Economyin doldrums says Hamududu

The depreciation of the kwacha is a sign of a mismanaged economy by the Patriotic Front government, says Bweengwa Member of Parliament Mr Highvie Hamududu.

Mr Hamududu, an economist, said there were many unplanned moves by PF that had grave implications in the financial standing of the country.

He said the currency depreciation would have a spiral effect on the cost of living.

“The depreciation of the kwacha is a result of numerous unplanned moves and lack of particular thrust or focus for the economy,

“We have now seen the other resultant reaction, we have seen the price of fuel rising and therefore many commodities will now have the prices increased because literally everything depends on fuel to move around.”

He said the depreciation will have a spiral effect and the solution was to go back to the drawing board and admit all the mistakes.

The government should re-engineer itself by stopping excess expenditure, stop unplanned expenditure, and run a lean and cost effective government.

He warned that the kwacha would continue depreciating against other currencies if Zambia continued on the path of unplanned expenditure and excessive borrowing.

“If they continue at this pace, the kwacha will continue losing value, they will continue borrowing because the start has been wrong and now we are seeing the effects that are manifesting in form of the weakened currency and rising prices of commodities,” Mr Hamududu said.

He said the PF had started on a disruptive and disorganised note.

“The very disruptive and disorganised start of our colleagues as they have been doing a lot of things in a much unplanned manner,

“The way forward requires a complete change of the way they do business because without doing that, the kwacha will not ; the prices of commodities will not stabilise because the template that they are running is wrong.”

The kwacha is currently trading around K6.30 and K6.40 against the US Dollar.