Tuesday, June 18, 2024

Government Anticipates Kwacha Stabilization

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During a Symposium on the performance of the 2023 National Budget in Lusaka, Finance and National Planning Minister Situmbeko Musokotwane shared insights into Zambia’s economic path, expressing optimism about the stabilization of the Kwacha in the coming year. Dr.Musokotwane attributed this positive outlook to the expected inflow of investments into Konkola Copper Mines (KCM) and Mopani Copper Mines, signaling a potential boost to the country’s foreign exchange reserves.

According to Dr. Musokotwane, the Kwacha has been under pressure due to a shortage of dollars in circulation. However, the situation is anticipated to improve as new investors inject liquidity into the mining giants. He highlighted that the investor in KCM has already infused $80 million to pay creditors and suppliers, providing much-needed foreign exchange. An additional $50 million is expected in the next week, contributing to the potential stabilization of the Kwacha.

The Finance Minister underscored the importance of collaboration with the Southern African Development Community (SADC) and the broader African continent to advocate for local vaccine manufacturing. He emphasized that this collaborative effort would address the current pressure on the Kwacha and support economic stability.

Dr. Musokotwane also shared that Zambia has received $561 million from the $1.3 billion financial bailout provided by the International Monetary Fund (IMF). This influx of funds has facilitated the acquisition of non-concessional loans from the World Bank, contributing to the country’s economic recovery.

Additionally, Secretary to the Treasury Felix Nkulukusa revealed ongoing negotiations with private creditors and expressed optimism that positive outcomes would be achieved, bringing a favorable outlook to the economy. He highlighted the government’s commitment to debt restructuring, with non-disclosure agreements already signed with most private creditors.

Nkulukusa further disclosed that Zambia’s external debt had increased from $13.9 billion in December 2022 to $14.3 billion as of September 2023, attributing the rise to loans accessed since qualifying for the IMF Financial bailout in August 2023.

Bank of Zambia Governor Denny Kalyalya provided positive news, stating that Zambia’s international reserves had increased from $3 billion in December 2022 to $3.3 billion in December 2023, sufficient to cover three months of import needs.

The symposium offered a comprehensive overview of Zambia’s economic performance, progress in debt restructuring, and strategic plans for economic recovery, showcasing a resilient approach to the challenges faced by the nation.

18 COMMENTS

  1. Fossil you anticipate instead of being sure. KCM is going to borrow money from a Zambia based bank so I wonder how that can improve our Kwacha. Just retire.

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    • KCM is a short-range investor. It is back to continue ripping off where it left. 80 million dollar in and 800 million will be out by August 2026. Simple thuggery.

    • You KZero are the slow-think people of PF who brought this country’s economy to its knees and debt default. You hypocrites should be the last folks to lecture others on matters economic.

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    • @Mlevi, we’ve been through this before. This is exactly what Kafupi and his cohorts said about UNIP and KK after 1991. When things got worse they’d tell us that they were trying to fix the mess left by KK and that they’ll eventually improve. What did they fix? They sold companies and stole the money, and in some cases they stole entire companies and became millionaires. To date they boast as being rich because they went to UNZA. We know who they’re and what they do. Don’t waste our time, just continue stealing

  2. What I know is that the British Pound’s strength or weakness is determined by production. Once production is slowed,then it fluctuates. It’s difficult to alter production overnight or on impulse, it’s gradual. The Zambian Kwacha fluctuates sometimes on weird reasons some of which are sentimental. If Nawakwi accuses HH of something then the Kwacha loses value because she’s sending a wrong signal to investors? Our GDP as remained almost the same but our currency has had several somersaults! The Minister is talking about money in circulation but in DRC you can find the Dollar everywhere including markets. What’s the matter with us?

    • DRC yeah a first time visitor would be wondering how poorly dressed individuals are able to have so much dollar on their bodies. No wonder their team is shining at the CAF 2023.

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  3. You rush to the imf and world bank for what? Are you guys serving the interests of the globalist whose agenda is to impoverish the world? people Just listen to the ideas being proposed by the WEF and their leader klaus schwab who has influence in almost all levels of government across the globe and make your own conclusion …

  4. No disrespect but we need proper leadership….we need genuine patriot Zambians to build our economy…now they’ve realized that only our minerals can help us not IMF or world Bank

  5. Can someone please tell these clowns that their lies are not working anymore. Just last Tuesday the kwacha fell by 1% to the dollar, didn’t bother to get out my calculator for the latter days, and these empty suits are telling us ‘we anticipate this and that’. The Zambian economy is not a maize field where you can easily say I anticipate to get at least 50 bags this season. !d10ts!!!

  6. If we dont go to the IMF or World Bank where else could we go? The private banks are not as flexible because they arent very interested in the borrower’s responsibilities. Just the money. And When you are deep in debt with them they have no HIPC.
    Solutions lie in a “bite the bullet” revolution similar to the Chinese in which for a period you establish local production especially in agriculture. However, as people are bound to suffer during revolution how does the ruling party survive? Thats where our political strategies are being tested.

  7. I also anticipate manna from heaven, milk and honey flowing all over the land, and golden paved streets in Lusaka-in 4024

  8. These people or this man is not normal in his mind…haven’t we already had over 5 billion USD from so called investors coming into the country? That money doesn’t stay, if anything are they not the ones who are causing the kwacha to become valueless…these so called investors externalize all the so called investment to other countries such as UK, USA, China, Australia where they purchase expensive mining equipment. We see these machines everyday on trucks destroying our already finished roads. There is a serious problem and this man Musokutwane must resign on grounds that he has failed not only his party UPND but the nation as a whole. To allow Musokutwane to continue in this most sensitive role is a risk to national security.

    • Ctn…
      The kwacha is getting to K30 per USD for heaven’s sake…it has never happened in the history of Zambia for the currency to be devalued at such a fast rate in such a short time… please badala go and rest somewhere with your millions of USD that you obtained through whatever means, you have caused enough pain and suffering…let someone else save our currency.

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