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Sata tells new BOZ Governor to work on the weakening Kwacha

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President Michael Sata

President Michael Sata has urged the newly appointed Bank of Zambia Governor Michael Gondwe to enforce the statutory instruments that will enable the central bank keep record of how much is being raised from the export of minerals such as emeralds.

The president says this will enable the people of Zambia benefit from the resources that the country is endowed with.

Mr Sata has also challenged Dr Gondwe to ensure that the central bank comes up with measures that will help strengthen the Kwacha.

The head of state has noted that the Kwacha is currently the weakest currency in the world a situation he says posses a threat to the economic performance of Zambia.

President Sata was speaking at State house this morning when he swore-in Dr. Michael Gondwe and Musa Mwenye as Bank of Zambia Governor and Solicitor General respectively.

And president Sata has also urged Mr. Mwenye to work with the legal experts to revamp the legal aid sytem in the country to allow more people have access to legal representation.

The president has also indicated the need for district attorneys saying this will help strengthen the judicial system in the country.

Meanwhile president has declared Vumbwi and Lunga as new districts in the eastern and luapula provinces saying this will help improve administration as the 2 areas are too remote to fall under Chadiza and Samfya respectively.

The president has also sworn-in seven diplomats to serve in various countries as well as two permanent secretaries.

The president has since urged the diplomats to ensure that they represent Zambia well and work towards strengthening ties between Zambia and the countries in which they will serve.

President Sata added the ministry of foreign affairs had been having problems in trying to clear some officials in the countries that they are supposed to serve because of the bad reputation that some former Zambian envoys had left behind.

And foreign affairs minister Chishimba kambwili says the PF government has been vindicated by the fact that they have not appointed any political cadres to serve in the foreign mission as was the trend under the MMD government.

The minister told journalists that the diplomats have been appointed based on their qualifications.

QFM

editor
editorhttp://www.lusakatimes.com

107 COMMENTS

  3. Well probably a good idea Mr President to give the central bank the mandate to strengthen the Kwacha, and one might argue that Zambia does not need a weaker currency because it needs to develop and important a lot of things to help the development agenda.

    I think this wont be hard to execute, if all receipts of exports are converted back to Kwacha immediately, that could give support to the Kwacha, and with currency wars going on , strengthening the kwacha shouldn’t be hard.

    Obviously exporters, who are happy with a weaker Kwacha , will disagree. A stronger Kwacha hurts their revenue.

    I think we need to find the fair value of the Kwacha that benefits both exporters and importers, a hard act to balance though.

    Good luck Mr Governor.

  5. @3 – The President just says anything he thinks, not the reality. I don’t know why he finds it difficult to consult his expert advisors before opening his mouth. Remember the ‘FAKE CURRENCY’ statement! He has no idea even the extent of how strong or weak the economy he has inherited is. Auto-pilot…

  7. congo franc is currently 1000 to a dollar, sao tome uses CFA franc which is 470 to a dollar somalia dollar is currently at 150 per dollar. So Ba Engines get your facts right

  8. #2 Get a life, why are you so bitter over the holiday seasons. Are you lonely and taking it on poor LT. What is wrong with the headline really? Sounds like you are just describing yourself.

    Loosen up and have fan.

  9. Auto Pilot? Can anything be worse than RB`s regime? You mean abolishing an act which defends plonkers abusing their offices was good? Having an office on a plane was good right?

    Shut up if you are still hurting. Just sit and lick your wounds or rather enjoy those sour grapes. They will be your food for another 5 years.

    Toot toot toot!

  10. #5 you must be upnd or HH’s son who see bad even when Sata says “God is good”. Every person who thinks using his brain will not see anything to criticise what the President has done today. #5 ulitole

  12. Where are the bloggers who said, one had to be an Economist to be central bank governor? Is this man more qualified than Bwalya Ngandu? Or was it all about tribe? Talk to me CRAZYBOY!

    • Bwalya Ngandu is a socialogist or something like that never an economist except in Zed where you get jobs because of nepotism. He was fired by Levy for incompetence at DBZ! He knows nothing much about economics even as a holder of a doctrate degree.

      Crazy boy please do elaborate but this is all i know!

  13. Good move on Lunga district, the place is so remote and accessibility is a challenge. This will definitely enhance development.

  14. Is it possible for Kambwili to work without refering to MMD. What really haunts him about the MMD? What perform well and will give you another term. Dont perform with the MMD as a yard stick. Do your own work Sir.

  15. All the appointed diplomats are Bembas. And by the way, talking about being in a weak position, was it not Sata who told Linyunga Ndambo that they are is a weak position when his own Kwacha is the weakest currency in the world? Someone had better teach this Nabwalyan Chimpanzee some basic economics.

  16. sata condemned purchasing of 4 armoured presidential vehicles at K4 billion but refused to move into state house until chikwanda’s company was single sourced to renovate for $4 million whilst sata was paid $2500 per week to stay at his house
    is this cost saving???
    no wonder he could pay his bills in livingstone

    • If only you knew how much your uncle Bwezani Dozzy got for globe trotting. Now do us a favour and jog on you plum! Make sure you don`t miss the rock crawled from under! Tool!

    • If only you knew how much your Ala Bee was going to spend on construction on extending State House if he won the elections and how much those Jeeps actually cost without DHL airfreight and armour plating!!

  18. @clive chanda…the man is qualified….what qualifications do you want kanshi?…he has experience and he has it all to be a governor…..if he is your uncle you were not even going to yap yap….*****s..

  20. A weaker currency is not necessarily bad if you are an export economy. You grab more customers for your products/services. The challenge comes only when your currency appreciates and begins to frighten off foreign buyers. As MMD chief bootlicker said the balancing exercise is the real challenge.

  21. #8,
    I agree with you, #2 needs a fan to cool down his head but I would also suggest that he tries to have fun during the festive season.

  22. There is Ba Sata issuing instructions like he is delegating chores to a Kitchen cook!!LOL 
    I hope the new Governor is thick skinned and has bought some crayons and installed a black board at State house as he will earning every ngwee working for the old man 24/7!! LOL

  23. Excellent!! This could have been done within the 90 days, and this would have made me proude :)>-

    Don’t get me wrong, I’m still happy, progress is progress.

  24. 7, those figures in other countries have nothing to do with the strength of a currency, but even if I explained it will not mean anything to some people anyway.

  25. Kwacha isnt the weakest in the world ba presido. Do you know about the Rupiah from Indonesia, Rial from Iran, Dobra from Sao Tome or the Dong from Vietnam? 

    • When Sata says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  26. This is what happens when you have a very limited understanding of economics. Having a strong currency does not translate into economic growth. Whether to strengthen or weaken the currency is based on the trade policy of a given country. If you want to boost exports you weaken the currency. If you want to make investments in capital goods cheaper for the locals you strengthen the currency.
    Both have their pros and cons. Like #3 said balancing is the main issue. Also stability is something that should be taken into account. The president should keep his hands off of monetary policy. Let the economists do what they must.

  30. the Viatnamise Dong is currenbtly 21,020.00 to a USD, Sao Tome Dobra is 18,000.00 to a USD etc therfore, our ZMK is not currently the weakest so i dont know what our president means when he says our ZMK is the weakest

    • When HE Sata says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  32. #8 MMD Chief Bootliker, I’m really impressed with your objective contributions today… I guess you realise that the role of the opposition is NOT to Oppose but offer advise and constructive critique to GRZ. Well said ‘Mudala’

  33. @ 27 not that you also cant explain, am a lay man with such issues (economics) you need to put it in Dummie’s language for me to understand, ask me about the “physics of sound” i will mention terminologies that will sound to you like they out of this universe, so its okay for one to show ignorance in what they dont know, thats what ignorance is any way.

  34. Great move. Lets unite n help our country move 4wad 2getha. Zambia is not about Sata n PF but 4 all of us. Lets give Sata our backing n b constructive in our criticism

  39. Two things should be made clear:
    (i) Having a strong currency is not a matter of digits. Hence the Zambian Kwacha can be at K5,000 to the dollar, while the Malawian kwacha at K164 to the dollar, but if K5,000 can buy a loaf in Zambia while in Malawi you need K328 to buy bread, then the Zambian Kwacha is stronger than the dollar. In essence the REAL EXCHANGE RATE for Zambia is stronger than for Malawi.
    (ii) A strong currency is not necessarily good for the economy. This is because exports may become expensive thereby reducing export revenues while import expenditure may rise, leading to balance of trade deficits and a weakening currency.

    • do u realise that a loaf UK is 2pounds=K16,000, then with your fake economics kwacha is strong than UK’s pound since the same amount woulD buy 3 loafs in zambia. Do your research

  40. pipo who critise everything!!!!,surely still not getting it that pf is in power.under5 plus mmd get real,stop crying over spiled milk.

  41. Only Bembas will benefit from this rubbish President..!! Every one knows that this man has no capacity to know how the currency can gain value. The man of action. He cheated to go to state house..!!!

    • When Presient Sata says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  43. When the President says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  45. The weakening of the Zambian Kwacha is good news. It will make me make more millionaires when I send the money back to Zambia and the people suffering from this are the people in Zambia, well I am not why should I care?

    Thanks

  46. #19 – I honstly think it is better to steer clear of subjects you have no clue about other than making such a pathetic quest to appear learned when you are justy a lousy unintelligent party cadre. It is this Chibamba Kanyama toilet economics type that I detest deeply. It is a well know fact to all worthy contemporary economists, monetarists & classical alike, that a weak currency especially of the Zambian degree is awful for any economy. Ours is an economy prone to persistent “negative balance of trade i.e. trade deficits or, informally, a trade gap. Now, coupled with inflation of 7.2% and a GDP expected to contract to 6.5%, it is unforgivable stu.p.i.di.ty to claim a weak currency could be ideal for such an economy.

  47. And foreign affairs minister Chishimba kambwili says the PF government has been vindicated by the fact that they have not appointed any political cadres to serve in the foreign mission as was the trend under the MMD government.
    CAN SOMEONE LIST THE NAMES OF THESE NEWLY APPOINTED DIPLOMATS!

  48. Zambia does not have a windfall tax on copper exports so even if we wanted to boast our exports via a weakening currency while import volumes remain the same, we will not succeed because the owners of the copper mines are busy externalising their proceeds leaving us with a yawning trade gap, shrinking GDP and resultant decline in inflation. What you have in Zambia today is a stinking moribund economy of the worst order, not even the lord Jesus Chrsit can pull you from doom. You suck you people and do not deserve anything better. No wonder you voted for a chap whose ways, looks and name all bear a cunning semblence to the devil hoping Go has forsaken you which he has, so you only option is SataN. You’re in HELL!

  50. @ 36 Afflicted. Well said! It’s all about purchasing power parity. If it’s a lower number they want they can just divide everything with economic value, denominated in zmk, by 1000 to arrive at a rate of 5.1/dollar and the value of everything else in zmk will be divided by 1000. Means nothing really, except it will cost a lot of money to effect and it will be easier to count. There is merit in appreciating the purchasing power parity of the kwacha but i think the best is to let it find its own level driven by economic activity

  51. The biggest problem inhibiting economic growth in Zambia is not the Kwacha exchange rate against foreign currencies, but the continued export of raw materials. The Zambian economy will grow when GRZ realize that they can generate more revenue through exporting processed raw materials, than what is currently obtaining. Processing raw materials in Zambia, will result in new companies being created thereby reducing unemployment as well as creating more revenue for the government in form of taxes. This surplus revenue can be used to improve infrastructure such as roads, schools and hospitals among others.

  53. 41 you are a fool.you own family is suffering.does it mean when you send ka 500 pin to your Granma its fine.one day you will be back to sweet home zambia.

  54. Dr Gondwe first measure is to tell the constable to shut that horrid mouth of his for 1 month and the Kwacha will gain so quick even that s h i t called Italian bunga bunga will be surprised.

  55. Let’s continue to encourage our president to continue talking such productive words, after all we are stuck with him till 2016.

  56. We have gotten used to presidential language and correct facts as we go along, Zambian Kwacha is not the weakest currency in the world sir. The mere good book keeping at BOZ does not ensure how much value of minerals are being extracted and being sold in Switzerland. Accountability of menerals begin at the mine and that would mean stractural and operational models be executed with inbuilt audit trail procedures. BOZ is an independent institution accountable to parliament under normal procedures and with PF meddling in BOZ operations, meaningful economic growth will be hard to achieve.

    • When the Presido says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  57. A couple of concerns can be cited here in relation to budgeting and economic growth expected from new BOZ records by Sata. If we are a democratic country 1- Creation of new Muchinga province and transfer of southern province HQ were not debated by parliament and not provided for in the budget and their capital expenditure is huge. 2- New districts being announced without parliamentary debates will be stiffled of resources of development because parliament has not consented to for approval. Dishing of orders will not make Zambia grow economically as instruments for performance exist under guidelines.

  58. @39, Do u know that a loaf in UK is 2pounds=K16,000, then with your fake economics kwacha is strong than UK’s pound since the same amount would buy 3 loafs in zambia. Do your research

  60. Some misleading informations here. Zambian Kwacha is not a weakest currency in the world but rather one of the weakest currency in the world. Be careful when you report you people. Avoid misleading people.

    • When the President sata says the ‘weakest’, he doesn’t mean it as in laterally, but rather saying that the currency is not doing fine. e.g. when i tell my girlfriend that i knocked at your door a billion times, doesn’t mean i really went one billion times knocking but just trying say how long she took to open the door. This is what i learnt in grade school. CHIZUNGU BABA!!!!

  61. N0 39 and all those supporting the weak kwacha,the state of the kwacha @ the moment is simply an indication of the poor economy.Our currency is one of the weakest currencies in tbhe world.Something ought to be done.The majority of countries with strong economies have strong currencies while the poor nations have weak currencies.

  62. #39 you are wrong.Don’t confuse expensive bread and a weak currency.A weak currency is not about digits but its how low a currency moves over a given time.If the SA Rand moves from 8.20 to 8.95 but the kwacha moves from 5100 to 5105 to the dollar then it is the SA currency that is weaker.A strong currency is not very good for a developing country like zed and Mr Sata needs some lessons in economics before issuing some blind orders.A good central bank governor should never take orders from a president and that is why central bank governors are always independent of their appointing authorities.

  63. As long as the planes from Lusaka to South Africa, Dubai, China, India, UK etc are lighter on the outward journey and loaded on the in ward journey, the Kwacha will be weak. Zambians are consumers of Western products and not producers. Even the copper we boast about, we failed to produce it. Walitu nyela umukuba! We had to hand over to the Chinese and foreigners to increase production. Recently, there were several PF delegations that went abroad, let them tell the nation how much they imported and how much tax they paid. Kawimba and company, tell us!

  64. The President thinks that the strength of the currency depends on digits. So, if he ever heard of the Yen, he would swear that it is weaker than the dollar. He is also thinking in terms of the old pound shillings and pence when the Kwacha was 5 bobo and 2 kwacha was 1 pound. However, at that time salaries were also two nsixi. Coca cola was tiki. I don’t know where ba Sata was, but things have moved on Sir.

  65. DIPLOMATS appointed by H.E. MCS Namibia , Wendy Sinkala
    South Africa, Muyeba chikonde, Japan Ngona chibesakunda, UK, LtCol Nkunika, USA UN, Dr. Patricia Bota and Robert Mataka , Russia , Frederick Hapunda

  66. Sata should not comment on economic issues.His tone has always been very negative towards the economy thus the markets are still rattled and investors still weighing options.Since Sata became President, the Kwacha has depreciated by close to 10%(10,000 BPS). Much as a weak currency is good for exporters,it is equally unfair and inconveniencing to local Entrepreneurs who import much of their inputs for production(Bakers case in point) because input prices rise hence cost push inflation.Just wait for January CPI .The BOZ chief should try to strike a balance.

  69. am enjoying this. really! its like bemba govt. vs tomga opposition. good for democracy don’t you think so? just stop insults please. otherwise we zambians are a role model in africa and am sure our kwacha will strengthen very soon. ask the mmd thieves what happened when they fraudelently won the 2008nelections.

  72. YOU CHAPS WHAT ARE ZAMBIA’S EXPORTS OTHER THAN COPPER ANYWAY.I MEAN THAT THOSE MAKE A SENSIBLE CONTRIBUTION TO IT’S G.D.P?WEAK KWACHA CANNOT
    BE GOOD FOR ZAMBIA AS IT’S MANUFACTURING INDUSTRY IS ALMOST NIL.WE ARE
    AN IMPORT BASED COUNTRY.BUT AS MUSHOTA PUTS IT I LOVE IT EARNING MONEY
    HERE BECAUSE WHEN I REMIT 200 POUNDS WHICH I EARN DAILY IAM ALREADY A
    A MILLIONAIR PA ZED!!

  74. #71, For your information  British and the Americans are printing money like its going to run of fashion they call it Quantitive Easing and other lovely sounding names, most of the money in the US is mere monopoly money (from the game), the rate they’re printing money is no different to Zimbabwe just to sweep the dirt under the carpet.

  75. I am waiting to see when Dr Simon Miti will be re appointed as Diplomat  by HE Sata since the investigating wings have cleared him. All cleared chaps who were sent on suspension together with Dr Miti were given letters by Dr Mwaba the Ps MoH and have started working. Dr Miti have gone thru the due process of the law and deserve to be re appointed as Ambassador to Swaziland. Maybe he is not being appointed because he is NOT Bemba? Bwafya!!!

  76. # 74 Maxwell. When a country’s economy is burning up due to usually, world economic down turn as happened/ happening with major economic leading countries USA, Japan, and most of Europe, central banks of these affected countries have to cution the impact felt on their local currencies to avoid curreny errosion (inflation) and do so by injecting more money in the economy(Quantitative easing). However, its not mere printing large amounts of money per-se. This done taking in tindem with valuation attached to the currency.

  77. YES, i am a Police Officer and can confirm that Dr Miti has been CLEARED and has been a key State witness providing evidence against Kapokos and group, in the courts of law. If we follow the law, the gentleman is truly innocent and deserve to be a free man and can be appointed as a Dipolmat. He has NEVER BEEN arrested before or charged or prosecuted before in any courts of law. He is INNOCENT. BRAVO AMBASSADOR MITI.

  78. This Man SATA demanded for a report from Kanganja  a month ago, who he has fired, as well as a report from the investigating wings of Government. If Sata has the report which has cleared Dr Simon Miti why is he delaying to re appoint Him to the Diplomatic service? Let him follow the law he preaches, and be bold enough to take the right decision and appoint Dr Miti again as Ambassador. That’s the Law.

  79. he president has a point,just that he’s not up to date
    with what happening around he globe all he knows
    kwacha is the weakest

  81. It is the role of Govt, through the Ministry of Finance, to restructure the economy in an effort to strengthen the Kwacha. In South Africa Trevor Manuel is one ot the most respected personality for having structured that country’s economy. The World even looked up to Manuel to take over the top position of the IMF. There is an urgent need to broaden the tax base. Local goverments should re-introduce the “Hawker Licences” for traders who operate within given Local Council areas. Time to appease the populace who are largely consumers must come to end. The economy of Zambia must be export-orientated. The apples that have flooded Zambia happen to be the product South Africa’s drive to export its agricultural products and wines.

  82. i think mushota is not a normal person.when things are bad home,you dont rejoice you pig.you need home my friend ,who knows when the government in that country may declare you an illegal immigrant,we shall chase you to congo ,you think i dont know  your roots.
    dont say bullshit things you asshole

  84. If Sata keeps his big mouth closed, the Kwacha will automatically get stronger!

    When is this clown going to learn to do his homework? Or does he think that telling lies is part of the job of President?

  86. “The president has also sworn-in seven diplomats to serve in various countries as well as two permanent secretaries” – Who are these diplomats and to which countries are they being posted, anybody knows?

  87. Mrs Mwaba Kasese Bota was sworn in as Zambian permanent representative to the United Nations while former Works and Supply Permanent Secretary lieutenant-colonel Bizwayo Nkunika was sworn in as Zambia High Commissioner to the United Kingdom.
    Former Siavonga MP Fredrick Hapunda was sworn in as Zambian ambassador to Russia.
    Others sworn in were Eastern Province Permanent Secretary Chabota Nkunika and Muchinga Province Permanent Secretary Charles Kapembwa while former United Party for National Development (UPND) vice-president, Francis Simenda was sworn in as Zambian ambassador to Ethiopia.
    The rest are Mr Ng’ona Mwelwa Chibesakunda (Japan), former deputy secretary to the Cabinet Robert Mataka (Botswana) Muyoba Chikonde (South Africa) and Wendy Sinkala (Namibia).

  88. Can Lusaka Times put up a list and qualifications of people being appointed, especially that the government claims that they are not appointing cadres to the foreign service. Take time as LT and do your research on the appoinments made.

  89. The easiest way to strengthen the Kwacha is to start collecting $1.3 billion a year in mining taxes and build reserves of currency and copper or other metals.

    It all comes back to taxing the biggest industry in Zambia, the mines, instead of the middle class.

  90. This is a very article. I found a lot of favorable information from it. Thanks for sharing it. I would follow your posts closely. Good luck to you.

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