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.
ZAMBABWE!!!!!!!!!!!!!!!!!!!!!!!!
I think it is worth trying in order to see how it will help boost our local economy
Small thinking by this Finance Minister!
International trade does not only happen at border posts! It happens everywhere. So the only logical conclusion is to do the same for the whole of Zambia.
Go back and re-think this dumb proposal!
@DUNUNARD, truly we are Zim number 2. From Kasumbalesa to the rest of Zambia. Hotels real estate saw this need for stable dollar deals long time ago because of PF’s inability to manage the economy. let PF cadres start dancing for the dollar
Come on Felix… What are you doing?
ping pong
No need for si but reduce costs of currency business licensing and compliance requirements.
This is great Mr Finance minister,keep it up,as an economist both local and international,you are in the right direction.
Just open it up let those who trade in dollar trade in dollar.
ALSO SCHOOL SHOULD BE PAYING THE FEES IN DOLLARS INCLUDING EXAM FEES! DULL MINISTER
Luke! Mutati is not an economist, “I had passed the ACCA exams and could hold my head high,” he explains. After spells as a management accountant and finance manager, Felix rose to become Finance Director of the National Hotels Development Corporation” Second the last time I checked Zambia’s legal tender is kwacha. If you care to read there are tons and tons of literature on dollarization of an economy and the devastating effects it can have. Parallel currencies also effect inflation etc. soon everyone will cry we want in, tourism industry, trade etc. will all have he same demand…dollars…black marketeering is a crime deal with it don’t court it….