Finance and National Planning Minister Situmbeko Musokotwane says Zambia’s foreign exchange performance is poised to improve as the two major mines namely Mopani and Konkola Copper Mines begin production while two other mines lumwana and first quantum also come on board.
Dr. Musokotwane says the Kwacha is currently under a lot of pressure because much of the fertilizer procured by the previous government was not paid in cash but through government bonds which are now maturing while the non-operation at KCM and MCM have also continued to affect the free flow of the currency.
Speaking at a 2023 Budget Review Symposium in Lusaka today, Dr. Musokotwane explains that even before Mopani is handed over to the new owners, they have so far sent $80 million, with $50 million expected soon while Vedanta Resources is also expected to inject $220 million though this will be after a court procedure.
Dr. Musokotwane says these two developments plus the commencement of operations by the two mines whose non-operation has affected the country's revenue collection will result in more dollars coming into Zambia’s economy and result in improved kwacha performance against other foreign currencies.
Meanwhile, the Finance Minister says he is shocked with the negativity zambia' debt restructuring process has attracted despite the country being the envy of many countries especially that it is doing far much better than the countries it found almost defaulting on their debt.
At the same event, Secretary to the Treasury Felix Nkulukusa has disclosed that Zambia has signed non-disclosure agreements with most of the 17 countries making up the country's official creditors.
And Bank of Zambia Governor Denny Kalyalya has disclosed that the country is doing well with the import cover though the challenge remains with the liquidity on the foreign exchange market.
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