The Private Sector Development Association (PSDA) says the continued depreciation of will negatively affect the cost of doing business in the country.
PSDA Chairperson Yusuf Dodia said in terms of trade, the demand for exports will drop as the input costs of labour and other factors of production will rise which will in turn increase the cost of exports thereby affecting their competitiveness.
He said the Kwacha’s loss of value over the past few months has a negative effect on trade and tax revenue the private sector contributes to the government.
Mr. Dodia however notds that the move by the central bank to offload US$178 million onto the market to shore up the value of the Kwacha will help make imports much cheaper especially that Zambia is an intensive import country.
He has further urged government to quickly come up with policy measures that will help stabilize the kwacha in the long term, stating that many local producers are already finding it difficult and expensive to conduct business.