International Trade Consultant says the current economic problems facing Zambia today have not been caused by Chinese economic turmoil.
Mr Simumba charged that Zambia’s economic challenges have been brought about because of excessive borrowing and a huge budget deficit.
In an interview, Mr Simumba said the Chinese economic downturn will only add to the existing problems ravaging the Zambian economy.
“We should be very careful here, the current problems affecting Zambia have not been caused by the Chinese downturn, it is going to add to the factors affecting our economy. The main factors are that we have been running a huge budget deficit and too much borrowing,” Mr Simumba said.
Mr Simumba predicted that the impact on the Zambian economy from the Chinese downturn will be severe.
“The impact that is going to come as a result of the current Chinese downturn is going to be great because moist of our copper goes to China, so the demand for cooper will be low which will even lower the copper prices further on the international market and we will see a further Kwacha depreciation,” Mr Simumba said.