Our leaders running the economic sector of this country need to come down to earth and stop this “Blue Sky” thinking propaganda.
Most recently the Minister of Finance made a pronouncement based on a number of mining initiatives that the kwacha will not depreciate in 2024.
This was further alluded to by the deputy governor of the Bank of Zambia at a media conference in Siavonga.
The reality however is that since January 1, 2024, the kwacha has continued to depreciate on a weekly basis. It is anticipated that by end of this week the Kwacha will be trading at K27 to a dollar. The rate today is K26.80.
So the question is: which 2024 are these government officials living in because the kwacha has continued its weekly depreciation since January 1, 2024?
Government officials should ensure that their statements are backed by results, otherwise they risk their credibility and public confidence dwindles as a result. The market remains mute despite positive statements being issued because the statements are seen as political rhetoric.
Right now investor confidence is low. We should also not underestimate the negative impact on investors due to seemingly unstable political environment arising from bad governance and dwindling democratic space. It’s not only economic factors that affect the kwacha but also perceived political instability. Take the PF wrangles as an example. These wrangles have also resulted in perceived political instability in the country and consequently foreign investors are cautious to make decisions to invest in Zambia.
President of the Socialist Party