GOVERNMENT says it will proceed with plans to rebase the local currency to strengthen the value to 1964 levels despite calls by some quarters to defer it. Meanwhile, Government says it will ban firms exporting raw copper as a way of encouraging value addition to the commodity.
Minister of Commerce, Trade and Industry Robert Sichinga said rebasing the Kwacha is necessary as it will lead to reduction in the cost of doing business; reduce inconvenience and risks associated with carrying large amounts of currency for transactional purposes.
Mr Sichinga said once the Kwacha is rebased, it is likely to become stronger against major convertible currencies, citing when the local unit traded at par with the British pound in 1960s.
“In 1964, our Kwacha and Malawian Kwacha were at par with a (British) pound. Exactly at K2 to a pound, this is because the currency was strong,” he said.
Mr Sichinga was speaking at the eighth National Dove Payroll and Human Resources 2011 conference under the theme “Operational Excellence,” at Lusaka’s Mulungushi International Conference Centre yesterday.
He, however, said currently the Kwacha’s value is weak trading in the K5,000 levels against the United States dollar while the Malawian Kwacha is trading at K167,000 against a dollar.
Mr Sichinga said rebasing the Kwacha will accrue huge benefits to everyone.
In January, Government approved the rebasing of the local unit and so far Bank of Zambia has commenced the process of procuring the rebased currency.
However, there have been calls by some stakeholders to suspend or hold the rebasing of the currency until next year due to uncertainties in the economy.
Some analysts have cited the rebasing of the Kwacha as partly causing the depreciation of the local currency, presently trading at K5,200 and K5,300 levels.
Commenting on the export of raw copper, Mr Sichinga said there is need for Government to promote value addition to copper, hence the move to stop the exportation of raw copper.
Mr Sichinga said Government is keen to meet one million tonnes of copper by 2015 with more jobs being created for the local people.
He said the country has abundant mineral resources such as emeralds, gold and cobalt and other semi-precious stones which require value addition and make meaningful contribution to the growth of the economy.
[Zambia Daily Mail]
talk talk talk. bla bla bla. That is what my kid says if you come without sweets
i agree with u, really too much of talk without results i wasted my vote big time…
OMG!!!!!!!!!!!! And this is the person we call minister of commerce? talking this junk…. its very sad mwe bantu.
Bob… sometimes its best to shut up. And this is Zambia’s top economic consultant. This country is now a JOKE
am yet to see tangible steps over those dreams or loose talk.
I believe you do not have to be an economist to realise that the cancelling of zeros on anything does not appreciate value its real value. Value appreciation can only come from expanding the economy and increasing the buying power of the currency with or without the zeros! I am now in total agreement with concerns out there, that bob, like his friend across the zambezi is senile or possibly insane. His theories show all the symptoms that none of the education he aquired previously has been retained in his brain.
of Course Sichinga, and there will be a human colony on the moon by April 2013…..
We are playing house (ukubuta) thats wats cutting here.
Look who is talking! Mr. Economist just shut up and get work started…talks will not strengthen Kwacha, you should know that by now………..
This fellow should be re-aligned to the Vendors’ Desk.
”to strengthen the value to 1964 levels”…..”it is likely to become stronger against major convertible currencies, citing when the local unit traded at par with the British pound in 1960s.” Hon Sichinga are you serious? How possible is that? You must be joking. I mean the current exchange stands at about US$1 = ZMK 5300.00 if you get rid of the three zeros you have US$1= ZMK 5.30. Is this waht it was in 1964? Whereas I agree with you that it waill be contribute to the reduction of the cost doing business I dont agree with you that it get back to 1964 levels.
Spot on, how does the it gain in value on rebasing it.this man thinks we are gullible.as long as we have no local production,exports and we retain forex,no appreciation ba Bob please. yaba.i think we dont have a economic direction. bIG TTTTTTTTTTTTROUBLE
This time he kept himself n check by not accusing MMD of printing fake K3 trillion? Your comment Bob contributed very much!
Strengthen to the levels of 1964? Does he understand the economics of the Kwacha going back to 1964 strength? Perhaps not even in his children’s grand children life time. First stabilise the currency first before you think of strengthening its value.
It is like Uncle Bob does not understand what makes a currency strong. This is basic economics or even book keeping sir. Rebasing does not add value to the currency validity and strongness. It is actually cosmetic and plays a bit of psychology on the local market and does not increase both primary and secondary national production. SIMPLE. My professional and practial piece of advice is, PLEASE DEFER the exercise you poor Uncle Bob. You belong to the UNIP old school of Economics. Read latest literature and think beyond what you read. We need economic think tanks not economic empty tins.
Failed employee, failed businesman, failed politician and now, materbating in public beacuse his aso wele is powerful!
Mr bean, please tell us if this is before or after the completion of the massive exodus of investors from the neo-communist Zambian economy to other ‘sane’ and more stable emerging markets like most of our neighbours (zimbabwe) included, east africa and Ghana. You are completely crazy. removing zeros to appreciate a currency? thats the logic of a 6 year old! DEC should investigate this guy, he got his degree from Matero!
This guy is a lier. How possible is it that Malawan Kwacha which is trading at over ZMK20 be buying Dollar at MK167,000?
From the comments made by Sichinga,its clear why they are in a hurry to rebase the Kwacha.It is to try o cover up currency depreciation cos to Bob a rebased Kwacha is a strong one.
Is this the economic consultant used by the world bank?? Nay..the understanding is warped even non economist can discuss better. A strong economy is on a number of factors anchored on production and export orientation!! This country is import orientated and non productive!! Not even bringing. He should go back to school and redo his ACCA!! Muletusebanya fwe ba ZICA.
An economic consultant who does not even understand the basics of economics…. Kwena Zambia nipwa
The man has a Harvard degree. Doesn’t that count for something?
He just attended some short term intensive programs at Harvard University.Just like we may say Morgan Tsivingirai is from Harvard after attending 3 month leadership related program.
He doesnt have any degree at all. He has ACCA and a diploma in some short course from Harvard.
I meant not even bringing a millions of donor funds (dollars) will make the economy stronger.
Hon Sichinga you have embarrassed Accountants- remember it’s a noble profession. First it was ZMK 3 trillion fake money and now this. Please stop embarrassing Accountants.
SIchinga, you are such a F********** ***** for an economist and worse off a minister. I cant believe thats coming from you. what do u take zambians for?
You do not even need to have spent one day in an economics lecture to know that this is complete insanity! How does removing zeros (essentially just hiding them!) increase the ‘real value’ of a currency? You can remove the zeros and even divide by 4 or 10 as a formula to rebase but the real value will remain at 5,300 to the US$ as the actual buying power remains constant or worse, continues on its downward trajectory! Value will only increase by increased capital injection into the economy (not donor aid btw) through increased investment, higher exports, balance of payments surplus, increased GDP etc. Is this really happening to our country people, from Mutati to this? I feel like we are all in a bad dream, please god wake us up. This is scary and cannot be real!
What an economist! This is junk. Please Let the president choose a better minister than this cadre
Mr Sichinga you are so wrong. The Malawian Kwacha is trading at MWK167/USD1 and not your MWK167,000. Have you already rebased the Malawian Kwacha for them – in your tiny mind? Also the Zambian Kwacha was never at par with the British Pound. Parity is 1 to 1 and not 2 to 1. What about getting yourself an education? Clearly accounting has not helped.
Can our country develop with such dreamers?
Robert, rebasing the kwacha wont reduce the cost of doing business. Neither will it reduce carrying a lot of money. If you used to carry 200 K50,000 notes you will be carrying 200 K50 notes and their purchasing power will remain the same so what are you talking about?
Maybe he can’t count past 10 (….well let’s say 20 if he’s not wearing shoes or socks) and gets confused with all the zeros?
And no value will be added
Bob is embarassing himself. I hope he has been misquoted.
Didnt he get the memo about the 11th commandment from the real vice president ABC? ‘Stay in your lane’ mister! Stop making statements on the currency as whenever you do it loses more value! Today it will devalue again simply because the international community will see that a minister in a key economic ministry has no idea about his role in appreciating the real value of the currency, or even economics in general! twapapata we cannot afford anymore shocking statement from you ba sebele
Shame to my president to having such dull ministers. This minister is misleading his leader and Sata will be schocked whent he general public will rise they voice in unizone saying things are worse off compared to RB’s time in two years time. this kwacha is facing a free fall faster than terminal verocity when an object is under earth’s gravity. Rebasing is not strengthening a current, is a sure way of saying our current has lost too much value hence we need to remove some zeros otherwise machines won’t be able to read or record the current, we are talking simple calculators, feul pump machines, ATM, by the way if one says 10pin he has already rebased the three zeros. Dull minister and blind followers.
I think this was meant ot be a 1st April F0.0L joke, but the minister is five days late.
oh we are about to go back to wellensic days 1960s.
the rebased currency won’t become stronger by the removed zeros, its value will remain the same Mr. Minister. What will strengthen our currency is being more productive in all sectors and firm economic policies. Value addition to our minerals is not enough, find investors who can make ZAMEFA like companies, convert Zambia not just into a mega mineral producer but a manufacturing hub. Give more concessions to such investors than those who just Mine.
The amount of notes to be carried when transacting will remain the same. If you carried twenty (K50,000) you will still carry twenty (K50).
Bob tends to over-simplify things at his own detriment!
this man is full of BS
Mr sichinga, go to Malawi and see for yourself what is cooking about the 167mk/$. IMF asked them to devalue to 180. They have refused and the consequences are huge. There is a parallel black market buying and selling at 190mk/$. The official system is bankruptcy with dollars. The country has run out of forex and it is tough to import. How can you even dream of stopping exporters? You must find a way of doing things.
This man is crazy!! How do you stop exporting raw copper when the country has no capacity to process it? Leave the mining industry alone! If PF govt want to manufacture copper products, the should ask Kambwili to set up a company that can do that and employ PF cadres to be the workers. Nobody is stopping them. I think this bunch we elected into power do not know what they are doing. What a mess!!
But don’t you think the IDEA is good?
@The Barotse Patriotic Front.The idea is good but not the way this minister has framed it. Problems in Zambia can not be solved by making laws alone. That is why this bunch of politicians will not solve our problems because they have a limited skill-set and will not think outside the box. You need technocrats and experienced competent individuals to tackle our economy and not these rejects from MMD. At the moment the previous govt is miles ahead of them except in the corruption arena. Lets wait for this outfit to start stealing too, once they have populated govt positions with their relatives and clan members
In the land of the blind even a blind F.O.O.L can be a minister
Rather a one eyed F.O.O.L can be a minister
This guys must be doing voodoo economics to believe the kwacha can be strengthened to 64 levels yet the market dynamics of today are vastly different from 1964.If you want to reduce the cost of doing business you devalue your currency.strengthen the kwacha.The fiscal policies,the politics and the over reliance on copper exports of the PF govt are just emblematic of further devaluation rather than appreciation.
The complexity of it is that Bob is ‘Asebele’ to Mr Sata equating that with ‘Dont kubeba’ mantra sweetened by war on corruption, spiced with fake print of K3 trillion with a dash of Kambwili = Current Zambia. To progress from here we need more hulla baloo news coming shortly. The economy and national development is not priority, lets wait and see.
Some people certainly qualify to be called ‘a jerk’. What nonsense.
It is nearly impossible for our currency to gain any strength with vigorous industrial activities and a leap in exports of finished and semi-finished products. Before they ban the export of raw materials, let them foster the growth of local industry, cut back on imports and incurr no more aid, or debt. Otherwise we’re all just blowing hot air.
whats this guys qualifications. anyone with his CV?
One of out top British Papers have confirmed that the Zambian economy is amongst the top 10 fastest growing economies in the world.May be because this is coming from a Muzungu source those of you with a complex might start to get a little bit lenient with the Minister.
Yaku yaku yaku iyeee!!! Ndelolesha fye!
I have no comments for these jokers and there administration.
People this guy is a Big liar. 1USD=167MWK. Guys are we safe with these people whom we have entrusted with the running of our country? Telling the nation a BIG lie in a broad daylight that 1USD=167 000MWK. How will our Malawian conterparst feel when they hear such nosenses. These guys are failures mweh. They are like a bad carpenter.
This is claptrap talk and an insult to the audience he was addressing…. rebasing shouldn’t be associated with appreciating the kwacha to 1964 post independence levels …this fella is stuck in the 1960s.
It’s times like this when you miss Dipak Patel and Felix Mutati; the highest calibre commerce ministers to have ever served us. Bob Sichinga has always been a clown since the ZCCM days so no point in commenting further.
Ok mudala uyu amba o itaya…he thinks we are kids to take such a usuesless statement… we do understand pricples of economics so he shouldnt think he can just tell us porkies and expect us to believe him
Sichinga needs prayers!He indeed is a sick man.In 1964 Zambia was using the pound sterling and not the Kwacha!If we have to go back to those levels,we must(Kwacha) be equivalent to the pound without rebasing!!How possible is it?If it was why rebase?For your information the pound is stronger than the dollar which is his reference currency.Another point is that the Kwacha was introduced in 1968 at K2 to £1.Please Mr Sichinga ,dont mislead Zambians.Now i know why Chiluba did not appoint you anywhere in government in 1991.Your understanding of things is warped.God save us.GOD BLESS ZAMBIA.
When wise people told you that this Donchi Kubeba business is going nowhere, some of you hurled insults at them. Look at how this bwana minister is flunking basic economics. Yaba! Pass the popcorn please!
Lost confidence in him, he makes things sound nice but never works towards them even if you gave him an opportunity he never takes it.
He wants to take us to multi-currency. US Dollar, et al. Yeish!
Its now becoming dangerous to wait for the rebasing of the kwacha for it to gain.Whats happenning with those in government?
Bob, I thought wali sambilila ukunya. Rebasing a currency does not make it strong. Think of how much the kwacha lost in percentage terms since 1964. Are you going to regain the 6000% it has lost by increasing copper production? Even if the price of copper went to US$20,000 per tonne you will still not regain to the level of K1 = 2 British pounds. Rebasing is just for convinience. Pse tell the people the truth.
Bob Sichinga’s loud mouth is exposing his ignorance on concepts and principles of economics. He has exposed his lowest grade of education. Sichinga must be relocated to one of the most accessible display cabinets at the Livingstone Museum with an inscription stating that “Bob Sichinga was the Most ill-nformed Minister in PF Cabinet (Sept 2011 – Aug 2012)”.
Yes and we can see you are reversing everything to the 1964 mode so far. Sad.
Bob Sichinga is a loud mouth. Too clever for nothing and has a below par understanding of economic issues who has high-jacked the good will of the PF Government.
Mr. Bob Sichinga, the Kwacha was introduced in 1968, how can it be possible for it to have been at par with Pound in 1964? In any case, 1:2 is not parity by any stretch of the imagination. And your intention to ban exports of raw copper will only add to the uncertainty and panic you have been causing to the Zambian economic sector – one of the reasons the Kwacha has been losing strength. Zambia and indeed any other country in Africa (South Africa included) has no capacity to process the amount of copper being produced in Zambia. Or maybe you intend to start stockpiling and creating mountains of copper which won’t be of any use to anyone. Can Mr. Sata please shuffle this man elsewhere – he’s bad for Zambias economy.
This man sees things, if you know what I mean!!! He once saw K3 Trillion printed by MMD and now is seeing ZMK at 1964 value. Awe mwe, twaliiletelela naba PF.
HEMCS, we know you read this, Please send this man to diplomatic service, we know he is your sebele but this will hurt the economy, hurt us your people and your own legacy (if you are interested in leaving a mark on our development). Drop him and perhaps ABC and get and economic powerhouse to steer us out of this almost certain economic catastrophe. Also get an economic advisor of steel to complete the iron-clad trinity. Dont be afraid to dissapoint you cadres, you owe them nothing right now, because you are everyones president and the economy is your priority. They will thankyou in the end. Please listen to us bakateka, if you fail we will all suffer, its in our interest for you to succeed. Please please please forgive our angry rantings sometimes but we are very afraid right now, sir
Iwe Sichinga, the Malawian Kwacha is stronger than than the Zambian Kwanch, it is Trading at 165 Malawi Kwacha to 1 USD. Get your facts right.
Am told this man is part of the think tank of PF….
Chiluba never so any use of him… Mwanawasa did not even want him near him
Banda (an economist) told him he was useless… and could not contribute anything useful to the country
UNKWA thinks he his a genius
WE WANT ACTION, DON’T TELL US WHAT YOU WILL DO. WE HAVE HEARD ENOUGH OF THESE PROMISES.
MCS, perhaps get fundanga as the economic advisor or even finance minister sir, we will all think you are a magnanemous leader who puts our countries interest first. Consider Miles Sampa for commerce minister,..I am certain there are new faces from other up-to-date practical economists you can pick from for economic advisor – even Dr Kenneth Mweenda from world bank new york! twamipapata bakateka besu, batila amano limo yafuma mwifwesa ya ingila muchulu, we know you may see things a certain way but sometimes more heads are better than one
The guy thinks debasing is the same as strenghthening the kwacha…. Komboni Tarven Economist!
I miss Chama Chakomboka…..
If PF does not act now we are in for it…………. Bob should be replace with all due respect….he seriously need some management courses for Directors that are offered in various Universities….. am PF supporter but this is just silly….. he is paralyzing the debate of the economy with such utterances
# 55 Umchini Wami – LooL!! CHAMA CHAKOMBOKA was by hundreds of miles better than the entire PF government put together. But how Michael Sata could have Bob Sichinga for a Minister of Commerce is really baffling. What will really do me a favour is if these Ministers can be told to just shut their a.r.s.e.h.o.l.e.s up, it will save some of us the embarrassment and irritation. I blame all of you who put PF in government, and believe me you will suffer and some of you may not even live long enough to see 2016 because of your poverty. Just watch. The real suffering has not even started yet. Just imagine what the world is thinking of us today, with a screaming headline coming out of Zambia like this.
I agree with your comment. Comments such as the one this minister has made hurt the economy severely. People should not wonder why their currency is losing value when such minions are steering the ship
Sichinga,You must remain quiet if you have nothing to say.The Pf must recruit Felix Mutati or Depak Patel to run the Commerce ministry otherwise the country is in trouble.
Dollar
Stick to your Ministry Hon. Minister which is Commerce, Trade and Industry. At this event you should have taken the opportunity to comment on how the deliverables from the conference would benefit industry and Commerce in this counrty. That is why you have technocrats in your Ministry who should prepare you to make such relevant comments.
To go and talk about raw copper (mining) and exchange rates (finance) is not your mandate, please stick to your brief Hon. Minister and you will avoid controversy by making un researched comments!!
Bob dream on.
I thought that Bob was supposed to be the brains of the party? Once I had finished reading the article I started to wonder about the authenticity of his credentials. Kwaliba sure? These are basic freshman year principles of economics. Now if this is the economic policy that we were waiting for from PF, then it seems that PF is set on copying and pasting what MMD had already put in place. They’re trying to dupe the unlearned into thinking things have gotten better by presenting them with a “strengthened” kwacha, a new province called muchinga and a renamed international airport. We need a renaissance in Zambian politics that involves the coming to power of brilliant minds that are out to make a real difference.
This guy seems not to have “Jaw-Brakes”, just says what comes to mind – “Proof, is said to be in the pudding!”, & NOT IN HOW MUCH YOU TALK ABOUT IT!!!!!!
Guys I am convinced that we may be looking at some sort of early stage demencia, I cannot believe he has forgotten basic economic principles taught in the first semester of any respected business program! balwele aba beleleni ko
you right to says what you want but of you are bit over this because will cause problem to the money you stole when you were in mmd govt .
ba Lusaka Times..you Lie!! I was at that Seminar and I listened to Bobs whole speech..he didnt say to the “levels of 1964″…Report facts. Dont add what was not said.
From Zambia Daily Mail. By NKOLE CHITALA
GOVERNMENT says it will proceed with plans to rebase the local currency to strengthen the value to 1964 levels (Bob Sichinga). Who’s the liar now?
i miss ukwa
Sichinga, this is too much fooling on us Zambians. Even if Sata is your Sebele you cannot get us this far. i.d.i.o.t
I have not seen any single comment appreciating this man. This shows how mediocre this man’s thinking is. He is hyper for nothing and wants to show that he is learned. I hope he reads these blogs so that he knows what Zambians think of him. Shame to this so called economist. I am sure professor Seshamani shakes his head in dis-belief.
I thought Chama Chakomboka had died, when did he reincarnate. I am amaze at the level of economic understanding coming from government minister. At first when the PF government in the above statements were funny, but now it is really getting seriously concerning. What exactly did Zambians elect, clowns?
is that what kaunda has tought you. we know you cant all think and plan on your own, that is why you are carrying kaunda as a chola boy every time to keep teaching you. am tired of these guys now flick
Mr. Chama Chakomboka was the man, ZNBC evening news was never the same…always used to look forward.. he was a “new broom” as he eloquently put it!! LOL
You see alot of money has been put out of circulation by the MMD chaps (burried) & some more fake kwacha was printed to bride voters which is also in circulation, when the kwacha is rebase gmvnt will make sure all the fake money & the burried will not been in use hence the kwacha can gain its value for sure.
The baning of export of raw copper, let me give you an example…. do you think buying or selling a car with no doors, tyres, windows & lights can be of the same price with a car that has everything? No
So when copper is been exported in a finished state it will have more value that its been exported currently.
e.g jean material= less price
:-w
On the eport of copper, when are we going to stand on our own?
Remeber that all developed nations passed through thise stage. At that stage, we looked at UK, USA….. as developed. What can stop us. Are we not educaded enough?
The kwacha can be rebased but we need to be self depended on a bigger percentage. We should produce more. And import less.
Malabishi!
@Pippa – now that’s the one that made laugh hardest. Bless your heart.
…made me laugh
We have removed all Zeros from our budget home! and guesss what it has become stronger! hehehe! I never knew that zeros could do such maggic!!!!
@84 The GUY
Whatever vegetation you smoked or whatever your doctor prescribed to you has disoriented you greatly, please keep away from electronic devices. That type of talk can make you a misleading “go to” economic adviser at your local Chibuku Tavern in Katete, nobody would be fooli$h enough to still keep money buried underground, even our Asian Shopowners have converted their money into dollars and those MMD guys have had enough ample time to convert the funds into another currency or into investments for safe keeping.
PS. Please tell us what you are on as it is a very long weekend!
of all the comments here on Mr Bob 99.99% speak negative abt this. what does it mean?
How can an accountant reason the way bob does? Help me understand, did’nt the ACCA of 1972 have a component of economics or has bob just forgotten what he learnt? What he says of let can only be associated with the school of UKWANOMICS and not Economics.
Hi every-blogger,
See the disclaimer before you type anything on this blog.
I would suggest that LT give us video evidence of some of their reports.
I see people at times end up commenting so badly on something that is not reported correctly in the first place. It is likely the reporter here was the one who did not get the Malawi exchange rate correctly. I have read news from reporters that come from something related to what I do but the reports are at times so wrong.