A financial expert says the introduction in of Statutory Instrument number 32 of 2013 has marked a return to foreign exchange controls in Zambia.
Over the weekend, Finance Minister Alexander Chikwanda announced that he had signed SI 32 of 2013 aimed at monitoring balance of payment in a transparent manner.
The new law applies to financial service providers licensed under the Banking and Financial Services Act, and importers of goods or services exceeding 10,000 US dollars or the equivalent in other foreign currency.
And any person, who contravenes any provision contained in SI 32 of 2013, will be deemed to have committed an offence and is liable, upon conviction, to a fine not exceeding one hundred thousand penalty units or to imprisonment for a period not exceeding ten years, or to both.
But Maambo Hamaundu said although government keeps denying that Zambia has returned to forex controls, the new Statutory Instrument has effectively reintroduced forex controls in a limited fashion.
“For me whether they accept it or deny it, what we are seeing now is a return to foreign controls albeit in a limited manner,” Mr. Hamaundu said.
He said, “You have provisions in the SI that limit the cash amounts that people can withdraw from a financial services provider to US$ 5,000 per month. We never had such restrictions on cash withdraws previously and that in essence is a control.”
Mr. Hamaundu added, “Many of us did anticipate that government was by and large going to introduce some measure of foreign exchange controls and a quick glance at SI 32 shows that there are controls, they have introduced foreign exchange controls although in a limited fashion.
Mr. Hamaundu explained that the new law has also come with a lot of paperwork required to be met by all exporters of goods and services which might add to the cost of doing business.
“All those forms requiring to be filled will bring administrative challenges for most businesses,” he said.
Mr. Hamaundu has warned that the new Statutory Instrument might have long term negative effects on the Zambian economy.
He said foreign investors will opt to sit on the fence and not to commit huge financial resources in Zambia because of the new restrictions.
Leave your pounds and dollars outside your chicken run. Anyway you to declare your money. we do declare when entering and leaving these countries?
so what if they are controls?
Every country has controls on inflow & outflow of cash, goods and services.
Why should this be viewed as strange to Zambia? our financial system is too porous such that even western world retards exploit them
Your friend saasa didnt think so.You are the
same people misleading the nations.This things is being done in other countries.
change is difficult to accept,but its mostly good for the majority… times are changing,please,lets change with it.
Just go and feed your family you retard!!!
Real Patriot I forgive you…mostly,people display their shallowness when they can’t defend their opinions with facts.If you have something to say,just drop your comment,don’t show me how uncivilized you are.Lets mind that we are all pipo with feelings.We are all trying and hopping for the betterment of mother Zambia,so lets show love and companionship to one another.
Mr Hamaundu is not really and expert but a UPND stooge.The SI 32 is there to regulate not control the movement of Forex. The Pf Government has seen that Zambia very rich with natural Resources which the local people have not benefited on a large scale.This government must be given a pat on the back because they are really serious to work for the Zambian people.
VIVA SATA and PF governemnt.
Some people cant see anything good with this Government………..dont we declare our money when leaving and entering these countries kansi? let them declare theirs too when entering or leaving our beautiful country.
Sometimes i wonder if some of these people are even Zambians because they always seem to be prepared to fight for foreigners at the expense of our country. This is done in civilised nations and no one has an issue with it but here controls are viewed like cancer, just like sim card registrations.
lets have more debate of this to make informed decision. a common zambian will need more eduction on them matter. otherwise we not sure whether is good or bad
You can only complain if you are not a patriotic citizen. Zambia was one of the few countries that did not have restrictions, in truth if a country is to develop it has to monitor and restrict externalization, its been long time coming, try doing that in a so called “backward country” like SA and you will regret until kingdom come.
Are you telling me Sata is also bringing back S.I.T..ET ?? maybe some of you are too young to remember them. they are the ones the built that office DEC is in and they started ACC …
Are you telling me Sata is also bringing back S.I.T..ET ?? maybe some of you are too young to remember them. they are the ones that built that office DEC is in and they started ACC …
This is good government policy. Hamaundu is wrong and does not see the whole picture.
My basic understanding of economics is that forex controls results in the growth of the black market, counterfeiting of forex, poor investor confidence (due to lack of guarantee on owership of your own money), unemployment, poor industrial base as no one will be willing to commit their capital in a market that has too many administrative controls etc. While in the short- term, the measure will stabilise the fluactuation of the exchange rate, thereby the kwacha appreciating, the bigger picture as indicated here above is clearly negative as a result of the SI in question.
What you critics are failing to answers is where or which country except for zambia does not control the out flow or in flow of money.
.when i was working in botswana, i could only sent a limited amount of money to zambia thru western union because that was a botswana govt law
When i was in south africa in january, i wanted to sent money to tanzaia when i realised i had not sent enough to buy aluminium when i was in zambia. You wontbelieve ths paper work i went thru.
When my zamian friend who live in kimberly was found with money that 10000 rands at the airport on the way to zambian,they confiscated the money above the 10000 allowed.
So who is this hamaundu to think zambia is doing the wrong thing.
Why dont we hear his complaints in botswana or SA?
VIVA CONTROLS ITS OUR MONEY.
I have like all the debates on this topic. Thanks for you high level debates. No insults so far on this page. WHY the kapoyas do not understand this….and they only cross boarder illegal or hiding under the trucks.
CHOA
I HAVE SPENT MY TWO YEARS HERE BUT I CAN ONLY GO BACK WITH 10 000 DOLLARS. WHAT I DO. BUY A BIG VEHICLE.
I don’t even want to comment on this article. I don’t think this guy is even a financial expert who has been exposed to how the world economy works.
I’m just an Engineer who has moved through so many developed and developing nations. I have seen these controls.
Gentlemen, there is no free market economy existing any where on this planet earth at this juncture. What kind of experts are these?
This is a good introduction, but the government needs to tighten security checks at the Airport. People are able to draw ZMW as much as they want then buy USD and walk with it outside this country. The law would still have been circumvented. This is something the government need to seriously look at urgently in order for the law to be effective.
This is exchange control. We have had almost all payment to foreign suppliers and investors delayed by at least 2 weeks for trivial reasons e.g. “loan document not long enough”! This is certainly one of the most harmful laws for Zambian growth this year.