LUSAKA, Feb. 3 (Xinhua) -- The Zambian government on Friday expressed optimism that the local currency, the Kwacha, which has depreciated significantly in recent months, will stabilize this year.
Minister of Finance and National Planning Situmbeko Musokotwane said the resumption of operations by two of the country's biggest mining firms, Konkola Copper Mines and Mopani Copper Mines, will result in increased foreign exchange inflows into the country's economy, a situation that will have positive effects on the foreign exchange market.
In remarks delivered at a national symposium on the 2023 economic performance, the 2024 budget as well as economic outlook, the minister said the lack of operations at the two mines has affected revenue collection.
"The Kwacha is facing too much pressure due to lack of dollars in circulation but the situation will change when new investors inject more liquidity in the two mining companies," he said.
Copper is the biggest economic mainstay for Zambia and accounts for over 70 percent in foreign exchange earnings.
He further said the local currency was under pressure because much of the fertilizer procured by the previous government was not paid in cash but through government bonds which have now started maturing.
Secretary to the Treasury Felix Nkulukusa said it was vital to concentrate on growing the economy as a way to increase financial resources for the development of the country.
He said enhanced growth of various sectors will result in higher economic growth, a situation that will see more jobs being created and more resources for public service.
"With the International Monetary Fund program and subsequent assistance from the World Bank and other cooperating partners, the restoration of macroeconomic stability of our economy will be realized through commitment and diligence towards meeting all structural benchmarks agreed upon in a timely manner," he said.
