FOREIGN RESERVES VS EMPTY TABLES: ECONOMISTS DEFEND BUFFER, CRITICS DEMAND RESULTS

FOREIGN RESERVES VS EMPTY TABLES: ECONOMISTS DEFEND BUFFER, CRITICS DEMAND RESULTS

Zambia’s growing foreign exchange reserves have become a major point of political and economic debate, with government officials presenting them as evidence of economic recovery while opposition leaders argue that ordinary citizens are yet to feel any meaningful benefits.

The debate intensified after government highlighted the country’s improved reserve position, a development viewed by economic managers as critical for maintaining currency stability, supporting debt restructuring efforts, and safeguarding imports of essential commodities such as fuel and medicines.

However, critics have questioned the relevance of celebrating reserve accumulation when many households continue to face economic hardship.

Opposition lawmaker Brian Mundubile recently challenged government narratives surrounding the country’s reserves, arguing that foreign exchange holdings do little to address the daily struggles of citizens.

“What good is a vault of dollars when the majority sleep hungry?” Mundubile questioned, adding that economic success should ultimately be measured by improvements in people’s lives rather than figures held in central bank accounts.

Economic analysts explain that foreign reserves are primarily designed to serve as a financial cushion for the nation. They help stabilise the exchange rate, provide confidence to investors, support debt negotiations, and ensure that essential imports can continue during periods of economic stress.

“Foreign reserves are a cushion for the state, not a meal for the people,” one economist observed, noting that while reserves are necessary for macroeconomic stability, they do not automatically translate into reduced poverty or improved household incomes.

The criticism resonates with many citizens who continue to grapple with high living costs, unemployment, and limited economic opportunities despite positive macroeconomic indicators.

According to development experts, the challenge facing Zambia and many African economies is converting macroeconomic gains into tangible improvements in living standards.

“Strong reserves are important, but citizens judge economic performance through jobs, food prices, healthcare, education, and household incomes,” said an economic governance analyst.

Government, meanwhile, maintains that rebuilding reserves is a necessary step toward long-term economic recovery after years of debt distress and fiscal instability.

Financial experts note that strong reserve levels enhance a country’s creditworthiness, attract investment, and help protect the local currency from external shocks. They argue that without adequate reserves, the country would face even greater economic difficulties.

Nonetheless, political observers warn that excessive focus on reserve figures risks creating a perception gap between policymakers and citizens.

“The danger is that macroeconomic success can become disconnected from people’s lived realities,” one analyst said. “Citizens want to know how economic improvements will put food on the table, create jobs, and improve public services.”

The ongoing debate highlights a broader question confronting policymakers: how to balance fiscal prudence and economic stability with the urgent need to address poverty and improve livelihoods.

While economists agree that foreign reserves remain a critical pillar of economic management, many also acknowledge that their true value will ultimately be judged by whether they contribute to inclusive growth and improved living conditions for ordinary Zambians.

As the political contest ahead of the 2026 elections gathers momentum, the country’s reserve position is likely to remain both an economic achievement for government and a political battleground for the opposition.

For many citizens, the issue is simple: strong reserves may stabilise the economy, but what matters most is whether that stability eventually translates into jobs, affordable food, and a better quality of life.

“You cannot eat reserves. They stabilise the economy, but they do not put nshima on the plate.”