The Socialist Party’s Copperbelt Province Spokesperson, Reagan Kashinga, has attributed the recent depreciation of the Zambian Kwacha to a decline in copper production in the country. As of Monday, the Kwacha was trading between K24.10 and K24.57 against the US Dollar.
In a media statement, Mr. Kashinga pointed out that the weakened state of the Kwacha is a direct consequence of the reduced foreign revenue generated from copper exports. He contended that the depreciation trend would persist as long as major copper mining operations, such as Konkola Copper Mines and Mopani, face operational challenges due to financial constraints.
“The Kwacha will continue depreciating due to low copper production, leading to diminished copper export volumes. The country’s foreign income has been negatively impacted by this decline, resulting in the weakened performance of the Kwacha,” stated Mr. Kashinga.
He asserted that the unresolved issues affecting the efficient operation of Konkola Copper Mines and Mopani Copper Mines were significant contributors to the Kwacha’s depreciation. According to Mr. Kashinga, the financial constraints and operational challenges faced by these strategic mines have led to decreased copper production.
Mr. Kashinga criticized the New Dawn Government, accusing it of failing to address the issues in the mining sector and lacking a clear strategy for the swift revival of Konkola Copper Mines and Mopani.
“We urge the New Dawn Government to resolve the challenges in the mining sector, ensuring that by January 2024, Mopani and KCM are operating at full capacity. However, it appears that the UPND Government lacks a plan or strategy to address the issues at Mopani and KCM. If not addressed promptly, the Kwacha may reach K25 or K26 against the dollar. These signs indicate a lamentable failure on the part of those managing the country’s affairs,” Mr. Kashinga concluded.