Thursday, June 13, 2024

Kitwe Chamber of Commerce Welcomes Kwacha Appreciation

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The Kitwe Chamber of Commerce has expressed its satisfaction with the recent appreciation of the Zambian Kwacha, stating that it will have a positive impact on the cost of importing goods for its members. Chamber President Emmanuel Mbambiko believes that the Kwacha may experience further appreciation if the International Monetary Fund (IMF) debt restructuring program is successfully implemented.

In an interview with ZANIS in Kitwe, Mbambiko emphasized the importance of a stable exchange rate for effective long-term planning in business operations. He acknowledged that fluctuations in the Kwacha-Dollar exchange rate make it challenging for businesses to plan ahead. However, he expressed optimism that once the IMF funding package is secured and the processes concerning Mopani and Konkola Copper Mines are concluded, the Kwacha will stabilize.

Mbambiko praised the government’s efforts to reduce the cost of doing business, citing the appreciation of the Kwacha and the decrease in fuel prices as positive outcomes. Nevertheless, he cautioned that if the Kwacha exchange rate falls below 16.5, it could have adverse effects on businesses. Expenses such as rentals, labor costs, and fuel remain high and cannot be adjusted downward to match the Kwacha appreciation.

Mbambiko attributed the Kwacha’s recent behavior to speculation surrounding the IMF debt restructuring deal. He stressed the need for the deal to be finalized, as it is expected to contribute to the stabilization of the Kwacha. Additionally, he highlighted the potential impact of resolving the issues surrounding Mopani and Konkola Copper Mines on the exchange rate.

The Chamber President expressed his preference for a Dollar-Kwacha exchange rate ranging between 17 and 18.5, rather than falling below 17, in order to maintain a balance that benefits both businesses and export-oriented enterprises.

The Copperbelt Cross-border and Integrated Business Association also welcomed the appreciation of the Kwacha, as it has reduced the cost of importing goods within the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) regions. The Association’s acting General Secretary, Poster Jumbe, noted that this development would lead to lower prices for imported goods, ultimately benefiting Zambian consumers.

Jumbe emphasized that the appreciation of the Kwacha would boost business activities and contribute to economic growth in the country. He called on the government to take measures to ensure the continued strength of the Kwacha against the US dollar.

In recent days, the Zambian Kwacha has experienced a sharp appreciation against the US dollar, with the exchange rate decreasing from about K20 to around K17. This positive development has been welcomed by various business associations, who see it as an opportunity to lower import costs and reduce prices for consumers.

21 COMMENTS

  1. Things are slowly coming together………..

    Soon , we say again , the useless opposition will be reduced to one man street corner protests who will be will to even undress to gain an audience………..

    The Zambian people will be too busy working and reaping the fruits of this prudent GRZ……

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    • Spaka – A drumbeater like you wouldnt know why its even appreciated its temporary…its that time of year mines paying taxes.

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    • Haters will always find faults. If you walk on water PF haters will say it’s because you can’t swim

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  2. And this is what the Bazungu and IMF wants….they want you to know that without them you’re nothing…you have to be beggers and 5 billion years from today Zambia will still be poor….that money you’re asking from IMF is right there in Zambia just open your eyes

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  3. A styopet statement by a misguided institution. We don’t need a strong or weak Kwacha, we want a stable Kwacha! What business does this Mbambiko do? Definitely not in import of goods. It doesn’t make sense for a currency to change its rate everyday. Can Mbambiko explain why we’re now queuing for fuel when there’s no shortage? He’s talking nonsense. He’s not fit to head that institution. No wonder he doesn’t have any members

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    • Mbambiko is a Upnd member. I first saw him at church during a funeral. Even at the funeral he was talking politics.
      That’s besides the point. Yes why are we experiencing sporadic supply of fuel of late?

  4. K15 to a $ yesterday, K17.5 today and possibly K20 tomorrow.

    Koma mambala HH amvesana ulesi zoona

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  5. How can you welcome Kwacha appreciation when its hardly to do with govt policies but the mines using dollars to buy kwacha to pay ZRA. Its that time of the year. KCC must be full of dullards and cadres.

  6. Being a dull praise singer must be the biggest curse for UPND followers. I had meetings at BOZ last week when I was in Lusaka and those chaps were more than happy to release millions of $ into circulation so they can create a false impression that the kwacha is appreciating. This has nothing to do with the IMF, but new dullards government trying to manipulate the foreign exchange market

    • Iam often left to wonder what economics you Zambians do. You focus too much on Kwacha value. That is not what will bring development. Rather focus on stability even if your Kwacha is 1000 to the dollar. The Lesotho Loti on record is more powerful than the Kwacha but does that make Lesotho more progressive? If the Kwacha is strong what do you mean? Can you repair potholes? Can you supply running water to villages with this strong but useless Kwacha?

  7. The much celebrated Kwacha has already start depreciated. It is the usual UPND story of reducing in increase or increasing in order to reduce. Just like fuel, five steps forward two steps backward.

  8. When you have deceivers running the country….these guys stealing from Gullible Zambians in broad day light…and you wonder why Pastors and Prophets become rich at the expense of their gullible followers…same as UPND praise singers….very dull and HH knows that his followers are qullible….during campaigns HH lied to his dull followers that he owned a Private Jet which he uses for campaigns….and his supporters started jumping up and down and yet it was a lie…HH was using a plane hired by the same bazungu who are getting our natural resources for free and taking over our mines….WAKE UP ZAMBIA

  9. True Kwacha strength might be celebrated if it was an international exchange currency like the dollar but like the strong Kwanza, even our neighbors don’t use it.

  10. You see how praise singers come with guns blazing when the kwacha appreciates but when its on free fall they hide…ask yourself why is Denmark/Finland/Sweden with zero natural resources richer than all African countries with massive oil…Gold..copper…diamonds etc….in Africa our biggest enemies are our leaders…..

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