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.