Weakened Kwacha affecting business – PSDA

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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.
[QFM]

8 COMMENTS

  1. This will never work as long as we have ukwanomics…
    lets start using US Dollar as our currency like in zimbabwe ….chapwa.

  2. Don’t talk about the US$178 million that has had NO positive impact on the exchange rate thus far! Concentrate on reducing political risk; stop deportations of CEOs of Multinational Firms; Respect the Rule of Law; avoid giving the impression that there is a looming constitutional crisis and indeed reverse the ill-thought SI33 and SI55; the exchange rate will normalize!

  3. We can beat about the bush the way we want. The major factor of this mess is the credibility and competence of this government. Really how can you trivialise national issues by asking technocrats to craft statements and send them the George chellahs black berry.

  4. Now the jobs will decline if the issue of economic policies is not well addressed. PF you need to recruit true thinkers in your ranks and file while getting raid of yesteryears economists like MoF head. Look beyond your tribal comfort-zone for solutions, wise people say just take the advice or idea and do not mind the source of the advice or idea as long as it is a good one.

  5. Bloomberg reports today that the Zambian Kwacha, like nearly all African currencies may continue to depreciate for a while due mainly to a strong US Dollar and due to the decline in Chinese manufacturing. For example, the South African rand has recorded the sharpest decline of Rand from R8.00 to R13.00 to a Dollar in just five years.

    What should concern us is to examine the long term impact of the weak Zambian Kwacha against strong currencies on the economy as some of the effects could be positive.

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