WORLD Bank country senior economist Gregory Smith says the appreciation of the Kwacha is a positive sign that will instill confidence in the Zambian economy.
The Kwacha has continued to appreciate against the United States (US) dollar, hitting K9.7767 at the weekend, and extending its bullish run for six successive days.
The local currency continued to show resilience with many financial experts in the country predicting a bullish trend over the next one week.
Dr Smith told journalists in Lusaka yesterday that the current appreciation of the Kwacha was a positive sign for the country.
“It’s a positive sign to see the appreciation of the Kwacha. It gives more confidence in the economy, but again we have to be careful and look at what is causing the rapid appreciation,” he said.
He was speaking shortly before a telecast media briefing by the Bank’s acting chief economist of the Africa Region Punam Chuhan-Pole from Washington DC on Africa’s Pulse, which is an analysis of issues shaping Africa’s economic future.
He said the appreciation of the local currency gave a bright economic outlook of the country, but called for more enforcement of austerity measures.
Dr Smith also said there was nothing sinister about Government’s borrowing so long as the resources were invested in productive programmes to uplift the welfare of citizens.
“If the Government is borrowing to invest, there is nothing wrong, but the caution is to borrow and use the resources for productive investments,” he said.
He said although investing in infrastructure projects had no direct returns, such investments were, however, critical in wooing investors into the country.
Meanwhile, Ms Pole has urged African governments to take steps in adjusting to a new, lower level of commodity prices.
“To ensure growth and social development, cities need to become less costly for firms and more appealing to investors. They must also become kinder to residents, offering services, amenities.
“All of this will require reforming urban land markets and urban regulations and coordinating early infrastructure investments,” she said.
She said that Africa’s growing urban centres offer a springboard for diversification and that there was need for better institutions for effective planning and coordination.
This, she said, could raise urban economic density and productivity, and spur the region’s transformation.
We will not hear the end of this story. This will be PF and Edgar Lungu’s campaign song for the next 5 Months. Brace yourselves.
It is acglobal phenomenon otherwise the PF would have told us already what they did to have this effect. Don’t praise fish for breathing under water.
Quotes:
1) “…It’s a positive sign to see the appreciation of the Kwacha. It gives more confidence in the economy, but again we have to be careful and look at what is causing the rapid appreciation…”
2) “…he said the appreciation of the local currency gave a bright economic outlook of the country, but called for more enforcement of austerity measures…”
3) “…if the Government is borrowing to invest, there is nothing wrong, but the caution is to borrow and use the resources for productive investments…”
4) “…although investing in infrastructure projects had no direct returns, such investments were, however, critical in wooing investors into the country…”
Now can you see the difference between a statement from someone who knows what he is talking about and…
continue…
Now can you see the difference between a statement from someone who knows what he is talking about and bachi PANTE PANTE ba ‘ECONOMIST’ HH? Very measured criticism and prodding of the Govt while giving praise where due. That’s the sign of maturity and being civilized!
Appreciation of the Kwacha is welcome. I care more about the lives of ordinary Zambians than I do about Politics. I just want to see a united peaceful Zambia. Stop the insults and divisions!!!
Just watch, it will drop in 6 days. Zambians in diaspora Keep your Cash.. Otherwise too much problems.
Yamba Yamba read between the lines and read his whole statement not one edited by Lusaka Times please. And mind you the man is a guest in our country. If he is brutally honest, your minister for information will label him a UPND cadre and threaten to deport him.
only to appreciate bcos we ar nearing polls time anyway dats goodnews nd ll see how far we ll go.
This bad news to some people.They always wish bad things to happen to this countries.
HH is here to condemn again as his tactics but they won’t work
The rate at which kwacha is appreciating is not the same with the currencies in the region hence no one should attribute the gain to global factors. This is purely govt efforts. The main reason I being glenco investments which I believe it’s only in Zambia.
before you messed up the kwacha, the exchange rate was at K 6.3/$. We want a concrete recovery improvement plan which should take us back to K6.3/$, not just glencore coz their investments were done as far back as 2012. This is not appreciation, we are just on track to recovery.
Imwe Yama kwati muli chipuba. You don’t even know what u talking about like yo fake economist president. Zambia is a mono economy dependent on copper. So, yo currency largely depend on copper prices..so who are u blaming…f.oolish
We know you are very unhappy with this wonderful development….prophets of doom. You were insulting hon kambwili for explaining the kwacha situation cos you don’t like him. He said once copper prices normalize, the kwacha will pick…thick heads
HH is the satanic person
DID THIS MAN GIVE DIFERENT BRIEFINGS TO THE POST NEWSPAPER AND THE GOVERNMENT VUVUZELA MEDIA?
PLEASE BA PF, TWAPAPATA SANA, DO NOT TAKE CREDIT FOR THE DOLLAR. WHEN IT WAS HIGH YOU CLAIMED IT IS GLOBAL, NOW YOU ARE TAKING CREDIT FOR IT AND SAYING THE PF IS WORKING, THIS TIME FOR SURE IT IS A GLOBAL THING. THE DOLLAR HAS TUMBLED WORLD WIDE. LOL
I can just imagine how UPND are taking such news. Thats why i always emphasized that they should concentrate on telling Zambians what they would do for the country instead of always reminding us what is going wrong only. Michael Sata had the ‘lower taxes and more money in your pockets’ slogan, what is HH’s?
They (UPND supporters) all like Kubweka here are feeling very sad and disoriented. Wait until June when all the solar hammer mills are pouring out bags of mealie meal in hundreds. The prophets of doom will scream communism and all sorts of rantings.
This government has worked very well except for inconsistent policy pronounciations. Finally they seem to be getting even that part under control. I for one have always said the HH phenomenal is simply presidential ambition with nothing to offer. HH is a rich and bored guy with nothing to do who set himself an ambition of becoming Zambian president, to create excitement and self actualisation for his own ego. Nothing much will change even if he became president.
Ati harms way, you don’t know what you are talking about. Has the copper price normalized for the kwacha to appreciate? mwe chipuba nimwe tata. Go back to school. If you want to go the kambwili way, you will be lost. Kambwili is a chief PF cadre and he feeds on political lies all his life
“If the Government is borrowing to invest, there is nothing wrong, but the caution is to borrow and use the resources for productive investments,”
EXACTLY! There is no one in the world who doesnt borrow when they have a strategy of making the borrowing as a point of departure. This is what our PF Government has been doing, to borrow for development which we all are now appreciating and making everyone have a sense of belonging to the improvement of the our economy. Only the bitter, envious and hollow Kachema and wife beater and Fat Albert the insulting gong are against this, because to them, anything that bringings positives to Zambians by President Lungu, its poison to them. ECL Nafuti nafuti, come 11 August. HH killed and buried.
HH said that he wants the kwacha to drop up to k5 per $1 now thats being stupid, silly and limited thinking. i personaly want the kwacha to be head on or per per $1. HH is a moron and he stinks of bull sheet.
Why are PF and UPND cadres quick to insult. Even when we get great news, animosity is the order of your days, I literally shake my head every time am reading comments.
Viva president Nawakwi.
There is no great news here. The Lusaka Times editing is quiet poor creating a wrong impression of what the man said.
It looks like LT and The Post attended the same event but had two Gregory Smiths addressing them. This is the Post report:
THE World Bank says the kwacha’s appreciation seen last week is a sign of Zambia’s weakening economy resulting from continuous trade deficits.
And the World Bank says real GDP growth is expected to remain subdued in Zambia because of “low copper prices, power shortages, higher interest rates and food costs stemming from the weakening currency weighing on private consumption”.
Meanwhile, the kwacha yesterday marginally halted its rally to trade in the range of K9.80 and K9.82 for bid and offer against the US dollar, with market sentiments on the future of the local currency remaining diverse.