FINANCE and National Planning Minister Situmbeko Musokotwane has assured citizens of an imminent recovery for the Kwacha against the US Dollar.
According to today’s ABSA Bank forex update, the Kwacha is trading at K26.3 per US dollar.
But Dr Musokotwane yesterday, during the opening of the new Indo Zambia Bank Long Acres outlet, cautioned against overvaluing the US Dollar stating that the Kwacha is about to make a counter-attack as tangible money flows into the economy.
“For those buying dollars, thinking it will reach K100 (per dollar), be careful. The Kwacha is poised for a counter-attack, not through imagination but with tangible money entering the economy.”
He highlighted the challenges faced in 2023, attributing them to a decline in copper production and mining investments, but expressed confidence in the ongoing efforts to revitalise the sector.
“The reduced output in 2023, causing the foreign exchange problem, is a temporal setback. Active mines like Kansanshi, First Quantum, and Lumwana are already preparing for the next phase of mining, with significant investments,” Dr Musokotwane said.
“This, coupled with imminent resolutions on major mining transactions, will propel the economy forward.”
The Finance Minister also highlighted progress on key mining projects.
“Luanshya’s Shaft 28 is set to reopen with an investment exceeding $1 billion. KCM and Mopani are on the brink of being handed over to investors, with substantial funds expected, ensuring their revival. The Kwacha is about to make a counter-attack as tangible money flows into the economy.”
Dr Musokotwane shed light on imminent financial injections, stating, “We expect $80 million this week and an additional $50 million shortly after for Mopani’s revival. A cumulative total of $620 million will be invested, ensuring a significant boost in production and stabilising the exchange rate.”
In addition to the mining sector, Dr Musokotwane addressed the broader economic landscape, emphasizing the government’s commitment to a conducive environment for private sector-led growth.
He emphasised the government’s dedication to policies fostering growth and strengthening governance in the financial sector like Indo Zambia Bank.
He urged Indo Zambia Bank to continue its efforts in supporting businesses, especially Micro, Small, and Medium Enterprises (MSMEs).
Acknowledging the bank’s role in financial inclusion and development, he encouraged innovation and the creation of new products to enhance financial services across the country.
By Moses Makwaya
Kalemba January 10, ,2023