GOVERNMENT is soon expected to introduce a statutory instrument (SI) that will allow transacting in United States dollar at Kasumbalesa border to channel about US$40,000 from the black market into the formal system.
Minister of Finance Felix Mutati said in an interview recently that once introduced, the SI will enable traders in the border area between Zambia and the Democratic Republic of Congo (DRC) transact in dollars to prevent the illegal or parallel market in foreign exchange.
“Zambeef [Products] has an outlet at Kasumbalesa border and the challenge is that under the current law, they are not allowed to transact in dollars, so the buyers from DRC have to change money from the black market with US$30,000 to US$40,000 being sold on the market daily,” he said.
Mr Mutati said the market at Kasumbalesa has capacity to transact in huge amounts thus the need to ensure that the dollar on the black market is captured in the formal system.
He said the move will boost sales for Zambian businesses operating in the area.
Mr Mutati said the development will also increase foreign exchange channelled into the formal system and boost the country’s revenue.
He said the DRC market remains one of Zambia’s largest markets and ensuring that trade is facilitated smoothly will go a long way in growing the market further.
“As we plan to increase revenue as one of the measures of growing the economy, we need to facilitate smooth trade and introducing the SI that will allow the transaction of dollar in the border area, particularly Kasumbalesa,” he said.