Economics Association of Zambia President Lubinda Habazoka has attributed the recent sharp depreciation of the Kwacha to the venting from some diplomats.
Dr Habaazoka said the statement issued by some Diplomats serving in Zambia has helped create anxiety in the economy leading to the Kwacha weakening.
He said this has been coupled with mines withholding Foreign Direct Investment and production which has hampered the Kwacha.
“I understand that the main contributors to a weak kwacha now is debt service and demand for forex as we enter into the festive season but speculation and irrational factors are also contributing factors,” Dr Habazoka said.
“When you have BOZ maintaining reserves at around $1.5bn for over a year now, the market should adjust and understand that there is no risk. However, venting from some diplomats coupled with mines withholding FDI and production have also contributed to the anxiety,” he observed.
Dr Habazoka charged that Zambia has over $2bn outside the banking sector at the moment hence the resilience witnessed so far.
“In terms of liquidity, there is over K5bn that is outside the banking system in the black economy that is why the wheels of the economy have surprised the IMF who unofficially thought we would be gone by July 2019.”
The EAZ President predicted that in the coming few months especially towards the elections, Zambia shall see reports on the economy which will send people to the grave.
“As citizens, we should be very careful to separate substance from regime change plots that unfortunately affect everyone regardless of political affiliations. This is high time we enhanced citizen participation in the major suppliers of forex. If we had control over mining, just an order from Hon Bwalya Ng’andu to increase mine output could have boosted our reserves.”
He added, “Let’s learn from Chile, Saudi Arabia, Emirates, Russia, Kuwait, Iran and China! We can’t be careless with our resources like that. A law defining economic sabotage can be considered from unjustifiable scaling down of mine output even copper prices make sense can be introduced in extreme cases.”
Stop blaming other for your weakness
I’m trying to imagine wht it is like sitting in class and being lectured by Habazoka.
This fat cat has jokes.
So now the diplomats are to blame because they are exposing your corruption?
Just know that the money trail will be followed, and these diplomats know where you have hidden the loot. Do not piss them off too much because they will spill even more beans.
You thieves have destroyed the economy. And things will get a lot worse because you will not afford to pay back the huge debts to the Chinese, let alone the Euro bonds which you shared amongst your greedy stinky selves.
You have literally plunged our beautiful country into darkness. And it is not the 20 hours a day load shedding I am talking about.
We are in deep trouble!!! Yes, when you have a minister who thinks development is eating cheese, or that YOU’VE arrived if you can afford cheese, then we are a dead nation!!!
What curse is this on our country to have such illiterate, dull, primitive and ignorant ministers? From which dust bin did Lungu fish out this guy? Ala mwandi Zambia naisebana naba amashilu mulebika muma public office. None of Kaunda’s ministers would behave this way – that’s just how far behind you’ve taken us.
Habaazoka that is a sick joke. we are a consuming country. we import everything including vaseline , superdip , matches etc. maybe just maybe ,if we had a strong manufacturing sector things couldn’t have been this bad. please leave foote out of this.
Another Dr. St… D like hell.
Diplomats my Foote!!!….Kikikiki
Dr. Habaazoka is a smart man. I hope to see this man participate in governance in Zambia. He understands the dynamics of economics and who pulls the strings. Many UNDER FIVES would attack Mugabe but were unaware what was happening covertly in that country. This is the reason why Zambia must NEVER have HH in power. The boy is a seller and a sellout. He is there to sell ziko. He took money to the people who dribbled MOBUTU for “safekeeping!” When he dies, the money shall die holoso.
Habazoka is so right. All currencies behave like that. If someone holding $500 billion starts making noise the currency will fall
In 2014, when president Sata died, Zambia had close to 4billion USD in foreign reserves. This always came in handy in stabilising the local currency by BOZ offloading some USD on the market. Now since lungu took over power, those reserves are down to ZERO through corruption money laundering, externalising forex etc. So expect the slide to continue.
Habazooka has no credibility. He is a hungry mouth that spews out sewer to recieve some crumbs falling from the table of grand corruption. Chapwa!
Habazooka should focus on macro economic activities on the manufacturing front.. this remains our way out not partisan nonsense his spilling out..
I hope he gets to read these comments!
Dr. HABAZOOKA has more credibility than HAZALUZA HAGAIN.
Haabazoka sure, what of mukula?
Don’t forget you had black Friday last week and you swept the shops clean. There has to be restocking for Christmas, New Year and Valentine’s. So there is a scramble for the Green buck to import the goods. This is the major problem. Not the mines and donor negative sentiments.Yes, they have an effect but not as grave as consumer rush for imported goods. This kwacha decay trend will continue till about February next year, that is when we should expect stabiliization around K20 per dollar
This dirty Moron doesn’t know what the hell he is talking about… always blaming external forces for all of the PFooools useless govt failures, you ido1ts should grow up and take responsibility for all this mess… dirty f*ck
Dr. Habazooka is talking about speculators in the economy but the little boys cannot swallow that all they know is “Lungu, this, Lungu that!” Prof. No INSONI has written to the UN HAGAIN using his University Letterhead that only UNDER FIVE can be a good president! He has written that “If HH had been the commentator instead of Dennis Liwewe, Zambia could have won at least 10 AFCONs!” UPND TRIBO INCOMPOS – Group 4s.
Thought you had the answers to reverse all that.
I rest my case.
Lubinda needs a bigger platform to advise GRZ. He’s a real patriot with a heart for the nation. Keep it up, Zambian!!
Saudi Arabia is going for the listing of its oil production and marketing company for what is perceived as the biggest listing ever to the tune of $25billion. Habazooka is talking nonsense about means of production being directly controlled by government. Chile has been experiencing violent riots in the last few months due to social imbalance and yet the mines are state controlled. He gives statements like the Ministers will just instruct the mines to increase production like production just comes like” ameno mukanwa’. It takes years of development for ore accessibility and investment in process plant technology to improve efficiencies. I feel sad when I read such comments from the “Educated” or so called “intelligentsia”. The answer lies in a corrupt free government with clear cut…
policies and which is ready to take ownership of its shortcomings.
It’s everyone else’s fault but the PF’s. As far as they are concerned every “effort” they are putting in should be leading us to Eldorado. F***ckn criminal imbeciles!!! We are going nowhere with you leading our country.
This Russian trained economist is begining to make sense. I think he should be made Finance Minister.
One wonders whether to laugh or cry. What has become of our country that people now think in reverse? Are these the side effects of Dununa Reverse? The problem is not the Diplomats but the docile Citizenry tolerating thieving leaders who are sending the poor among us to their early graves! Diplomats are simply trying to rescue poor citizens from their mass plunderers! We are now in a country where ordinary citizens are afraid to talk because Freedom of expression no longer exists in Zambia! Our leaders have become so bold in corruption that they have nothing to fear because the police and courts are firmly under their armpits! Modern Diplomatic and international relations frown upon corrupt acts bordering on state capture! It’s Corruption killing your kwacha!
What the man is saying is actually true, but again very few Zambians can understand his point…I guess not even all Ministers, including the minister of Finance himself…unless he schooled at a reputable institution… Institutions that understand the Global business world….just by mere appointment of credible people, and listening in to those with critical positions in the game of Global business have to say, can affect the tradings of a country…..its only the well vested and well learned that can understand such….that’s why we keep saying, Zambia need leaders who are current to today’s Global happenings…. Not mere teachers or nurses who have just traversed the wide Zambia due to their job postings…
@SHAA, you are right but UPND Vuvuzelas are to dull to discern what Dr. Habazooka is saying. My foot!
If its not HH to blame, it is diplomats. Do these cadres called lecturers have any skop. No wonder education standards in Zambia are very low. And the guy is called a doctor. How does he dream/guess that the Kwacha fall is due to diplomats. Of course everybody is aware that this country is finished, but still we cant have people waking up and saying anything anyhow
The economy has been in free flow even before diplomats uttered a single word. Be informed. Find another excuse, not this one. This one does not hold water please
Running a country and scoring good on its economic drive requires strategy in today’s world…. Its not chacha days where just gaining freedom to enter into town and shops meant something for people…. Today we need leaders with a good vision, well learned and vested in today’s Global business acumen…..what we need is economic emancipation…. People with jobs and businesses for a decent living….it can be done, if only we can have new and credible leaders in front….not the current crop…not even in HH team ….
But how does the economy improve when you have an advisor in charge of violence and the other in charge of smiling anyhow. Coupled with an un educated boot licker. This is what you expect …ai normal iyi
Habazoka what’s 1+1
Dull fat a$$
Havazoka what kind of blame game do you play.
Play it well.Blame the right culprits.
What kind of economics have you studied?
Habanjoka, just shut up party cadre/fyul.
There is no vacancy in cabinet.