Africa-Press – Zambia. The appreciation of the kwacha against major convertibles will continue because of the following reasons: 1. Mopani mine has released $80m in paying suppliers and contractors. This money is being paid in dollars and not kwacha. Meaning what the owed supplier is circulating are dollars not kwacha. The total amount to be released is $250m over the coming days/months
2. KCM has also released $25m for paying of workers and other costs. Vedanta has managed to raise the required $1.3bn for reinvestment meaning more $ are expected to flow into the economy.
3.More than K2bn dormant government money has been mopped up from commercial banks to BoZ. This is the money that Commercial banks were giving businessmen who would then keep in their $ accounts for future use. Instead of using their dollars which had accrued to $3.3 bn, investors kept on getting kwacha which became scarce. The move by government has now forced dollar account holders to start spending the dollars which they were hoarding thus releasing and increasing the dollars in circulation.
4. The big mining investors such as FQM, Lumwana, Luanshya mine will this year start to reinvest billions of dollars in their mines. The Kwacha is safe. Coupled with sustained investor confidence, Zambia is the land of work and joy
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