product (GDP) growth rate of 6.3 percent to be achieved by the end of this year.” This does not mean that we have archived it yet,its just a projection, a goal that BOZ will try to archieve,so what you are saying if we are to go by this data is cack,infact according to this data we were better off in 2006/2007 than we are at the moment.now give us links twapapata we munthu wa kwa lesa

  32. Our reactions just depict our levels of ignorance…actually recently in the Post Newspaper, some reporter wrote that the Kwacha had depreciated by 40%….mistaking this with 40 basis points. Its sad to see such…esp when these stories are reviewed by learned editors.

    GDP in Zambia has grown because of many visible reasons…the new mines are producing and old ones have increased production. we are also prpocessing ore from DRC. we have more farms and more irrigation… Zamanita is producing almost evrything they can…plastic tanks’re now 90% locally produced not imported. Infact we also’ve more Banks hence more jobs or even better the few bankers have higher pays.
    The ordinary Zambian whose life has improved is the one who gets a job or pay rise. the tax benefit-afta abt 1 yr by…

  33. Dont expose your ignorance on the web with fake identities…befor eyou make comments or post things think about what you are talking about….Chilanga cement has now the Tukule plant running – high production. Zambia Sugar recently acquired huge financing for its expansion programme which is underway – more production. This is where GDP growth comes from.

    Like smoothcriminal says GDP growth has nothing to do with poverty, at least in the short-run. Leave politics out of economins & development. Actaully we are better off than the rest of the world this time around – most economies are in recession – negative growth. Had it not been for the crisis we’d have recoreded a record growth rate. Probably in the double digits…the Manda hill expansions…crooss roads all these are additions

  34. Infact part of the growth comes from the few Zambians who are investing in the real sector small holdings & hosuing. Whenever one chooses to build a house/spend on the small farm, such funds attain the term invesment rather than consumptioon. This adds to GDP growth. They buy of Chilanga cement boosting local production & they increase the number of acceptable hosuing units in Zed.

    The growth of Zambia lies also within our hands, reduce your weekend boozing & spend more on blocks & cement…spoend time at your small holding and plant fruit trees there, esp in this season. All such will add to GDP.

    At least there is a good no. of our citizens engagnging in such…this is the beginning of change. And you’ll be left behind if you don’t join in…time to cash in is coming. Get land…

  35. Yeah yeah informer. Lets get the best out of this economy, whether we agree with leadership or not. I have realised that this country may never have the leader I want. And anyway who am I just one of the 12 million Zambians. Nut that does not mean i cant work to better myself and while at it the country

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