Economic Freedom Fighters (EFF) President, Kasonde Mwenda, has attributed the recent rating of the Kwacha as Africa’s worst-performing currency against the US dollar to poor leadership.
This is according to a Bloomberg report quoted by Business Insider.
Mwenda charged that President Hakainde Hichilema and his administration have implemented misdirected and ill-informed economic interventions that are not yielding results.
He stated that the Bank of Zambia (BOZ) is being pressured by the International Monetary Fund (IMF) to indiscriminately adjust key monetary policy ratios over the last six months.
Mwenda highlighted that BOZ’s decision to increase the Monetary Policy Rate from 9.5% to 10% has raised the cost of borrowing, crippling local businesses struggling with high inflation and limited liquidity.
He added that the increase in Statutory Reserve Ratios from 9% to 11.5% has reduced the ability of commercial banks to lend.
He suggested that the government should focus on increasing local productivity by empowering Zambians to own and control their mineral wealth.
Mwenda also demanded that the government enforce strict revenue retention policies to ensure foreign investors reinvest in local infrastructure, industries, and communities instead of siphoning off wealth to their countries of origin.
Furthermore, he emphasized the need for the country to retain its monetary sovereignty by reducing dependence on the IMF and external dictates.
Mwenda urged the government to empower local entrepreneurs and small and medium enterprises by providing low-interest financing.
Byta FM
