IT is wrong to insinuate that the Zambian economy has collapsed as there is no way it can breakdown when it still has great unexploited potential for economic growth, says Bank of Zambia (BoZ) governor Denny Kalyalya.
Dr Kalyalya said in an interview that the Zambian economy would only collapse if nothing was done to exploit the available potential in different economic sectors.
He said it was impossible for the economy to collapse when the country was still recording economic growth even if it was slow.
“Those who are speaking positively about the economy should continue being optimistic because this economy has not collapsed; we are still talking of growth and, yes, it’s low growth but it is growth nonetheless,” Dr Kalyalya said.
He said there were unexploited potential in economic sectors such as agriculture and energy which when exploited would bring about economic growth.
“But I think there are still opportunities within what is happening; we still have unexploited areas when we talk of agriculture, agro- industry.
“And we have to go beyond maize in agriculture; there are other things such as livestock and fisheries, all these are areas where Zambians can do a lot better,” Dr Kalyalya said.
He said Zambia boasts of having 40 percent of the water in the sub-Saharan region and yet it was not being utilized in the energy sector.
Dr Kalyalya said Zambia had to learn from other countries which depended on one river and yet they were performing a lot better in the energy sector because they exploited the available opportunities.
“Talk of energy, we boast of having 40 percent of the water resources. There are countries depending on one river and they are doing a lot better, why? So I think we can take lessons from that.
“What I am saying is that the economy will collapse if we all do not do anything about it but I can assure you that with these challenges, a lot better can come out of it but we have to seize those opportunities,” he said.
Dr Kalyalya said there was need to be fully focused and apply the knowledge on the many opportunities Zambia had to grow the economy.
He was optimistic that something better could come out of the current economic challenges.
Meanwhile, Dr Kalyalya said BoZ was aware of shopping malls which were charging customers in the United States dollars and that the central bank would soon visit them to understand their reasons because their actions were not helping banks’ efforts to stabalise the kwacha.
He said the actions by some people who charged in dollars contributed to the depreciation of the kwacha.
“We will pay those colleagues a visit to understand why they are doing that because they should also help us to bring that stability because if we become stable, there will be no need for that.
‘‘This is not helping the efforts to get the stability that we are looking for in the economy.
“I can assure you that if tomorrow the kwacha appreciated they will dump (the dollar) again and go back to the other side. You can’t always be on the winning side, so please this is a matter which is important to the economy,” he said.
I like the positive in the tone, but the problem is the drunk & his crop of leaders lack the stewardship required to motivate the citizenry into unraveling the existing potential.
We need a leadership that will create the enabling environment in which we can all participate in wealth creation for the nation.
There are certain issues that Latin language lable “Res ipsa loquitur’. The thing speaks for itself. Dr. Kalyalya or anybody else for that matter need not translate. Citizens can see what has happened to their economy.
Kalyalya has admitted that his cronies in government have failed to tap into the immense potential that Zambia has to grow the economy.
Its every one ‘s knowledge that Zambia and indeed most African countries are well endowed with vast resources. But the problem is that on mismanagement by the corrupt African leaders who have made politics a career to become rich on the back of the poor tax payers.
On other hand kalyalya is pandering to his PF cronies by denying the obvious using semantics as his refuge. The word collapse means something has gone down. It does no matter by how much it has gone down by, the fact remains its down from where it was and supposed to be.
In this case its a fact Zambian economy has collapsed to levels where the majority of middle class that existed during…
relegated to lower class; no doubt about that.
For the Zambian economy to be revived please vote UPND in 2016. Otherwise Zambia risks being worse than Zimbabwe.
Actually the economy is inflated.
Dr. Kalyalya is simply saying that PF has failed and that it has no vision to tap into what we have. Read between lines. This man, or any other person in his position, would have been effective had he been working with people with understanding and knowledge.
Kalyalya has even made the economy worse.
…………..but we have to seize those opportunities,”
In the above portion of the statement lies everything in our economy. Who is to seize the opportunities in Agriculture and the industries which stem thereof? PF in its current format and school of thinking it is impossible for that to happen. We still have Kambwili who believes a head of state can travel at any cost his so wishes to.
On charging in dollars, business is all about surviving and making a profit, unless you want them to close shops, which will have a dare impact on this economy.
But it’s true , your boss has failed the economy . Have you started paying back your euro bonds yet ? This are getting more worse soon .
Dr Kalyalya, the issue here is not that the economy has growth, but HOW MUCH GROWTH. We have a huge growth in population and millions of youths that are in need of jobs. Will current growth provide this for them?
Collapse is relative. Clearly, the Zimbabwe Dollar COLLAPSED. Our Kwacha has lost value from being K5 to the Dollar to now being K13 to the Dollar. Must we wait until it is a hundred billion Kwacha to the Dollar before we admit that it has COLLAPSED?????
I sympathize with your predicament, and understand the pressure you are under. But we must be realistic and call a spade a spade. The economy of Zambia is headed in the wrong direction and these are the indisputable indicators that we are going downhill FAST!
Rather that make public statements about the “potential” you…
Rather that make public statements about the “potential” you should be telling Lungu and his gang how to reverse this devastating trend by not making dumb pronouncements that scare away investments and demonstrate their total ignorance of economic reality.
Then things may start changing for the better.
yes economies do collapse,he said unexploited economic sectors,jesus answered such kind of statement in the parable of the talents,mathew 25,vs 14-30.having abundance of un utilized wealthy does not translate into being wealthy.yes the zambian economy is on the brick of collapsing.
Mr. Kalyalya, I know you to be a very honest man and our friendship date back to 1988 when we were in Grade 7 and you had fallen in love with my best friend Vera Musonda. And I know that you have never told lies in your life. But now, I am 100% disappointed with you for trying to tell lies on the Zambian Kwacha despite all your instincts not agreeing with you.
The truth of the matter is that the Zambian kwacha my brother is the worst performing currency in the world if you did not know. Again, I dont blame you for that, but I blame your long time friend Edgar Lungu for failing the Zambian People through his economic mismanagement. Zambians have suffered so much since the sad demise of President Sata. And for your own information Mr. Kalyalya, Edgar Lungu is the worst head of state in…
@Hildah, you started falling in love in grade 7? Of is that you are now trying to bring up child abuse cases against Kalyalya?
Lets stick to the worst ever Zambian Kwacha. $1 = K13,500. That looks like BoZ has no governor, what is governing? Mines are laying off workers and shutting down, then shut down that BoZ too, shut it!
Go buy pads
what is this guy taking about kanshi…there is no one insinuating…its da situation which is insinuating…all economic indicators are pointing downwards….he should take time off the computer which is feeding him with theoretical situation….he hardly remembers when last he held a Kwacha note in his hands because he always deals with Dollars….last year October, my brother paid K36 000 landed cost for a corolla he ordered from japan……he has just coughed out K59 000 for a similar car…
…similar car but less FOB…..
Semantics, semantics. Collapsed, broken, fallen, flopped, sunk, ruined, smashed, cracked, wrecked… it’s all the same.
Zambia is a dead affair.
I thought Mr Kalyalya was a an honest man! Alas!
I hope he has been misquoted, if not then he is a big foool! Insinuating my foot!
Just to show you how corrupt PF and their suppoters are, they are signing of youth empowerment. They are importing those 2000 hammer Mills, instead of impowering the many jobless youth to form companies to install and maintain those mills, they have shared the contracts among them selves or are using Chinese companies for bribes. This is why the wealth of the country is shared among PF and foreigners. Poor zambians who are not related have no chance. Shame on you all.
KALYALYA. Zambian economy has not collapsed it’s dead.
Lungu collapsed and got up but Zambian economy might not get up
This is what happens to an honest educated man when he works with dumb leaders, am of the belief he was told to say these statements by his clueless boss.
The Dr is right, the currency alone is not a single sign of collapsed economy but an indication of quality and symptoms of the Financial system The Zambian economy is full of potential GDP sectorial Just look at the sectorial gap between the huge potential and real GDP It and if exploited it will show on Zambia’s Accounts
When you look at the policy rate increase, you need to see potential in that and not be limited to one single asset class in the currency like kwacha
When you look at the policy stance or stringency actions by Look at the policy rate increase at the current state of the Zambia economy and align well your portfolio’s In a small way you can effect…
Jonathan what is all this graffiti, are you looking for a job at bankrupt BoZ
effect desirable rates form Dr Take for instance investing in commodities away from currencies ,there could be some substantial return in those sectors in these Dr Kalyas rate hikes with future value Dr will react rates to your benefit
Zambia is too big to fail it’s the mind-set that has to change in line with comments from Dr
If you hold a well diversified portfolios in small way at community level in humble investments say 40% equities, 20% bonds, and 20% commodities other 20 % alternatives This is no like bill gates or warren but poor risk averse Zambian You will move those period and navigates through the rates times of DR Kalya
There will be no time when it will be utopia with the rooming rates hike again by the FEDS
HONESTLY SPEAKING I AM VERY DISMAYED WITH YOU CLAIM. YOU ARE TALKING LIKE A GRADE NINE FROM COPPERSTONE UNIVERSITY. IT IS AN OPEN SECRET THAT THE ECONOMY HAS UNDOUBTEDLY COLLAPSED. IT SHAMEFUL THAT AT YOUR LEVEL YOU SHOULD ADOPT THE BEHAVIOUR OF KAPONYA POLITICIANS IN PF. I PRAY YOU TO MAINTAIN YOUR PROFESSIONALISM AND INTEGRITY EVEN AT THE EXPENSE OF LOSING YOUR JOB. YOU’RE NOT A KAINGU OR A KAMBWILI.
@ MANOMAMBULWA
Sorry, but you are wrong.
Our dear Doctor has traded his moral integrity for 30 pieces of silver and his knowledge for the peripheral benefits of political power. Patient is no more in ICU, it has been preserved in liquefied nitrogen for post 2016 government to find solution.
So some people are saying Zambia’s economy is “looking up”. But that’s only because its lying flat on its back.
Very funny!
Village kaponyas and political jokesters teaching us and stewarding Zambia’s economy ?
Bwana Lungu and Kalwalya,you’re D minus students and thus can never be the best stewards for a successful economy.
Ok Bwana Kalyalya,its true the economy has collapsed bcoz Zesco is in ICU,we have no airline,ZR is on life support,GDP growth is trending down and control of the big industries is in the hands of foreigners.
With all of the above ,Can’t you see the economy of the poor Zambian has indeed collapsed? We’ll never have a successful economy if we keep being a country of employees rather than one of entrepreneurs.
If you read well ad note the decisions being made by Dr Kalya Kalyas, there is soundness but like everything else in Zambia there has to be some long-term view in compliment with wina ministry at Finance
Good thinking on rates keep it up You prevented much
UPND your little “god” HH has indockrinated u to his Satanic nd false economic theories,such that u can’t even listen to people who re more educated than your god(hh).Keep on insulting nd despising everyone nd remain in the opposition for eternity.Come next year little god is getting another thumping.
Comment by 1mbecile for 1mbeciles. Carry on
Can we partner with sadc, au, etc to agree to build the biggest baddest hydro power in Africa and diatrbute the power to the whole of Africa cheaply. Power is one of Africa’s problems. The other being lawlessness.
Solve for power, and boost the economy.
“… I can assure you that if tomorrow the kwacha appreciated they will dump (the dollar) again and go back to the other side….”
Dr Kalyalya, I can also assure you, and in plain English, that “IF” current administration does not make U-Turn to day and stop borrowing in order to satisfy personal greed, your “IF” related to kwacha will remain only a wet dream.
Instead, how about “IF” BoZ start SERIOUSLY considering NEEDS of local SME instead of NEEDS of bankers and bloated government. What about instead of raising interest rates to curb inflation, you DO address source of the inflation? Which one is better Doctor?
Dr Kalyalya, “IF” you had courage and freedom to act, what was going to be your first action?
Lots of “IF” but zero “MUST”.
BOZ should also visit companies on CB paying salaries in US dollars
Am dismayed that the Dr. for that matter could insinuate that the economy has not collapsed or is not collapsing,well then tell us, what is it? upright or doing fine? All variables and economic indicators are nose diving i.e the currency has lost value, inflation has doubled, lending rates have increased, there are budget overruns or over expenditure , electricity tariffs are beyond reach, load shading or so called premium rates, our balance of payments is negative etc and this governor sees the opposite or is he drunk that he cannot decipher properly?
Someone once said that there are ignorant educated people , I bet this sits well with this governor who is a let down, you cannot compare to Fundanga, patali sana. Nonsense.
unexploited potential is like a grave yard so rich in talent and knowledge but not beneficial. How many times have we heard the song … Zambia has potential in blah blah blah! ….but what do we have to show for it?
those in leadership have messed us up. Perhaps the Dr. Kalyalya home economy has not collapsed, but mine and many Zambian’s economy has hit rock bottom.
You talk of diversification when the income from copper is at its lowest instead of diversifying when the income is good. Poor leadership..
Dr. Kalyalya is beginning to lie for expediency. The truth speaks for itself: THE ZAMBIAN ECONOMY, UNDER PF, HAS COMPLETELY COLLAPSED AND WE ARE FEELING IT. If this statement is from Dr Kalyalya then something has gone wrong with him!
The economy will greatly improve to the amazement of all critics, am telling you. get it from me, i am giving you 4 months, by the 6 month form now, some exporters will be complaining becauce the kwacha will gain so much value. be assured, you shall see
You are not a serious Zambian! How does the Kwacha improve when the measures put in place by BOZ can not be followed? For instance, does the government need to build a church? The idea here is to blind fold the Zambian people that your leadership is Holy and therefore let us keep them in power. Please if you have failed to govern do not use the name of the Lord in vain. We all know historically that religion is the opium of the mind…….no continue suffering for your kingdom is waiting for you in heaven.
@ zed mix for now i will look a fool but wait comrade, you will be shocked, just april 2016. i will remind you, if i forget remind me. i have spoken
Useless Governor. Why don’t you put in measures to avoid inside trading in the interbank market. Shame on you Mr. Dullard Governor
Ba Governor, It is wrong to take that path……You are doing very well from the Monetary point of view but we are almost out and done with the fiscal part of the equation. You can not say things are under control when the politician are travelling left right and center and hence the Dollars going out all the time. This balance requires commitment from the politicians, not these guys who are only there for themselves……….personal benefits not patriotic approach. We shall not bring the Kwacha back to K4.50 for as long as we continue being cheated. When are the 500 000 jobs going to be created? This lie has gone just like the “more money in the pocket” lie. Please next lie!!!!!!!! Zambians have a very short memory and easy to cheat and manipulate………Shame indeed.
Ba Governor,with due respect,don’t talk as you once sat in group 3,ku primary those days.
“as if”
its was le a lid on the pot I am sure he is also wiser to look at the Inter Bank rate simultaneously He has arrest and prevented further movements mainly being moved by feelings of people in complex Zambia capital and financial system That has little divesty ,very little interaction often single asset class focus ,with little adaptive and connectedness
Its all about creating that desired confidence in the Kwacha and local financial system just like the Dollar has always been said more than ever to be collapsing from multiple reserves currencies but still emerges stronger to remain the GOLD Standard keeping qualities money in global sense
Its also about CONFDENCE an creating that good confidence in the KWACHA as a store value medium of exchange and unit of account What the Good Governor did was put a lid and manage the stance and stringency in the interbank and interest rates and carefully I am sure with the fiscal side change the course of rates down wards
There are currency wars amongst the top 5 global with threats of those currencies collapsing against each other but the do not say their economies collapsed Its a continuous watch over
If others appear to dampen the CONDENCY in the Currency Create your own There one currency that basically no fundamentals or backed by huge amounts of reserves but because of confidence in it seemly have more face value that our copper kwacha
Dr Kalyalya, I am sure you are now regretting for having been recalled from your IMF position where you operated free from political influence piled on you. Welcome to the real Zambian world where you are forced to issue statements stuffed into you by the appointing authority and his gang much against your conscience. They will finish you off and then unceremoniously fire you. Zambians are not blind or stupid, they can see lots of inconsistencies in your waffles. Anyway good luck to you.
I hope you have also read and looked at the bank of England recent reaction to escalating prices of homes He did not sit idle with his committee ,they put a lid just Dr Kalyalya has done They thought about the potential financial instability of the rise in the housing and what options available in macro prudential considerations to recover and establish price stability in the Financial system they have not said the Housing economy in the UK has collapsed on the contrary They still maintain the Confidence and keep the pound sterling
My be the suggestion is to increase dimension and oversight to restructure and consolidate and increase numbers of representation on the RATES committee to ensure complete views on monetary and fiscal though at the moment there are representation appears on monetary and fiscal the thinking is to review the structure and consolidate to increase the Mix in and compositions in view of multiple economic variables affecting Z
Jonathan! You need to have your psychiatrist review your medications. You have my sympathy
Just who the **** is this janathamhango financial analyst? I cant decipher a single thing that you writing here, are you not just one of those PF vuvuzelas, your English is out of this world, analyst? No wonder things a like this IKALEMNIFYE TATA UKUCHILA IFWAKUBWATABWATA.
Just who the YELL is this janathamhango financial analyst? I cant decipher a single thing that you writing here, are you not just one of those PF vuvuzelas, your English is out of this world, analyst? No wonder things a like this IKALEMNIFYE TATA UKUCHILA IFWAKUBWATABWATA.
Another failed economist from copper-stone university.
@Jonathamhango Financial Analyst , Having said all that you have said, WHAT ARE YOU SAYING?
Dr Kalyalya, please don’t be a mouth piece of these pathetic liers. You are too educated for that. Lungu must go!!!!!
First of all, what makes people think that hh can run the economy of Zambia well ! When you can’t paid your farm workers well ! Greedy, Freemasonry, pride,arrogance, the tribal tag,no humbleness etc….Zambia is full of lazy people,just wanting to be given things for free.Our work culture in Zambia its bad very bad. For those of us who travel and iam sure some of you , who have been to south Africa will agree, even in that country things are bad…
What makes you think hh can change things !
Someone has said “A predicted global meltdown passed without event. But there are enough warning signs to suggest we are sleepwalking into another disaster”. Many indicators in global finance are pointing downwards – and some even think the crash has begun. Look at the price of real things. Oil collapsed first, in mid 2014, falling from $110 a barrel to $49 now, despite a slight rebound in the interim. Next came commodities. Copper cost $4.50 a pound in 2011, but was half that in September. China – the engine of the post-2009 global recovery – is slowing markedly. Japan just revised its growth projections down, despite being in the middle of a massive money-printing programme. The eurozone is stagnant. In the US, growth, which recovered well under QE, has faltered after the withdrawal…
The next giant financial crash already begun! And Zambia is not spared bane…not even HH can save us.
You may be right. No one knows if HH will be able to stop decline. But, one thing is sure 100%, current administration DOES NOT HAVE CLUE what to do!!!
Shall we carry on in darkness on the flicker of imported candles?
As to your “global economical analysis”, please, try to connect the dots that can make sense. As it stands, you think that Zambia is a economical center of the world?
Be serious.
By the way, do you know any other central bank which hikes borrowing rates to “stimulate local economy growth”?
The U.S. economy added 271,000 jobs in October, and strong hiring drove unemployment down to 5%.
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Beer, kachasu and Republican Presidency are not the best of friends. The results are showing.
Please try to look for a more fitting adjective. “INSINUATE” is clearly a wrong one here. Zambia’s economy is a graveyard story.
Upnd and all your cronies should know that BOZ compiles and prepare the annual economic report for the country. So Dan knows what he is talking about when he says the economy has not collapsed. I thot yo HH was an economist why does he pretends. Who are you fooling. This is why some of you will never rule this country come what may