The Patriotic Front government has been challenged to take concerns on investment perception seriously. This is as a result of effects the development is having on the country’s currency.
Projections are that the kwacha may depreciate to as much as 5,700 if little is done to address investors concerns. Financial Analyst Mambo Hamaundu has advised government to deal with the negative perceptions created arising from reversal of the Zamtel deal as well as pending investigations into firms like ZANACO.
He has expressed worry with the numerous contradictions from senior government officials on important economic fundamentals. Mr. Hamaundu has however urged the state to facilitate increased productivity as a way of sustaining economic growth.
Meanwhile, Mr. Hamaundu says the kwacha performance has been flat thus closing this weeks trade around 5200 to 5300. He says the supply of foreign currency has reduced in view of restrictions investors are feared to be having on proceeding with the investment.
MUVITV
This country is headed for Doom, i can proudly confess that MMD was far much better than this group of co boys called PF DONCHI KUBEBA. Sata N uv brought nothing bt shame to this country may God give u your reward accordinly…
Just wondering are you in Russia or Ukraine? I thought GRZ sends students to Russia?
Worrying news indeed. We need to address this quickly — we have more than enough qualified people in Zed. If need be, a quick call to Caleb for advice would work too.
Spot on. I know one potential investor who has pulled out because of the same. His team was in Zambia headed by a Zambian who was suppose to relocate to Zambia to handle the investment. They have since left because of the same concern.
Just this year our import oriented economy will choke beyond imagination. Prepare to see our Kwacha falling to K10,109 for US$1.00. I challenge any PF kaponya here to intelligently counter this with tangible PF economic intervening measures being devised which Zambians are yet to see. Under this communistic utopia regime our country is heading for some economic crisis too ponderous in magnitude to reserve without consequences of some social, economic and political damage. Unless President Sata quits his inoperative community socialist dreams and open up to rational actors among the intelligentsia, our country could be worse than the failed Zambia of  80s-1990.Â
To divert his attention from PF lamentable failure, he wants to open up a fight with civil servants after his accusing fingers on the past administration has failed.Â
This is why I keep saying that we should not point fingers at past leaders. In this case, there is no shame in asking RB, Caleb, Magande for help … all in national interest, of course.Â
The reserves left by MMD are very quickly running dry. PF needs to get their act together. We all know they don’t know what they’re, but we’re all here to help. Call on the advice of those who have proper experience.
No shame in that.
They have failed!!
I think the pf lead government has moved to quickly in making changes. They also appear to be short of ideas and are unpredictable on several matters. Mr Winter Kabimba is also behaving like a minister without portfolio commenting on matters that are before cabinet. When asked about any question he simply refers to the PF manifesto,but has my grand mother lead this copy? Mr Kabimba should know that we the Zambian people did not vote for the party manifesto but for President Sata. We believed in him and not the so called manifesto. Mr Kabimba should therefore not deceive himself by stating that we believe in him. We only believe in President Sata.
The MMD guys were impressive. Do you remember how RB handled the world recession in 2008 to 2009.It was fantastic. What we are seeing now it is chaotic
Donch Kubeba. we told you to vote for better lives not for empty slogans which make no sense at all.Next time think twice before you cast that ballot
Who let the cobra out!!!!! tsee…. tsee ..tsee..tsee, Who let the cobra out!!!!! tsee…. tsee ..tsee..tsee
Imwe osa sabaila chabe offer credible advise 2 th government.Â
the gvt have advisors who get paid..why offer free advise. they should have had a plan before assuming the gvt.
Introduce a first degree clause for presidential qualification for the good of the country.If a junior public officer need to have a first degree to hold certain positions why not the very important office of president?
Let the corrupt investors be very very scared. They can take their dirty money elsewhere.There should be dignity even in poverty. But all you opposition crooks will be shocked when the economy starts going up.
All you crooks critising govt were the same chaps who attacked Great Kalu left right and center,but he suprised you when zambia lift the afcon.
@ 12 you spot on.If you analyse the performance of our past presidents those with formal education come out tops: LPM (law degree),RB (MBA),KK(Teacher).Now compare their performance to MCT and FJTC(MHRIP).
I assume you want the chikwakwa degree holders to rule us,anyone can get a degree these,especially ifikwakwa.
What is good for the first time in zambia is that we are able to criticise the goverment left, right and centre,and this might end up working for mother zambia.Lets continue criticising and don’t make the same mistake we made in 1991.Viva mother Zambia.
This news is not even worthy commenting on especially that it is coming from a UPND sycophant. Which credible investors do you have in Zambia apart from those running mines? Indians and chinese? Which of those companies ruining mines have closed? The only reason for currency depreciation is the much awaited rebasing.Â
I feel pity for the young man. He is lost in the forest of lies. Stupid *****. He used to lie that I was holding sadam at state lodge. He lied that I had arms at Sindamisale. My son Panji is so upset with this stupid ***** sata. He should immediately tave over to control things. Where are you RB? Please dont leave MMD presidence. we need you back in 2016
@ Mark 2- advice to who? The government doesn’t even listen to themselves! As for Kwekwe, you are stil a dull, blinded, uncompromising cadre I see. Wait until you are singing donchi kubeba wearing animal skins and praising the PF government for bringing back barter trade and ingots!
Word!!!!!!!
there r more important issue zambia needs to address the jst making new districts, provinces and other petty issues like reshuffling ministers en restructuring ministry, civilization is different from experience, its not about the tribe but calibre of president
This is good for me who earns US$$$. It means more money in my pocket. Viva Pabwatooooooooooooooooooooooooooo
We need this Kwacha to drop to 7000. Viva chi satana.
# 15 kwekwe you have made me laugh. so the solution to a weakening kwacha is is rebasing. ha ha ha kikikiki. i fear the president will agree with you. perhaps, that is why he never talks about the economy. please don’t love your PF to an extent that you ignore what is purely an approaching calamity. rebasing without supportive production and exports will result in the return of the zeros. Kwekwe MCS is reversing the gains of this country and slowly we’ll become zimbabwe.Â
AM SURE THIS IS GOOD NEWS TO SENOIR CITIZEN…LOL
very sad indeed and yet kabimba was quoted as saying mmd left nothing to write home about. what dullness at least they left the dollar at 4800 and usd2billion in reserves we shall see what you would have added by the end of the year.
This financial analysis if flawed and biased. But it appeals to those who are still licking their wounds and egos. Other countries including the United States go through currency fluctuations and some of the reasons for the fluctuations are external.
My point being WHAT QUALIFICATIONS BEYOND BEING BITTER AND TONGA DOES THIS SO CALLED ANALYST HAVE THAT WE SHOULD LISTEN TO HIS CRAP? Put some credibility to support your statements, a track record of some sort other than that you looked after a bunch of cows in the bushes outside Mazabuka
be wise mulenga and jelita. fo how long shall yu hate innocent tonga bcoz of yo ancle sata na’s failure. think wise stupid.
I am not tonga but I love the tongas; they are principled more than most of us. They look very simple but are rich. I think it is usually envy that makes people hate the tongas. I will agree with anyone who says the worst tribalist are baembas. Ask how many bembas try to even greet in any other zambian language apart from their bemba. Tongas speak nyanja, lozi, bemba etc if need be. What about our bemba friend-awe mayo!
#22 dull *****, motha fuker
Ignorance sometimes is great. Ladies and Ladies, the issue of investment is all about “perception”; let those that are perceiving Zambia as a “no go area” for investment leave. One day the currency will stabilise. In my own view, the demand for hard currency stems from basakala trying to change their ill-gotten money as quickly as possible before thing change. Any normal person cannot condem a father who rightfully grabs what was stollen from a family. The best investor is you and me, the ZAMBIANS. If you keep expecting that someone else will develop this country for us keep dreaming. Keep asking yourselves, how many jobs have you created in a year? Typical Africans, no trust in our own systems, too much trust in foreign investors whose only interest is super-normal profits.
The chaps sold an institution for a song; and you still expect that to remain a normal thing because of the “currency exhange rate”? Things are re-adjusting, and the worst is to come, but resillience will emerge as soon as the government stops “yapping” for the sake of “yapping”. This is what is causing poor perception in the business world. As soon as government manages to get enough taxes from the mines, as soon as the forex starts trickling in, the rate will stabilise.
Market perception is very important. The government needs to create an environment where ambiguity ceases to be the case. They need to come up with one coherent message on what they intend to do on economic affairs. As for the Kwacha I personally see this as a short term depreciation. People should remember that the currency is paired with the dollar. Last time I checked the USA economy seems to be doing better hence the demand for more dollars and less other currencies.Â
Now this is worrying.
#20, Global Citizen.
I don’t know why I have made you laugh. But I want to remind you that when a currency is being rebased, investors tend to develop concerns on the aftermath. Right now they are busy buying dollars and sending it out.Others like Indians and Chinese, will buy dollars and keep in their homes. Rebasing to us Zambians may mean nothing but foreigners will always tend to panic. The news on rebasing has contributed alot to the stability of Kwacha more than the Zamtel issue, which in my view doesn’t even make sense.Â
rebasing  maybe ok and i don’t have serious issues with it. it gives the semblance of stability. but rebasing does not mean a good economy. even if we dont rebase the kwacha, but we increase our exports, reduce our imports the economy will be good. u made me laugh because you are suggesting that the kwacha is nose diving because of the planned rebasing. come on you can’t be serious. have you even read what experts are saying about the raising inflation and the fact that  their is fewer foriegn currency coming in than going out.
When are they chopping off the zeros?
I am afraid it will become an annual event, ‘the zero chopping festival’ untill we switch to USD like our collegues in Zim.
@ Me 27- They are creating a Ministry of Removing Zeros soon! Wait and see!
During RB’s reign Zambia was awash with foreign currencies because it was a free for all situation, anyone could bring in their dirty money and do whatever they wanted without restrictions hence the so called good performance by the past regime. Until Africa starts to innovate , invented and manufacture to compete with their erstwhile masters our economies would always be held at gun point. There were absolutely no good policies by RB & co to thank for the stable currency during their tenure, even now if PF were to go sleep and allow every Jim and Jack to do as they please the kwacha would miraculously bounce back as if nothing happened. Our economy is made up of egg shells, its too small to be stable in real terms. Forget bloody policies just wrap bloody Chinese in cotton wool.
you are talking a lot and yet you have not said anything looks like you don’t understand how the investor perception works in a high risk country. the only way you can know that you have bad governance and poor policies this through investors they are very sensitive
Msana Wanzili comfort yourself, but very soon, even you ars* lickers will feel the bite
#29, I suppose you feel ashamed to read through your own post. How low does arrse leaking have to get,sir?
I was warning of you people of teh acts of this government. Foriegn investors are very important for any country still it is not too late they can call back the Libyans sit on the table and talk. Give foriegn investors confidence. Let be gone be by gone and see nothing adverse in the futire. This is for me the only way to put the country back on track. Leave the old school of snatching and come to the modern world of negotiation.
maybe this is why Mr Fischer has been invited to sort out the economy.:)>-
 This hurts the local business men not the foreigners. as it costs more for us to buy dollars using the kwahca.  to put it into perspective 6 months ago one needed 10 million kwacha to buy $2000 now it costs 11.4 million kwacha . this means it will cost more  for a zambian to do business outside the country,
this is the reality that people have to deal with  on the ground. task forces, midnight raids, cabinet reshuffles  are useless if  at the end of the day life is harder for the common man. it is issues like inflation, exchange rate, cost of doing business. e.t.c that make  big differences in people’s lives. and pf is not doing much to address the real issues.
more money in your pockets! i think not!
Shame on the Gradde 7 Muchinga president and his illiterate Chikwanda
Many of us with an interest only in the well being of Zambia and its much needed development did echo such fears while the empty tins with only PF propaganda on mind where blowing there vuvuzelas rather loudly that “Zamtel for Zambians”. we can for recognition of the rule of Law and due process but the noises continued. It is easier to destroy than to build and the problem will remain in the fact that Sata will not look at the good things MMD was doing and carry them on but change things so he can be seen to be “progressive”. However, he is firmly in UNIP mentality and that is no doubt regressive.
@28, For your own information managing cows and indeed any other related animals is equality important and if anything it is crucial. In case you did not know it is cold LIVE STOCK management and stock markets got its name from Live _stock. If you think am jocking ask ZAMBEEF who are managing their company better than the PF is managing ZAMBIA LTD
Zambians don’t panic the Lord has blessed us with resources It’s just for a season the so called investors will come. I for one believes some money that came in the country was brought by crooks .Viva Mr President we are behind you sort the crooks out and clean the system
So should we be held to ransom by investors, who are dealing unjustly?
Did i not tell you?  I will  have the last laugh while i enjoy a bottle of Victoria Bitter.
By December 2012  the Kwacha will be  6600  anyone challenge me??
Dont Kudabwa
#48, No sir, it shall happen, all the conditions have been fulfilled within five months, sorry within 90 days.
**==
Imwe guys kwacha flatuates a lot. But true PF should start addressing this issue. The investigation of zamtel is welcome but I think PF went too far when they touched zanaco. Guys I zed stop drinking too much n become productive cause foreigners will not develop Zed. Once we develop it to half a decent economy then foreign investment will start comming in. So country men put yor work clothes on and lets wrk no stealing though
Good lesson from god someone even warned u that u end up voting for a stick if u vote with ur emotions and u did just that
It’s what YOU can do for the country NOT what the country can do for you.
The good question I have seen on this blog is: How many jobs have YOU (Mr. blogger) created this year? How much wealth have you created for the COUNTRY? Where is your investment? In bottles Victoria Bitter? You guys will be waiting for good investors until kingdom come. If you don’t DO IT YOURSELVES even the little that you have will taken away. YET you have so much!!!
I am disappointed that the Kwacha is still at K5,200. I think that PF are not doing enough to panick the infestors, PF needs to create a stampede. As a USD earner I want the Kwacha to get to K10,000/USD very quickly. It would be great if it then went to K100,000 by 2016 even after rebasing.
You do not need a PHD to have figured it would moths ago that the Zambian Kwacha was going to depriciate. This has been the case even before PF got into government. The Kwacha will continue to depriciate this year, it might even trade at K7,000 for US$1 by the end of the year. RB did not save us from the 2008 recession, it was our economic links with China and other Asian countries. Wait and see what will happen when china begins to crumble and copper prices begin to decline. These are things that Sata and PF can not control but deal with. Those who are bleming PF or Sata do not understand what they are talking about.
The IMF are on the way to meet with the government over all these developments. Mr Mwanawasa’s government signed agreements with IMF and World Bank which they had to honour and which RB had to continue and these included the sale of Zamtel and Zanaco. Why do you think the Zanaco issue has gone quiet for now? You can all brag about our zanaco and zamtel and talk about them being sold for a song but until you see the agreements you will just be fooling yourselves. Mr Sata could not even appoint the Governor without approval from IMF and World Bank! That should tell us a lot about who owns this country at the end of the day!
Ba Muta,(#57) the Chinese are still here and the copper is selling handsomely. Why then this nose diving of our Kwacha? The is that the govt has not yet put in place deliberate measures to guarantee investor confidence. Who will put money where he has no assurance that his investment will be safe? Even the political stability we have been known for as a country has disappeared so fast. This govt is already tired of being a ruling govt. I think PF is a natural opposition party, they miss the oppsition where they can talk anything without being held responsible.
The true investers for this country is you and me.let us work had and develop this country.
has the president said anything on the kwacha poor perfomance or maybe the minister of finance has released a statement. Garry nkombo you need to ask the minister in parliament. UPND you sound sensible in parliament.
Hahahahaha most Zambians puzzle me, a poor currency must spell doom? No it doesn’t! Reduce on imports or buy locally! The mines are smiling!
what do you expect to happen when senior government officals including the president and the minsters keep telling people that the money circulating in the country is fake!!!!!!!
well i say those that are still supporting the pf on this one are just as foolish as the leaders you voted into… These people of yours are destroying the economy, and what do we get as good news, corruption fight, and you still want to put the blame on mmd? MMD s past finished long time back!!! now is now!!! Why do you think george bush is not being blamed for the america economy downgrade when he actually caused it, but instead obama s the one suffering… Now is now!!!! Now i believe mmd would have done better than these guys…this is bad