Wednesday, February 28, 2024

President Lungu extends Kalyalya’s contract as Central Bank Governor


Denny Kalyalya could become Zambia’s second-longest serving central-bank governor after his contract was extended for five years.

President Edgar Lungu renewed the contract effective February, the Bank of Zambia said in a statement.

The contract renewal will see Dr. Kalyalya, who was first appointed in 2015, oversee the nation’s monetary policy until at least 2023.

The only other governor to serve longer was Caleb Fundanga between 2002 and 2011.

Bloomberg reports that investors will probably welcome the move as Dr. Kalyalya was seen as a steadying hand at the central bank, not afraid to criticize the government’s loose fiscal policies at times.

He led the institution through one of the most turbulent economic periods in the country’s history after a power crisis and a collapse in copper prices prompted Zambia’s currency to drop by around 50 percent the year he took over from Michael Gondwe.

Economic growth slowed to 2.9 percent, the lowest this millennium, and inflation raced to more than 20 percent.

Dr. Kalyalya’s monetary policy committee responded by raising the central bank’s key lending rate to 15.5 percent, and held it there until early last year before cutting as inflation slowed to 6.1 by December. Price growth quickened to 7.4 percent in April, the same level as when Kalyalya was first appointed, and the MPC kept its benchmark rate at a four-year low of 9.75 percent this week.

One of Kalyalya’s key challenges will be increasing international reserves, which have dropped to $1.8 billion, the lowest in almost eight years, as the government grapples with increasing costs to service ballooning external debt.

Zambia’s kwacha has depreciated 2.1 percent against the dollar this year, and was at 10.185 by 7:44 a.m. in Lusaka Friday.


    • Congratulation Doc. this shows that President Lungu is not against those who criticize him in a right way but maybe those who insult him wrongly.

    • Excellent ECL, please follow the instinct that guided you on this score when making similar critical national decisions. This decision is like a breath of fresh air after the spate of scandals and nauseating responses by your gov’t, lately.

    • Mushota be PhD holder just two word instead of us hearing the microeconomic benefits of decisions inluenced by continuity! These days, a BB blogger would perform better if they would use their acquired skills my efficiently! Anyway If we are to sustain all this progress, our economy requires sound monetary policy and prudent oversight. In fact, We need strong and steady leadership at BoZ and I hope Kalyalya will provide exactly that. Imagine having Mushota as Bank of Zambia Governor! Yaba!

  1. So you will hear tu UPND ati we have renewed the contract for Hechi Hechi bcoz government did the same for Kalyalya. I await comment from the cow dung infested party who transmitted sleeping sickness to the late Lusaka mayor through tsetse flies when he was inspecting an abattoir in Kanyama…..

    • @3.0 ******* **** do you know how sleeping sickness is transmitted? Do you really understand the seriousness of this disease or are you just mocking the late Kalumba?

    • Eishhhhhhhhhhh! The late Lusaka mayor was already sick by the time he was being elected just like the late Sata.He was also already sick by the time we were voting for him. Keep quiet when you do not have anything sensible to say.

  2. Congratulations Dr Kalyalya! This is good for the country for the sake of continuity and consolidation of both fiscal and monetary stability the country has recorded. Dr Kalyalya is among the top brains this country can boast of.

  3. Reserves are at $1.8 billion , were they not at $3 billion ?

    So on top of borrowing, getting kickbacks from inyati , They have also been dipping into the reserves ???

  4. He has no choice but to extend his contract in order to fund Swaziland project.

    If u vote for PF it means u have agreed that Lungu should build the house in Swaziland. If you vote for UPND it means u agree with prostitution and offshore Accounts of HH. The choice is yours to make guys

  5. Congrats, my only concern are the reserves, how have we reached this low US1.8 billion for an economy like ours? This should be the lowest in emerging economies and the region? This definitely calls for serious concern, otherwise we are in deep trouble. This value is not good at all and needs to be propped up. This is the first time that we have head about the correct figure of our reserves.There is also need to disclose the true value of our debt which in my view is extremely worrying. Otherwise he is a seasoned professional who has done a good job so far.

  6. The reappointment of the Governor is very very Good He has fairly performed looking at the economy and outlook for the regions
    The Kwacha has remained stable trading around ZMK 9.78 to the USD slightly up by 2% this year Yields on Bonds though have not been forth coming performance here has been a source of worry with yields up by almost 172 basis points this year Inflation has slightly gone up to 6.4 percent as seen in month of January 2018 The commentary is in line that inflationary pressures could be mounting and expected to range between 6.4% and 7.1%(prices of commodities)
    Generally economic activities have increased though growth prospects below…

  7. potential growth below The economic forecast for 2018 to 2019 is within consensus 5% and 5.2% respectively compared to the 4% and 3.6% respectively for 2017 and 2016
    The fiscal deficit target is within range also below 5% to 7%
    It can be seen that these efforts above are yielding results in creating that stability environment necessary in containing and maintaining the budget deficits, the overall debt, local debt arrears within manageable levels , critical to consolidating macroeconomic stability
    To effect positive FDIs and Cash flows to Zambia, the MPC should be reflective and within regional consensus of 25 bps or 50 bps up or down to ensure the unwinding and winding is within GMPR…

  8. to make Zambians Financial market efficient and cost effective for Investors The Global Monetary policy rate is at 5.87% comparable to Zambia’s at 9.75% everything being equal There is more work to be done the Governor can rise to the occasion especially moving from 12.5% a year ago comparable to similar countries within the MSCI classifications and EM markets
    The reserve ratio is within forecast to help support the economy and growth but could be brought to near standard

  9. The Bank Governor has fairly well performed given the economic and Financial challenges and could do even better given the improved outlook now He has fairly performed

  10. Under his watch our international reserves have dropped to $1.8 billion, the lowest in almost eight years. Our sovereign debt balooned by billions of dollars via reckless govt borrowing which has now put us in a state where we now have to grapple with increasing costs to service an unsustainable external debt. Our currency the Kwacha has depreciated 2.1 percent against the dollar this year alone, and was at 10.185 by 7:44 a.m. in Lusaka Friday. And yet this is a governor Mutaware Jonathan thinks has done a good job and is worthy of a new contract! We are in serious trouble banee, this country is collapsing under the weight of this kleptomaniac illegitimate “Malawan” masquarade of a president and his useless bank governor.

  11. If Zambian want a helping hand to sort out their economic and political woes, they will surely find it at the end of their arm, not from Kalyalya or Jonathan Mutaware. Mutaware’s economy is flourishing whence the mansions he is building in Manzini, the sooner you get rid of this thieves the better for you.

  12. Kalyalya, I like it when you try by all means to keep dollar at around k10. keep it up until I by car from Japan. By the way, Kalyalya, you have no influence on duty for importation of used cars from Japan? The amounts are too much. As if ZRA are the ones that manufactured these cars.

  13. When your friend has achieve the values and goals you simply commend and discount where rightly
    so He has shown macro prudential in setting monetary polices as above to achieve stability within the country ,region and global amidst headwinds That is not a simple task He is now moderating the rates to ensure consolidation as growth picks up to create those reserves to unwind

    He has worked If we had a rating system for governors like in america among st the past i am sure he will be fairly rated given the period he has been on the sit

    He has well performed

  14. Jay jay and his comrade-in-arms Spaka have become very predictable. Immediately I saw this story , I knew the two would find something negative to say about Lungu’s extension of Kalyalya’s contract and, lo and behold,this is exactly what has has happened! Gentlemen, just accept the hard reality that Lungu is the president of this country and that your double h will not go anywherdo

  15. Good job man! This man and Bank of Zambia have done a great job! Well done Mr. President for recognising workers who work hard and appreciating them. I am sure Musokotwane and the two professors in the South are not happy, Hagain!

    • What good job has the bank of zambia done…….exchange rate at 10, external reserves at lowestt levels, budget deficit terrible….even lenders like imf refusing …..who can do worse? These Kalyalyas the the chaps that have been looking the other way when financial crimes are being commited…..thats how these contracts are renewed. Keep the uselful iddddiots to serve ones agenda. My foot,

  16. One of the few credible voices of reason among the policy makers. Congrats sir, we appreciate your technical capabilities and professionalism.

    Solid international credentials and professionalism have saved the central bank from the recklessness of a Government poor fiscal discipline.

    We ask that you remain strong when the pressure you print more money for their pockets.

  17. Congratulations someone while the economy is so bad, and businesses can hardly make money is profound foolish. The economy is only improving because of economic activities from hard working Zambians trying hard to survive selling anything they can find and they are best consumers of goods produced by foreigners

  18. Congratulations someone while the economy is so bad, and businesses can hardly make money is profound silly.The economy is only improving because of economic activities from hard working Zambians trying hard to survive selling anything they can find and they are best consumers of goods produced by foreigners

  19. Congratulations, Doc.
    In the face of unreasonable political mismanagement, waste, and rampant corruption you have worked very well. If there is a way to control borrowing, spending, wastage, corruption, immigration, etc. and be more accountable, transparent, live within our means, reward and recognize professionals, be innovative and encourage entrepreneurship, this country would rise like a noble eagle.


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