Kwacha free fall worries Black Friday Campaigners

The depreciation of the kwacha has spurred an increase in commodity prices across the country,  Black Friday Campaigners have observed.

And the Black Friday campaigners have observed that the rate at which Zambia has developed an insatiable appetite for borrowing was very alarming.

Group chairperson McDonald Chipenzi yesterday said it was important that government quickly arrests the kwacha free fall situation before it harms the economy beyond measurable limits. “This is the first time our local currency is hitting a record  high K11.00 per pound and the relevant authority seems to have no clue on how to contain the problem. We challenge the Bank of Zambia (BoZ) and Ministry of Finance to tell the nation exactly what is causing this unprecedented depreciation of the Kwacha,” Mr Chipenzi said.

He questioned whether the government had failed to contain the problem.

He said the purchasing power of the kwacha was back to pre-minimum wage period making the minimum wage increase meaningless.

And Mr Chipenzi said it seemed Zambia was not learning from history because, a few years ago the country campaigned for debt relief which consequently led to Zambia qualifying to the High Indebted Poor Countries (HIPC) Initiatives and Zambia’s external debt was written off.

“You cannot be proud that your debt is now standing at US$4.2 billion and that since it does not exceed the international required ceiling then it is acceptable. This is recklessness of the worst kind being committed by people who do not care for the future,” he said.

He demanded for the resignation of Mr Alexander Chikwanda and Bank of Zambia governor Dr Michael Gondwe due to the failing economy.

He demanded to know where K44.2 million for the constitution which was allocated in the 2014 estimates of expenditure was, for the government to say that it does not have money for the referendum.

Mr Chipenzi also requested the government to tell the nation where the money saved from subsidies was.

“Can government tell us how many schools, hospitals and clinics have been built out of the subsidy savings? If none, can we then say this was another set of lies from the ministers involved which was aimed at hoodwinking the public?  Black Campaigners are still waiting for the benefits from subsidy removal,” Mr Chipenzi said.

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One Response to “Kwacha free fall worries Black Friday Campaigners”

  1. imute says:

    Mr. Chipenzi should understand that the failing Kwacha is not due to Alex or Gondwe, but it is due to some unforeseen but known circumstances that has trapped the PF government. There are two international issues that has much affected the relationship between Zambia and its major and friendly donors. These donors first want Zambia to explain clearly and satisfactorily the two issues to them before dollars start flowing in the country. One minister had hinted on this but it is unfortunate that PF Government is reluctant to do what the donors are saying. This state of affairs will continue because I cannot see the PF bowing to the demands of the donors. You will correct me by the end of this year Mr. Chipenzi.