Africa-Press – Zambia. Advocates for National Development and Democracy has observed with concern the depreciation of the Kwacha against the US Dollar and the negative impact it is having on the economy.
Organization Executive Director Samuel Banda says the gradual strength of the Dollar against the Kwacha has led to a significant rise in the cost of doing business, mostly due to the rising cost of importing goods and services. Mr. Banda says this has had a direct effect on the rising prices of basic commodities beyond the reach of ordinary citizens.
“In addition, we have witnessed small businesses shutting down leading to mass unemployment. This situation if left unchecked will lead to untold misery among the populace, as we have witnessed on the Copperbelt,” he added.
“That is why we are insisting in good faith that government hands over KCM to Vedanta as a matter of urgency, and as a remedy to rescue the free falling Kwacha against the US Dollar. By giving Vedanta the mine, we can be guaranteed that jobs will be secured, Copperbelt brought back to life, and the performance of our local currency will tremendously improve due to FOREX injection in the economy.”
He called on Government to unlock the mining sector promptly.
“Zambia’s economic development is dependent on the mining industry as it accounts for the largest part of GDP, and is also our country’s main foreign exchange earner,” he stated.
“A strong Kwacha is a necessity for our current economy that is import driven.Without a solution in sight, we risk plunging this country into an abyss of poverty as even food security will be a challenge due to high costs of agriculture inputs.”
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