Thursday, February 29, 2024

Zambian Kwacha Optimism: Economist Forecasts Currency’s Rebound

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In the face of recent economic challenges that have pushed the Zambian Kwacha to an all-time low, economist and financial analyst Noel Nkhoma remains optimistic about the currency’s imminent resurgence against other convertible currencies, particularly the United States Dollar.

Despite the downward trend observed in recent months, Nkhoma exudes confidence in the Kwacha’s ability to rebound, citing stability and renewed investor confidence as key factors in the recovery process. Notably, he points to the revival of mines, including the Konkola Copper Mine (KCM), which had previously faced liquidation. The resurgence of these mining operations is anticipated to contribute significantly to strengthening the Kwacha.

Nkhoma emphasized the positive domino effect this would have on the economy, stating, “We are talking about employment creation, opportunities in terms of suppliers and contractors to the mines, an additional excess supply of foreign exchange onto the market which will translate into a stable exchange rate.”

In an interview with ZANIS, the economist commended the government’s efforts to stabilize and foster economic growth in the year 2024. He expressed confidence in the administration’s commitment to opening up the economy, a move he believes will further bolster investor confidence and contribute to the currency’s recovery.

As of the latest data from the Bank of Zambia (BOZ), the Kwacha was reported to be selling at K 26.16 against the US Dollar by 15:30 hours on Friday. While the current exchange rate reflects the challenges faced by the Zambian economy, Nkhoma’s positive outlook suggests a potential shift in the near future.

“We should be comforted by the renewed investor confidence and renewed commitment by the government to open up the economy,” added Mr. Nkhoma, offering a hopeful perspective for Zambia’s economic landscape in the coming months. Observers will be keenly watching for signs of a turnaround in the fortunes of the Zambian Kwacha amid these positive indicators.

8 COMMENTS

  1. Mr. Nkhoma, for as long as Ichilema continues giving tax holiday to his friends you are not going to see any benefits from the mines. Nothing has been resolved with KCM other than lip service. The statistics for UPND/HH achievements speak for themselves. Kwacha k26, mealie meal k320, fuel k29, fertilizer k1250. So Mr. Nkhoma, if have been paid by Ichilema to campaign for him, we as Zambians know how many people are dying of Cholera every day under our so called economist’s watch.

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    • Are the tax holidays still there? I thought the new Doom government had done away with them as promised.

  2. All that we require is stable exchange rate. Not a volatile exchange rate swinging between 16 to 26 USD per dollar. People and businesses are loosing money without doing anything but by wild movements in the exchange rate. It’s also very difficult to plan

  3. I hope he’s not basing his forecast on the hope given by Dr Musokotwane that 80million dollar investment by the new Mopani shareholders will rebound the kwacha. What a dream. What is 80 million dollars. You need continuous billions for the kwacha to gain against the dollar.

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  4. So HH just wanted to be President and amass more wealth…..it turns out he has no idea how to manage the welfare of the country…..just a useless Bandit and full of self praise

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  5. This is out of hand and yet no one has come up with an answer as to why the exchange rate is in free flow and how to overcome it. Just assumptions every day, but as they say assumption is the mother of failure. Even when the mines begins to pay money is paid to these suppliers will they keep that money in Zambia? I don’t think so. That money is going outside the country. No there is something a miss here. There are people who are externalizing way too much forex.

  6. Kwacha is still sliding not only against the dollar but even neighboring currencies. From R1 to K1 just a year ago now its R1 to K1.42. Depreciation by 42%. By valantines day kwacha will be at K27 to 1usd.

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