Q FM Africa's Modern Radio
Business and Financial Analyst Blessings Kafwanka
Business and Financial Analyst Blessings Kafwanka has attributed the weakening of the kwacha against major convertible currencies to Zambia’s huge debt which he feels is not convincing foreign investors to invest in the country.
Speaking to QTV Business News, Mr. Kafwanka notes that despite the positive economic indicators such as low inflation, high copper prices on the international market, reduction in statutory reserve ratio, among others, the kwacha has continued to lose value.
Mr. Kafwanka says the government should come up with feasible solutions to this issue before it spills into other major challenges.
He points out that one of the key indicators the Energy Regulation Board (ERB) uses to adjust fuel prices is foreign exchange; stating that there is likelihood that in the next few weeks they might consider increasing the price of the commodity if the kwacha remains at the same level.
Mr. Kafwanka has since recommended that the government strengthens the manufacturing sector so as to reduce on importation of certain goods and services saying this might help address the weakness of the kwacha further.