UPND SHOULD EXPLAIN THE UNEXPLAINABLE ON KWACHA DEPRECATION
If we cast our minds back, you will realise that debt default by Zambia on Eurobond payment happened in November 2020. That was extremely terrible news for investors and the country at large. Everyone expected a run on the country’s economic performance. But that did not happen in comparison to what we are seeing now.
So, from November 2020 to date, we have not been servicing a large chunk of our debt except for multilateral institutions. So what has changed to cause this rapid run on the kwacha?
By contrast, UPND officially took office on August 24, 2021, after Mr Hakainde Hichilema was sworn in. They subsequently succeeded in concluding the IMF deal, signed an MoU with official creditors on debt restructuring, and now only remaining with private creditors. Resolved KCM by bringing Vedanta. Closed Mopani deal with a UAE company, completed Kafue gorge power station as they claim, FQM bringing in $1.2 billion investment, cell phone company being established by Chinese investors, $23 billion investment pledges recorded by ZDA, and so on and so forth.
With these extremely positive initiatives, how can the kwacha perform worse if you contrast to the extreme bad news of PF defaulting on debt repayment, failure to conclude IMF deal, low investment pledges, closure of KCM?
This does not make sense at all. We urge Mr Hichilema to EXPLAIN THE UNEXPLAINABLE so that Zambians can for once understand what is going on economically. We can no longer sit and watch the economy crush and fold our hands. “COMING SOON” is a huge fuel increase at the end of January.
President of the Socialist Party