THE weakening Kwacha is causing serious concerns for the business community and its overall impact on the economy and ordinary citizens is worrying, Advocates for National Development and Democracy (ANDD) Executive Director Samuel Banda has said.
Mr. Banda told The Scoop that the persistent poor Kwacha performance against other convertible currencies had led to a significant rise in the cost of doing business, mostly due to the rising cost of importing goods and services.
He explained that this continued to have a negative effect on the prices of basic commodities.
“We have observed with sadness the continuous depreciation of the kwacha against other convertible currencies which is consequently impacting the economy negatively. The basic commodities have increased for ordinary citizens. It is imperative that the Government stabilises the exchange rate by effectively revamping mining operations by ensuring that there is increased production to increase export volumes,” Mr. Banda said.
He said that it was important for the Government to look at ways of effectively revamping the mining sector, which accounted for a significant portion of the country’s Gross Domestic Product (GDP) as its main foreign exchange earner.
He said that ensuring that Zambia increased its copper production and exportation would help strengthen the Kwacha adding that a strong Kwacha was a necessity for the current economy that was import-driven.
“Due to the high cost of doing business, small businesses are shutting down, leading to mass unemployment, a situation that if left unchecked will lead to many more economic challenges as economic activities in the business community continue to be slowed down,” he said.
He said that without a solution in sight to stabilise the Kwacha performance against other convertible currencies, there was a risk of the country plunging into deep poverty.
He further affirmed the organization’s commitment towards providing checks and balances with regard to various economic affairs in an effort to grow the Zambian economy.