Dr Mbita Chitala has advised the financial and fiscal management at the Ministry of Finance and the Bank of Zambia to resign so that the kwacha can be saved from the free fall depreciation.
Dr Chitala who is former finance deputy minister in the MMD administration and also Zambia Research Foundation Executive Director said the kwacha was losing value due to poor economic management that led to the introduction of SI 33 and SI 55 and their subsequent revocation.
He said investors that were removing their moneys from the local economy had lost trust in the current leadership managing the country’s financial control.
The Kwacha has continued to depreciate hitting K6.61 and K6.63, buying and selling against the dollar respectively as of yesterday.
The local currency has been rated Africa’s worst performing currency and second in the world after Ukraine.
From trading about US$1 to K3800 in 2011 as President Michael Sata was taking over power, the kwacha has weakened in drastic fashion and may soon hit the K7 (7000) against US$1 rate.
“The major problem we are facing is that of confidence in the economy and our managers. After the revocation of Statutory Instruments Number 33 and 55, the same managers are managing the economy. Ordinarily, it was going to be good for those managers to either resign on their own, or be shifted to other institutions so that new people come in,” Dr Chitala said.He said most investors had shifted their assets from Zambia.
“Those people who brought in SI 33 and 55 which led people to shift their assets from Zambia to foreign accounts have not yet returned their money as they are not yet convinced that these managers who had hurt them so much have now become better and consistent managers namely the people at the ministry of Finance and the Bank of Zambia,” Dr Chitala said.He insisted that the best the government could do was to shift the financial managers to other government institutions and appoint new people in those areas so that confidence could be restored.